Company Performance - Okta's stock closed at $94, reflecting a -0.98% change from the previous trading day, underperforming the S&P 500, which lost 0.47% [1] - Over the past month, Okta's shares appreciated by 20.47%, outperforming the Computer and Technology sector's loss of 0.19% and the S&P 500's gain of 1.67% [1] Upcoming Earnings - Okta is projected to report earnings of $0.73 per share, indicating a year-over-year growth of 15.87%, with revenue expected to be $668.8 million, a 10.55% increase compared to the same quarter last year [2] Annual Estimates - For the annual period, earnings are anticipated to be $2.77 per share and revenue at $2.6 billion, reflecting increases of +73.13% and +14.75% respectively from the previous year [3] Analyst Sentiment - Changes in analyst estimates for Okta are crucial as they indicate the evolving nature of business trends, with positive revisions suggesting analyst optimism regarding the company's profitability [3] Zacks Rank - Okta currently holds a Zacks Rank of 2 (Buy), with a 3.83% rise in the Zacks Consensus EPS estimate over the past month [5] Valuation Metrics - Okta's Forward P/E ratio is 34.29, indicating a premium compared to the industry average of 17.58 [6] - The company has a PEG ratio of 1.44, which is lower than the Internet - Software and Services industry average of 1.61 [7] Industry Context - The Internet - Software and Services industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 86, placing it in the top 35% of over 250 industries [8]

Core Viewpoint - Okta's shares have significantly outperformed the broader market and its industry, indicating strong investor confidence and growth potential [1][5]. Company Performance - Okta's shares have appreciated by 19.2% in the past month, compared to a 0.9% return for the Zacks Computer & Technology sector and a 13.6% appreciation for the Zacks Internet Software and Services industry [1]. - The company exited the third quarter of fiscal 2025 with 19,450 customers and $2.062 billion in current remaining performance obligations, showcasing strong future growth prospects for subscription revenues [6]. - Customers with more than $100K in Annual Contract Value increased by 8% year over year to 4,705 [6]. Product and Service Strength - Okta's portfolio includes innovative products like Okta identity governance and Okta privileged access, which are in high demand despite a challenging macroeconomic environment [2]. - The introduction of Okta AI capabilities across its Workforce Identity Cloud and Customer Identity Cloud aims to enhance user experiences and protect against cyberattacks [7]. - The company has expanded its Auth0 Free Plan to support 25,000 monthly active users and introduced features such as passwordless authentication and unlimited connections [8]. Market Position and Competitive Advantage - Okta is gaining market share in the cybersecurity domain, competing effectively against major players like Microsoft, IBM, and CyberArk [9]. - Gartner has ranked Okta higher than its competitors in all use cases for Access Management and has recognized it as a leader in the Magic Quadrant for Ability to Execute for three consecutive years [10]. Industry Outlook - The global security market is expected to grow significantly, with revenues projected to reach $200 billion by 2028, and Identity and Access Management (IAM) is anticipated to be one of the fastest-growing segments [12]. - The demand for secured remote access and enhanced protection during digital transformation is driving the growth prospects for IAM, which aligns with Okta's offerings [13]. Financial Projections - For Q4 fiscal 2025, Okta expects revenues between $667 million and $669 million, reflecting a year-over-year growth of 10-11% [15]. - The company anticipates fiscal 2025 revenues between $2.595 billion and $2.597 billion, indicating a 15% growth over fiscal 2024 [15]. - The Zacks Consensus Estimate for Okta's earnings for fiscal 2025 has increased to $2.77 per share, suggesting a 73.13% growth over fiscal 2024 [17]. Valuation - Okta shares are currently trading at a premium, with a forward 12-month Price/Sales ratio of 5.84X compared to the industry average of 3.87X [20]. - The company holds a Zacks Rank 2 (Buy) and a Growth Score of A, indicating a strong investment opportunity [23].

Company Analysis - Okta (NASDAQ: OKTA) is experiencing growth deceleration, potentially due to delayed fallout from past cybersecurity incidents [3] - The company is considered to have a strong balance sheet, which is a positive factor despite the growth challenges [3] Analyst Background - Julian Lin, the author, is a financial analyst who focuses on identifying undervalued companies with secular growth potential [3] - His investment approach emphasizes companies with strong balance sheets and management teams in sectors with long growth runways [3] Investment Strategy - Julian Lin leads the Best Of Breed Growth Stocks investing group, which targets stocks with a high probability of delivering significant alpha relative to the S&P 500 [3] - The group combines growth-oriented principles with strict valuation hurdles to enhance the conventional margin of safety [3] - Features of the group include exclusive access to high-conviction stock picks, full research reports, real-time trade alerts, and macro market analysis [3]

The latest trading session saw Okta (OKTA) ending at $85.46, denoting a +0.94% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.16% for the day. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.06%.Shares of the cloud identity management company witnessed a gain of 2.27% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.17% and the S&P 500's loss of 2.8%.The investment community w ...

I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the ...

Core Viewpoint - Okta is positioned for strong growth in the cybersecurity sector, driven by increasing demand for identity and access management solutions, with significant revenue expectations for fiscal 2025 and beyond [3][17][15]. Company Developments - In September, Okta enhanced the capabilities of Auth0 and the Okta Customer Identity Cloud, focusing on scalability, security, and customization for developers [1]. - Okta has expanded its Auth0 Free Plan to support 25,000 monthly active users and introduced new features such as passwordless login and unlimited connections [8]. - The company announced new Workforce Identity Cloud capabilities in October, addressing issues related to unmanaged SaaS accounts and identity verification [10]. Financial Performance - For the fourth quarter of fiscal 2025, Okta expects revenues between $667 million and $669 million, reflecting a year-over-year growth of 10-11% [3]. - The Zacks Consensus Estimate for Okta's earnings has increased by 9% to 73 cents per share, indicating a 15.87% growth year over year [5]. - Okta's revenues are projected to grow at a CAGR of 26% from fiscal 2022 to fiscal 2025 [13]. Market Position - Okta's portfolio strength is highlighted by strong demand for products like Okta identity governance and Okta privileged access, which are crucial in a challenging macroeconomic environment [6]. - The company has a growing customer base, with 19,450 customers and a significant increase in customers with over $100K in Annual Contract Value [25]. - Okta's innovative offerings, including AI-powered capabilities, are expected to enhance client acquisition and drive revenue growth [26]. Industry Outlook - The global security market is anticipated to experience double-digit growth, with revenues projected to reach $200 billion by 2028, particularly benefiting segments like Identity and Access Management [15]. - The increasing need for secure remote access and protection during digital transformation is expected to bolster the long-term prospects for Okta [29]. Valuation Metrics - Okta is trading at a forward Price/Sales ratio of 5.17X, which is a premium compared to the industry average of 2.82X [22]. - The company is expected to maintain a free cash flow margin of approximately 25% for fiscal 2025 [18].

After reaching an important support level, Okta (OKTA) could be a good stock pick from a technical perspective. OKTA surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.Similar to other SMAs, i ...

Group 1 - The cybersecurity company is experiencing growth in key areas, indicating a positive trend in its business performance [1] - Stock prices referenced were from the afternoon of December 16, 2024, suggesting a specific timeframe for the analysis [1] - The video discussing the company's performance was published on December 18, 2024, providing context for the information presented [1]

Group 1 - The core viewpoint emphasizes the identification of attractive risk/reward opportunities that can generate alpha above the S&P 500 through robust price action analysis [1][2] - The investment strategy focuses on growth investing, avoiding overhyped stocks while targeting battered stocks with significant recovery potential [2][3] - The investing group Ultimate Growth Investing specializes in high-potential opportunities across various sectors, with a focus on strong growth potential and contrarian plays over an 18 to 24 month outlook [3] Group 2 - The approach combines sharp price action analysis with fundamental investing to identify the most attractive upside potential [2] - The group is designed for investors looking to capitalize on growth stocks with robust fundamentals and attractive valuations [3]

Okta (OKTA) closed the last trading session at $81.99, gaining 11.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $103.30 indicates a 26% upside potential.The mean estimate comprises 33 short-term price targets with a standard deviation of $13.98. While the lowest estimate of $75 indicates an 8.5% decline from the current price level, the most optimistic analyst expects the stoc ...