In the latest trading session, Okta (OKTA) closed at $150.86, marking a -2.43% move from the previous day. This change lagged the S&P 500's daily gain of 0.38%. Elsewhere, the Dow saw an upswing of 0.29%, while the tech-heavy Nasdaq appreciated by 0.62%.
The stock of cloud identity management company has risen by 32.98% in the past month, leading the Computer and Technology sector's loss of 0.53% and the S&P 500's gain of 1.61%.
Investors will be eagerly watching for the performance of Okta in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.96, indicating a 5.49% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $792.14 million, indicating a 8.81% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.83 per share and a revenue of $3.2 billion, signifying shifts of +9.43% and +9.51%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Okta. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.72% higher within the past month. Right now, Okta possesses a Zacks Rank of #2 (Buy).
In the context of valuation, Okta is at present trading with a Forward P/E ratio of 40.38. Its industry sports an average Forward P/E of 52.91, so one might conclude that Okta is trading at a discount comparatively.
It is also worth noting that OKTA currently has a PEG ratio of 2.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Security industry had an average PEG ratio of 3.27.
The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 46, placing it within the top 19% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Okta, Inc. (OKTA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).