Yahoo Finance Okta (OKTA) Outpaces Stock Market Gains: What You Should Know
Okta (OKTA) closed at $81.19 in the latest trading session, marking a +1.05% move from the prior day. This move outpaced the S&P 500's daily gain of 0.95%. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq added 4.73%.
Heading into today, shares of the cloud identity management company had gained 4.47% over the past month, lagging the Computer and Technology sector's gain of 4.68% and outpacing the S&P 500's gain of 0.3% in that time.
Investors will be hoping for strength from Okta as it approaches its next earnings release, which is expected to be May 31, 2023. The company is expected to report EPS of $0.12, up 144.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $510.58 million, up 23.05% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.76 per share and revenue of $2.17 billion, which would represent changes of +2000% and +16.62%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Okta. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. Okta is currently a Zacks Rank #2 (Buy).
Digging into valuation, Okta currently has a Forward P/E ratio of 105.45. This represents a premium compared to its industry's average Forward P/E of 26.39.
It is also worth noting that OKTA currently has a PEG ratio of 4.22. 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. The Internet - Software and Services industry currently had an average PEG ratio of 4.22 as of yesterday's close.
The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 44, putting it in the top 18% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Okta, Inc. (OKTA) : Free Stock Analysis Report
