Okta (OKTA) ended the recent trading session at $97.72, demonstrating a +2.72% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 1.47%. Elsewhere, the Dow saw an upswing of 1.34%, while the tech-heavy Nasdaq appreciated by 1.95%.
Shares of the cloud identity management company witnessed a loss of 4.02% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 3.41%, and the S&P 500's gain of 0.64%.
Analysts and investors alike will be keeping a close eye on the performance of Okta in its upcoming earnings disclosure. The company's earnings report is set to go public on August 26, 2025. The company is predicted to post an EPS of $0.84, indicating a 16.67% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $711.04 million, up 10.07% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.28 per share and revenue of $2.86 billion. These totals would mark changes of +16.73% and +9.44%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Okta. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Okta currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Okta is at present trading with a Forward P/E ratio of 28.96. This represents a discount compared to its industry average Forward P/E of 62.95.
It is also worth noting that OKTA currently has a PEG ratio of 1.71. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Security industry held an average PEG ratio of 2.93.
