Okta (OKTA) Suffers a Larger Drop Than the General Market: Key Insights

Company Performance - Okta's stock closed at $89.83, reflecting a -1.32% change from the previous day, underperforming the S&P 500's daily loss of 0.4% [1] - Over the past month, Okta's shares have decreased by 4.81%, while the Computer and Technology sector gained 1.1% and the S&P 500 increased by 1.67% [1] Upcoming Earnings - Okta's earnings report is scheduled for August 26, 2025, with expected earnings of $0.84 per share, indicating a year-over-year growth of 16.67% [2] - The consensus estimate for revenue is projected at $711.04 million, reflecting a 10.07% increase from the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at $3.28 per share and revenue at $2.86 billion, representing year-over-year changes of +16.73% and +9.44%, respectively [3] Analyst Estimates and Rankings - Recent changes in analyst estimates for Okta are crucial for investors, as positive revisions indicate optimism about the business outlook [3] - Okta currently holds a Zacks Rank of 3 (Hold), with the Zacks Rank system showing an impressive track record of outperformance [5] Valuation Metrics - Okta's Forward P/E ratio is 27.73, which is a discount compared to the industry average Forward P/E of 63.52 [6] - The company has a PEG ratio of 1.64, while the Security industry has an average PEG ratio of 2.64 [6] Industry Context - The Security industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 81, placing it in the top 33% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]