Yahoo Finance Okta (OKTA) Rises Yet Lags Behind Market: Some Facts Worth Knowing
The latest trading session saw Okta (OKTA) ending at $96.55, denoting a +1.12% adjustment from its last day's close. This change lagged the S&P 500's 1.26% gain on the day. On the other hand, the Dow registered a gain of 1.18%, and the technology-centric Nasdaq increased by 1.99%.
Coming into today, shares of the cloud identity management company had lost 3.96% in the past month. In that same time, the Computer and Technology sector lost 2.46%, while the S&P 500 lost 2.68%.
The upcoming earnings release of Okta will be of great interest to investors. The company's earnings report is expected on May 29, 2024. The company is forecasted to report an EPS of $0.54, showcasing a 145.45% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $604.33 million, up 16.67% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.28 per share and revenue of $2.48 billion, indicating changes of +42.5% and +9.66%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Okta. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Okta boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Okta has a Forward P/E ratio of 41.96 right now. Its industry sports an average Forward P/E of 22.4, so one might conclude that Okta is trading at a premium comparatively.
Investors should also note that OKTA has a PEG ratio of 1.94 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software and Services industry currently had an average PEG ratio of 1.05 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 38, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow OKTA in the coming trading sessions, be sure to utilize Zacks.com.
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Okta, Inc. (OKTA) : Free Stock Analysis Report
