Company Performance - Okta's stock closed at $89.08, reflecting a decrease of -1.18% from the previous trading session, underperforming the S&P 500's daily loss of 0.16% [1] - Over the past month, Okta's shares have declined by 0.85%, lagging behind the Computer and Technology sector's gain of 3.34% and the S&P 500's gain of 1.14% [1] Upcoming Earnings Report - Okta is expected to report earnings of $0.75 per share, indicating a year-over-year growth of 11.94%, with projected quarterly revenue of $729.17 million, up 9.65% from the previous year [2] Full Year Projections - For the full year, earnings are projected at $3.37 per share and revenue at $2.88 billion, representing increases of +19.93% and +10.3% respectively from the prior year [3] Analyst Estimates and Market Sentiment - Recent revisions in analyst estimates for Okta are seen as a reflection of near-term business trends, with positive revisions indicating optimism about the business outlook [3][4] - The Zacks Consensus EPS estimate has decreased by 0.34% over the past month, and Okta currently holds a Zacks Rank of 4 (Sell) [5] Valuation Metrics - Okta's Forward P/E ratio stands at 26.74, which is a discount compared to the industry average of 70.9 [6] - The company has a PEG ratio of 1.54, while the average PEG ratio for security stocks is 2.82 [6] Industry Context - The Security industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 211, placing it in the bottom 15% of over 250 industries [7] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating a challenging environment for the Security industry [7]

Core Viewpoint - Okta (OKTA) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Okta suggest an improvement in the company's underlying business, likely leading to increased stock prices [5]. Recent Performance and Projections - For the fiscal year ending January 2026, Okta is expected to earn $3.27 per share, reflecting a year-over-year increase of 16.4% [8]. - Over the past three months, the Zacks Consensus Estimate for Okta has surged by 92.4%, indicating strong upward revisions by analysts [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating [9][10]. - Okta's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Financial Performance - Okta Inc. reported a fiscal first-quarter profit of $62 million, translating to earnings of 35 cents per share. Adjusted earnings were 86 cents per share, surpassing Wall Street expectations of 77 cents per share from 14 analysts [1][2] - The company posted revenue of $688 million for the quarter, exceeding the forecast of $679.7 million from 13 analysts [2] Future Guidance - For the current quarter ending in July, Okta expects per-share earnings to range from 83 cents to 84 cents, with revenue anticipated between $710 million and $712 million for the fiscal second quarter [2] - The company projects full-year earnings in the range of $3.23 to $3.28 per share, with total revenue expected to be between $2.85 billion and $2.86 billion [3]