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Okta (OKTA) Stock Moves -0.18%: What You Should Know

In the latest trading session, Okta (OKTA) closed at $70.15, marking a -0.18% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.7%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 1.82%.

Prior to today's trading, shares of the cloud identity management company had lost 14.53% over the past month. This has lagged the Computer and Technology sector's loss of 1.16% and the S&P 500's gain of 0.39% in that time.

Wall Street will be looking for positivity from Okta as it approaches its next earnings report date. This 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. Our most recent consensus estimate is calling for quarterly revenue 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.

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Any recent changes to analyst estimates for Okta should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 1.02% higher within the past month. Okta currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, Okta is holding a Forward P/E ratio of 92.23. Its industry sports an average Forward P/E of 26.02, so we one might conclude that Okta is trading at a premium comparatively.

It is also worth noting that OKTA currently has a PEG ratio of 3.69. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software and Services industry currently had an average PEG ratio of 3.69 as of yesterday's close.

The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% 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.

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

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