Yahoo Finance Okta (OKTA) Stock Slides as Market Rises: Facts to Know Before You Trade
Okta (OKTA) ended the recent trading session at $101.38, demonstrating a -1.22% swing from the preceding day's closing price. This change lagged the S&P 500's 0.25% gain on the day. On the other hand, the Dow registered a gain of 0.17%, and the technology-centric Nasdaq increased by 0.23%.
Coming into today, shares of the cloud identity management company had gained 10.07% in the past month. In that same time, the Computer and Technology sector gained 11.73%, while the S&P 500 gained 7.08%.
The investment community will be paying close attention to the earnings performance of Okta in its upcoming release. The company is slated to reveal its earnings 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. Alongside, our most recent consensus estimate is anticipating revenue of $604.33 million, indicating a 16.67% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.28 per share and revenue of $2.48 billion, which would represent changes of +42.5% and +9.66%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Okta. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Okta is currently a Zacks Rank #3 (Hold).
Digging into valuation, Okta currently has a Forward P/E ratio of 45.1. This valuation marks a premium compared to its industry's average Forward P/E of 33.04.
Also, we should mention that OKTA has a PEG ratio of 2.08. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software and Services industry was having an average PEG ratio of 1.03.
The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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
