Okta (OKTA) closed the most recent trading day at $141.21, moving -1.88% from the previous trading session. This move lagged the S&P 500's daily gain of 0.21%. Meanwhile, the Dow experienced a rise of 0.22%, and the technology-dominated Nasdaq saw an increase of 0.16%.
Heading into today, shares of the cloud identity management company had gained 1.56% over the past month, lagging the Computer and Technology sector's gain of 3.8% and the S&P 500's gain of 3.25%.
The upcoming earnings release of Okta will be of great interest to investors. The company's earnings report is expected on August 26, 2026. The company is predicted to post an EPS of $0.96, indicating a 5.49% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $792.14 million, indicating a 8.81% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.83 per share and revenue of $3.2 billion, indicating changes of +9.43% and +9.51%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Okta. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Okta boasts a Zacks Rank of #2 (Buy).
Looking at valuation, Okta is presently trading at a Forward P/E ratio of 37.58. This indicates a discount in contrast to its industry's Forward P/E of 46.41.
We can additionally observe that OKTA currently boasts a PEG ratio of 2.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. OKTA's industry had an average PEG ratio of 2.77 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 25, putting it in the top 11% of all 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Okta, Inc. (OKTA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).