For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? Developed al ...

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - The Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the next 30 days [3] - Each stock is rated from A to F based on its characteristics, with A indicating the highest potential for outperformance [4] Value Score - The Value Style Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales to highlight attractive investment opportunities [4] Growth Score - The Growth Style Score assesses a company's future prospects by analyzing projected and historical earnings, sales, and cash flow to find stocks with sustainable growth potential [5] Momentum Score - The Momentum Style Score evaluates stocks based on price trends and earnings outlook changes, helping investors capitalize on upward or downward price movements [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors who utilize multiple investing strategies [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.86% since 1988, significantly outperforming the S&P 500 [8][9] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal return potential [10] Stock to Watch: Okta (OKTA) - Okta is currently rated 3 (Hold) on the Zacks Rank with a VGM Score of B, indicating a solid position in the market [12] - The company is highlighted as a potential growth investment, with a Growth Style Score of B and a forecasted year-over-year earnings growth of 7.7% for the current fiscal year [13] - Recent upward revisions in earnings estimates by 11 analysts for fiscal 2027 have increased the Zacks Consensus Estimate by $0.13 to $3.77 per share, alongside an average earnings surprise of +8.8% [13]

Core Insights - Okta, Inc. (NASDAQ:OKTA) is recognized as a promising stock, particularly following its expanded partnership with the PGA of America, which aims to enhance security for its network of golf professionals and fans [1][2] Group 1: Partnership with PGA of America - The expanded relationship with the PGA of America will explore innovative methods to deliver and secure an AI-powered digital experience, building on their existing technology collaboration [1] - Okta's platform provides resilience and scalability to support PGA members at every digital touchpoint, integrating advanced protections against AI risks [2] - The partnership aims to enable the PGA to safely deploy next-generation AI experiences, enhancing engagement while ensuring member protection [3] Group 2: Okta's Product Offerings - Okta, Inc. specializes in identity management for enterprises, offering products such as multi-factor authentication, single sign-on, API access management, and lifecycle management [4] - The company secures the identity of AI agents throughout their lifecycle, regardless of the task or environment [4]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, aiding in stock selection for potential market outperformance [2] Zacks Style Scores Overview - Stocks are rated A, B, C, D, or F based on value, growth, and momentum characteristics, with higher scores indicating better chances of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using ratios like P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Evaluates a company's financial strength and future outlook through projected and historical earnings, sales, and cash flow [4] Momentum Score - Targets stocks with upward or downward trends in price or earnings outlook, utilizing factors like one-week price change and monthly earnings estimate changes [5] VGM Score - Combines all three Style Scores to provide a comprehensive indicator for stock selection based on value, growth, and momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model based on earnings estimate revisions, with 1 (Strong Buy) stocks achieving an average annual return of +23.9% since 1988, significantly outperforming the S&P 500 [7] - There are over 800 top-rated stocks available, making it essential to use Style Scores for effective stock selection [8] Investment Strategy - For optimal returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with a 3 (Hold) rank should also have A or B Scores to maximize upside potential [9] Earnings Estimate Revisions - The direction of earnings estimate revisions is crucial; stocks with lower ranks but high Style Scores may still face downward price pressure [10] Company Spotlight: Okta (OKTA) - Okta provides cloud-based identity solutions and is currently rated 3 (Hold) with a VGM Score of B [11] - The company has a Momentum Style Score of A, with shares increasing by 6.8% over the past four weeks and upward earnings estimate revisions for fiscal 2026 [12] - The Zacks Consensus Estimate for Okta has risen by $0.07 to $3.44 per share, with an average earnings surprise of +9.1% [12]

Core Insights - Broadcom (AVGO) and Okta (OKTA) are significant players in the enterprise security software market, with Broadcom offering a wide range of security solutions and Okta focusing on cloud-based identity solutions [1][2] Industry Overview - Gartner projects enterprise spending on cybersecurity software and network security to grow by 14% in 2025, reaching $118.5 billion, driven by demand for Generative AI and cloud adoption [2] - IDC anticipates global cybersecurity spending to increase by 12.2% year over year in 2025, with security software spending expected to grow by 14.4% year over year [2] Company Performance - Broadcom's infrastructure software revenues rose by 25% year over year to $6.6 billion in Q2 of fiscal 2025, accounting for 44% of total revenues [7] - Okta's stock has appreciated 21.1% year to date, benefiting from strong demand for its innovative security products [3][11] Product Innovations - Broadcom has introduced several AI-powered security features, including updates to VMware vDefend and Incident Prediction, aimed at enhancing threat prevention and operational efficiency [9][10] - Okta's new protocol, Cross App Access, enhances security for AI agents and improves user experience by streamlining authorization processes [12][13] Earnings Estimates - The Zacks Consensus Estimate for Broadcom's fiscal 2025 earnings is $6.64 per share, indicating a 36.34% increase over fiscal 2024 [14] - Okta's fiscal 2026 earnings estimate remains steady at $3.28 per share, suggesting a 16.73% growth over fiscal 2025 [15] Valuation Metrics - Broadcom's shares are trading at a forward Price/Sales ratio of 18.55X, significantly higher than Okta's 5.6X, indicating that Okta is currently undervalued [17] - Both companies are considered overvalued based on their Value Scores, with Broadcom rated D and Okta rated F [18] Investment Outlook - Broadcom expects its AI revenues to increase by 60% year over year to $5.1 billion in Q3 of fiscal 2025, although it anticipates sluggishness in other business segments [22] - Okta's strong growth prospects are highlighted by its 20,000 customers and $4.084 billion in remaining performance obligations as of Q1 fiscal 2026 [23] - Okta is rated as a better buy compared to Broadcom, with a Zacks Rank of 2 (Buy) versus Broadcom's 3 (Hold) [24]

Core Viewpoint - Okta's shares fell 16.16% to $105.22 after reporting strong earnings and revenue growth, primarily due to slowing growth expectations for the upcoming fiscal second quarter and fiscal 2026 [1] Financial Performance - For Q2 fiscal 2026, Okta expects revenues between $710 million and $712 million, reflecting a 10% year-over-year growth, down from 11.5% in Q1 fiscal 2026 [2] - For fiscal 2026, Okta anticipates revenues between $2.85 billion and $2.86 billion, indicating a 9-10% growth from fiscal 2025 [3] - Non-GAAP earnings for fiscal 2026 are projected between $3.23 and $3.28 per share, an increase from previous guidance of $3.15 to $3.20 per share [3] Market Performance - Year-to-date, Okta shares have returned 33.5%, outperforming peers like Microsoft (8.5%), IBM (14.5%), and CyberArk (18.4%) [4] - The Zacks Consensus Estimate for Q2 fiscal 2026 earnings remains steady at 79 cents per share, suggesting a 9.72% year-over-year growth [7] - For fiscal 2026, the Zacks Consensus Estimate for earnings is $3.19 per share, indicating a 13.52% growth over fiscal 2025 [8] Product Demand and Client Growth - Okta is experiencing strong demand for its identity solutions, including Identity Governance and Privileged Access, which are crucial for managing non-human identities [9] - The company exited Q1 fiscal 2026 with approximately 20,000 customers and $4.084 billion in remaining performance obligations (RPOs), indicating robust subscription revenue growth [10] - The number of customers with over $100,000 in Annual Contract Value increased by 70 sequentially to 4,870 [10] Strategic Partnerships and Innovations - Okta's governance portfolio has surged 400% over the past three years, reaching nearly $40 billion, supported by a strong partner ecosystem including AWS, Microsoft, and Salesforce [12] - The company offers AI-powered capabilities through Okta AI, enhancing user experiences and cybersecurity [11] Valuation and Market Sentiment - Okta shares are considered overvalued, with a Price/Cash Flow ratio of 24.59X compared to the sector's 19.8X, indicating a premium valuation [13] - The stock is trading below its 50-day and 200-day moving averages, suggesting a bearish trend [16] - Despite its innovative portfolio, Okta faces challenges from macroeconomic conditions and a stretched valuation, leading to a Zacks Rank 3 (Hold) [19]

Core Viewpoint - Okta's shares have faced an 11% decline in a month due to a challenging macroeconomic environment, but an innovative product portfolio is expected to drive significant growth in 2025 [1] Company Performance - Year-to-date, Okta shares have returned 29.3%, outperforming competitors like Microsoft (MSFT), IBM, and CyberArk, which returned 3.6%, 4.6%, and -8.2% respectively [2] - Okta exited the fourth quarter of fiscal 2025 with 19,650 customers and $4.215 billion in remaining performance obligations, indicating strong growth prospects for subscription revenues [5] - Customers with over $100 thousand in Annual Contract Value increased by 7% year-over-year to 4,800 [5] Product Demand and Innovation - Okta's innovative portfolio, including Okta AI and various identity solutions, is driving strong demand and client acquisition [5][6] - The recent introduction of Auth for GenAI in Developer Preview enhances secure identity integration in GenAI applications [8] Market Position and Recognition - Okta is gaining market share in the cybersecurity domain, outperforming Microsoft, IBM, and CyberArk, and has received accolades from Gartner for its access management capabilities [10][9] - The company has a rich partner base, including AWS, Google, and Salesforce, with over 7,000 integrations as of January 31, 2025 [11] Financial Outlook - For Q1 fiscal 2026, Okta expects revenues between $678 million and $680 million, reflecting a 10% year-over-year growth, with non-GAAP earnings projected between 76 and 77 cents per share [12] - For fiscal 2026, revenues are expected to be between $2.85 billion and $2.86 billion, indicating 9-10% growth from fiscal 2025 [13] - Okta's earnings have consistently beaten Zacks Consensus Estimates, with an average surprise of 15.7% over the trailing four quarters [14] Valuation Metrics - Okta is trading at a forward Price/Sales ratio of 6.05X, compared to the broader sector's 5.56X, indicating a premium valuation [15] - The stock is currently trading above the 200-day moving average, suggesting a bullish trend [19]