In the latest close session, Okta (OKTA) was down 2.09% at $64.09. This move lagged the S&P 500's daily gain of 1.18%. Elsewhere, the Dow saw an upswing of 0.66%, while the tech-heavy Nasdaq appreciated by 1.96%.
The cloud identity management company's shares have seen a decrease of 15.16% over the last month, not keeping up with the Computer and Technology sector's gain of 5.37% and the S&P 500's gain of 3.93%.
The investment community will be closely monitoring the performance of Okta in its forthcoming earnings report. On that day, Okta is projected to report earnings of $0.86 per share, which would represent no growth from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $751.88 million, indicating a 9.28% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.77 per share and revenue of $3.18 billion. These totals would mark changes of +7.71% and +8.96%, respectively, from last year.
Any recent changes to analyst estimates for Okta should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Okta is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Okta is currently exchanging hands at a Forward P/E ratio of 17.35. This expresses a discount compared to the average Forward P/E of 30.56 of its industry.
We can additionally observe that OKTA currently boasts a PEG ratio of 1.09. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. OKTA's industry had an average PEG ratio of 2.39 as of yesterday's close.
The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 40% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Okta, Inc. (OKTA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).