In the latest trading session, Okta (OKTA) closed at $84.67, marking a +1.5% move from the previous day. This move outpaced the S&P 500's daily loss of 0.73%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 7.92%.
Coming into today, shares of the cloud identity management company had gained 19.38% in the past month. In that same time, the Computer and Technology sector gained 6.56%, while the S&P 500 gained 0.5%.
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. In that report, analysts expect Okta to post earnings of $0.12 per share. This would mark year-over-year growth of 144.44%. Our most recent consensus estimate is calling for quarterly revenue of $510.58 million, up 23.05% from the year-ago period.
OKTA's full-year Zacks Consensus Estimates are calling for earnings of $0.76 per share and revenue of $2.17 billion. These results would represent year-over-year changes of +2000% and +16.62%, respectively.
It is also important to note the recent changes to analyst estimates for Okta. These recent revisions tend to reflect the evolving nature of short-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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Okta is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Okta has a Forward P/E ratio of 109.47 right now. This represents a premium compared to its industry's average Forward P/E of 30.02.
Meanwhile, OKTA's PEG ratio is currently 4.38. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software and Services industry currently had an average PEG ratio of 4.38 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 35, which puts it in the top 14% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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