Yahoo Finance Okta (OKTA) Beats Stock Market Upswing: What Investors Need to Know
In the latest trading session, Okta (OKTA) closed at $99.27, marking a +1.41% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.17%. Elsewhere, the Dow gained 0.88%, while the tech-heavy Nasdaq added 1.4%.
Shares of the cloud identity management company have appreciated by 3.03% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.41% and the S&P 500's gain of 2.46%.
Investors will be eagerly watching for the performance of Okta in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 29, 2024. The company is expected to report EPS of $0.54, up 145.45% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $604.33 million, reflecting a 16.67% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $2.28 per share and a revenue of $2.48 billion, demonstrating changes of +42.5% and +9.66%, respectively, from the preceding year.
Any recent changes to analyst estimates for Okta should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Okta boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Okta is presently trading at a Forward P/E ratio of 43.01. For comparison, its industry has an average Forward P/E of 21.13, which means Okta is trading at a premium to the group.
Investors should also note that OKTA has a PEG ratio of 1.99 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software and Services was holding an average PEG ratio of 1.02 at yesterday's closing price.
The Internet - Software and Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 46, positioning it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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
