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Okta (OKTA) ended the recent trading session at $88.62, demonstrating a -0.87% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.61%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.28%.
The cloud identity management company's shares have seen an increase of 7.46% over the last month, surpassing the Computer and Technology sector's gain of 1.24% and the S&P 500's gain of 2.08%.
Market participants will be closely following the financial results of Okta in its upcoming release. The company is predicted to post an EPS of $0.73, indicating a 15.87% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $668.8 million, up 10.55% from the year-ago period.
OKTA's full-year Zacks Consensus Estimates are calling for earnings of $2.77 per share and revenue of $2.6 billion. These results would represent year-over-year changes of +73.13% and +14.75%, respectively.
Any recent changes to analyst estimates for Okta should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate has shifted 3.83% upward. Okta is currently sporting a Zacks Rank of #2 (Buy).
In the context of valuation, Okta is at present trading with a Forward P/E ratio of 32.29. For comparison, its industry has an average Forward P/E of 17.61, which means Okta is trading at a premium to the group.
Also, we should mention that OKTA has a PEG ratio of 1.36. 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 1.58 as of yesterday's close.
The Internet - Software and Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 51, this industry ranks in the top 21% of all industries, numbering over 250.