Okta (OKTA) ended the recent trading session at $141.71, demonstrating a -4.51% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 0.74%, and the Nasdaq, a tech-heavy index, added 1.29%.
Shares of the cloud identity management company have appreciated by 28.01% over the course of the past month, outperforming the Computer and Technology sector's loss of 6.6%, and the S&P 500's loss of 0.63%.
The investment community will be paying close attention to the earnings performance of Okta in its upcoming release. The company's upcoming EPS is projected at $0.96, signifying a 5.49% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $792.14 million, up 8.81% from the prior-year quarter.
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 might also notice recent changes to analyst estimates for Okta. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.04% upward. Okta currently has a Zacks Rank of #2 (Buy).
Looking at valuation, Okta is presently trading at a Forward P/E ratio of 38.75. This indicates a discount in contrast to its industry's Forward P/E of 50.85.
We can also see that OKTA currently has a PEG ratio of 2.44. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Security was holding an average PEG ratio of 3.24 at yesterday's closing price.
The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 40, placing it within the top 17% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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).