Okta (OKTA) Rises Higher Than Market: Key Facts

Analysts and investors alike will be keeping a close eye on the performance of Okta in its upcoming earnings disclosure. On that day, Okta is projected to report earnings of $0.96 per share, which would represent year-over-year growth of 5.49%. Our most recent consensus estimate is calling for quarterly revenue of $792.14 million, up 8.81% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.83 per share and a revenue of $3.2 billion, signifying shifts of +9.43% and +9.51%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Okta. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 a 0.04% rise in the Zacks Consensus EPS estimate. At present, Okta boasts a Zacks Rank of #2 (Buy).

Investors should also note Okta's current valuation metrics, including its Forward P/E ratio of 35.75. This valuation marks a discount compared to its industry average Forward P/E of 48.6.

Meanwhile, OKTA's PEG ratio is currently 2.25. 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. Security stocks are, on average, holding a PEG ratio of 3.34 based on yesterday's closing prices.

The Security industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 163, placing it within the bottom 34% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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This article originally published on Zacks Investment Research (zacks.com).

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