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.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow OKTA in the coming trading sessions, be sure to utilize Zacks.com.

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