Group 1 - IHS Holding is currently ranked 1 (Strong Buy) in the Zacks Rank system, indicating a favorable outlook for the stock [3] - The Zacks Consensus Estimate for IHS' full-year earnings has increased by 30.9% over the past quarter, reflecting improved analyst sentiment [4] - Year-to-date, IHS Holding has gained approximately 57.5%, significantly outperforming the average loss of 14.5% in the Computer and Technology sector [4] Group 2 - IHS Holding is part of the Communication - Infrastructure industry, which is currently ranked 16 in the Zacks Industry Rank [6] - The Communication - Infrastructure industry has shown better year-to-date performance compared to the average gain of 1.3% in its group [6] - Another notable stock in the Computer and Technology sector is Okta (OKTA), which has increased by 29.2% year-to-date and has a Zacks Rank of 2 (Buy) [5]

Core Viewpoint - The cybersecurity market is projected to grow significantly, benefiting both Cisco Systems and Okta, with Cisco focusing on enterprise network security and Okta on identity and access management [2]. Group 1: Cisco Systems - Cisco Systems' security business is experiencing robust growth, with strong demand for Cisco Secure Access and XDR, attracting over 1,000 customers and approximately 1 million enterprise users for each product [3]. - In Q2 fiscal 2025, Cisco's security orders more than doubled, with security revenues increasing 117% year over year to $2.11 billion, driven by Splunk, SASE, and Network Security [4]. - Cisco launched new security products, including Splunk on Azure and AI Assistant for Splunk Observability, expanding its security portfolio [5]. - Cisco is collaborating with NVIDIA to develop the Cisco Secure AI Factory, focusing on securing AI infrastructure [6]. Group 2: Okta - Okta is experiencing strong demand for its identity security solutions, with over 20% of Q4 fiscal 2025 bookings from new products, including Okta Identity Governance and Identity Threat Protection [7]. - The company served 19,650 customers by the end of Q4 fiscal 2025, reflecting a growing need for secure identity management [8]. - Okta's partnership with AWS has strengthened its security efforts, with over 70% of deals influenced by partners, surpassing $1 billion in total contract value through this partnership [9]. Group 3: Stock Performance and Valuation - Year to date, Cisco shares have decreased by 10.2%, while Okta shares have increased by 15.9%, with Cisco facing challenges from macroeconomic uncertainty and competition [10]. - Both Cisco and Okta shares are currently considered overvalued, with Cisco trading at a forward Price/Sales ratio of 3.64X and Okta at 5.47X [13]. - The Zacks Consensus Estimate for Cisco's fiscal 2025 earnings is $3.72 per share, indicating a 0.27% decline year over year, while Okta's fiscal 2026 earnings estimate is $3.17 per share, reflecting a 12.81% increase year over year [16]. Group 4: Earnings Performance - Both Cisco and Okta have consistently beaten earnings estimates in the past four quarters, with Okta showing a higher average surprise of 15.7% compared to Cisco's 4.07% [17]. Group 5: Conclusion - Okta is viewed as a more attractive investment due to its focus on identity solutions, stronger earnings performance, and higher growth potential, while Cisco is expanding its security footprint [18].

Group 1 - Okta Inc (NASDAQ:OKTA) has experienced a significant pullback of 12.6% since the beginning of April, following a two-year high of $118.07 on March 24 [1] - The stock is currently interacting with its 126-day moving average, which is historically considered a bullish signal [1] - The stock has maintained a year-to-date gain of 16.9% and is in "oversold" territory with a 14-day relative strength index (RSI) of 15.2, indicating potential for a short-term bounce [4] Group 2 - For the first time in at least eight of the last ten trading days, Okta's stock is within one standard deviation of the 126-day trendline, after spending over 75% of the last six months above it [2] - Historical data shows that after similar occurrences in the past three years, Okta's stock was higher one month later 100% of the time, with an average gain of 28.7% [2]

Group 1 - The average brokerage recommendation (ABR) for Okta (OKTA) is 2.00, indicating a Buy, based on recommendations from 39 brokerage firms, with 48.7% as Strong Buy and 5.1% as Buy [2][5][14] - Brokerage recommendations may not effectively guide investors in selecting stocks with high potential for price appreciation, as studies suggest limited success in this regard [5][10] - Analysts from brokerage firms tend to exhibit a positive bias in their ratings due to vested interests, often leading to a misalignment with retail investors' interests [6][7][10] Group 2 - The Zacks Rank, which is based on earnings estimate revisions, is a more reliable indicator of near-term stock price performance compared to ABR, which is solely based on brokerage recommendations [8][11] - The Zacks Consensus Estimate for Okta has increased by 5.7% over the past month to $3.17, indicating growing optimism among analysts regarding the company's earnings prospects [13] - The recent change in the consensus estimate, along with other factors, has resulted in a Zacks Rank 2 (Buy) for Okta, suggesting that the Buy-equivalent ABR may be a useful guide for investors [14]

Core Insights - The article discusses the transformative impact of Artificial Intelligence (AI) across various industries, highlighting its capabilities in data processing, pattern recognition, and autonomous decision-making [2][3] - The emergence of Generative AI (Gen AI) and Agentic AI is noted as a significant advancement, enhancing efficiency, automation, and innovation [2][4] - Major U.S. tech companies are leading AI advancements, with substantial investments projected in AI infrastructure, including a joint venture aiming to invest $500 billion over four years [4][5] AI Industry Overview - AI is revolutionizing sectors such as robotics, healthcare, finance, cybersecurity, and e-commerce through machine learning, deep learning, and natural language processing [2] - The global spending on AI infrastructure is expected to increase significantly, driven by major players like Microsoft, Amazon, IBM, Google, and Meta Platforms [4] Company-Specific Developments - Meta Platforms is leveraging AI to enhance user engagement, with a capital expenditure plan of $60 billion to $65 billion for AI in 2025, and has over 700 million monthly active users of its AI services [6][7] - IBM is experiencing strong demand for its Gen AI offerings, with its AI business growing to over $5 billion, driven by both software and consulting services [8][9] - Okta is expanding its client base with AI-powered solutions, reporting a 7% year-over-year increase in high-value customers and surpassing $1 billion in total contract value through partnerships [10][11]

Core Insights - Louis Stevens is a highly regarded investment analyst with a background as a former U.S. Army engineer officer, holding an MBA and a BA in political science [1] - He founded L.A. Stevens Research and developed the LAS Index, which has consistently outperformed market indices since its inception [2] Company Overview - L.A. Stevens Research is focused on providing investment research and analysis, catering to a diverse audience from beginners to seasoned professionals [2] - The LAS Index is a proprietary basket of stocks selected through a unique investment methodology, demonstrating strong performance relative to broader market indices [2]

Okta (OKTA) shares have appreciated 48.2% year to date (YTD), courtesy of its portfolio strength. More than 20% of fourth-quarter fiscal 2025 bookings were from new products, including Okta Identity Governance, Privileged Access, Device Access, Fine Grain Authorization, Identity Security Posture Management and Identity Threat Protection with Okta AI.OKTA’s innovative portfolio is helping the company win clients, driving top-line growth. It exited fourth-quarter fiscal 2025 with 19,650 customers and $4.215 b ...

Group 1: Alphabet and Cybersecurity Landscape - Alphabet's acquisition of Wiz for $32 billion marks its largest deal and indicates a significant shift in the cybersecurity landscape [1][2] - The deal highlights the increasing importance of cybersecurity in cloud computing, especially with AI driving new security threats [3][9] - This acquisition may prompt other tech giants like Microsoft and Amazon to pursue similar cybersecurity firms to enhance their security capabilities [10] Group 2: Okta's Positioning - Okta is well-positioned to benefit from the rising focus on identity security due to increased cloud adoption and regulatory demands [4][5] - The company's solutions address complex identity security challenges in multi-cloud environments, enhancing user authentication across platforms [4] - Regulatory compliance is a key growth driver for Okta, as its solutions help organizations meet stringent security mandates [5] Group 3: Fortinet's Growth - Fortinet experienced a strong 17% revenue growth in Q4 2024, with product revenues growing 18%, its highest in six quarters [6] - The adoption of AI-driven cybersecurity and Secure Access Service Edge (SASE) solutions has increased demand for Fortinet's unified security platform [6] - Fortinet's AI-driven security strategy aligns with the industry's trend toward consolidated security platforms, enhancing its market position [7] Group 4: Investment Opportunities - The growing focus on digital security and the potential for industry consolidation may lead to higher valuations for cybersecurity leaders like Okta and Fortinet [9][10] - Investors are encouraged to consider Okta and Fortinet as prime beneficiaries of the cybersecurity boom, with both stocks carrying a Zacks Rank 2 (Buy) [11]

Have you been paying attention to shares of Okta (OKTA) ? Shares have been on the move with the stock up 28.1% over the past month. The stock hit a new 52-week high of $118.07 in the previous session. Okta has gained 47.7% since the start of the year compared to the -6.1% move for the Zacks Computer and Technology sector and the 7.7% return for the Zacks Security industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus ...

Economic Environment - The U.S. stock market is experiencing heightened volatility due to fears of an economic slowdown linked to newly imposed tariffs, including a 25% tariff on imports from Mexico and Canada and a 10% tariff on imports from China [1][2] - Trade from Canada, Mexico, and China accounts for 24% of the U.S. GDP, contributing to investor concerns and resulting in a 5% decline in the S&P 500 index over the past month [2] Market Performance - Year-to-date performance shows declines in major indices: Dow Jones Industrial Average down 1.3%, Nasdaq Composite down 7.9%, and S&P 500 down 3.6% [3] - The sluggish recovery in global automotive and industrial markets, driven by muted consumer demand and supply chain disruptions, is undermining investor confidence [2] Growth-Rated Tech Stocks - Growth-rated tech stocks such as NVIDIA, Marvell Technology, Okta, and RingCentral are highlighted as potential investment opportunities due to their financial stability and growth potential [4][5] - These stocks have shown resilience in the current macroeconomic environment and are expected to maintain growth momentum [5] Individual Company Insights - **RingCentral (RNG)**: Strong position in the Unified Communication as a Service (UCaaS) market, with a fiscal 2025 EPS estimate of $4.20, indicating a year-over-year growth of 13.5% [7][8] - **NVIDIA (NVDA)**: Leading in AI with its GPUs, fiscal 2026 EPS estimate of $4.40 reflects a year-over-year growth of 47.2% [9][12] - **Okta**: A key player in identity security, with a fiscal 2026 EPS estimate of $3.16, indicating a year-over-year growth of 12.5% [13][15] - **Marvell Technology (MRVL)**: Benefits from strong demand in the data center market, with a fiscal 2026 EPS estimate of $2.76, indicating a year-over-year growth of 75.8% [16][18] Investment Ratings - All highlighted stocks carry favorable Zacks Ranks: RingCentral and NVIDIA at Rank 1, while Okta and Marvell Technology at Rank 2, with Growth Scores of A or B indicating solid investment opportunities [6][12][15][18]