Track market-moving stories before they get noisy

Posted by Defense World Staff on Jul 23rd, 2026

California Public Employees Retirement System reduced its holdings in Okta, Inc. (NASDAQ:OKTA – Free Report) by 2.0% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 291,645 shares of the company’s stock after selling 5,813 shares during the quarter. California Public Employees Retirement System owned 0.16% of Okta worth $22,955,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Kera Capital Partners Inc. lifted its position in shares of Okta by 18.4% during the 1st quarter. Kera Capital Partners Inc. now owns 6,394 shares of the company’s stock valued at $503,000 after acquiring an additional 993 shares during the last quarter. Assetmark Inc. lifted its holdings in shares of Okta by 81.1% during the first quarter. Assetmark Inc. now owns 719 shares of the company’s stock valued at $57,000 after purchasing an additional 322 shares during the last quarter. Bessemer Group Inc. boosted its position in shares of Okta by 2.1% in the 1st quarter. Bessemer Group Inc. now owns 32,752 shares of the company’s stock valued at $2,576,000 after purchasing an additional 682 shares during the period. SteelPeak Wealth LLC increased its stake in Okta by 2.8% in the 1st quarter. SteelPeak Wealth LLC now owns 5,166 shares of the company’s stock worth $407,000 after purchasing an additional 140 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC increased its stake in Okta by 71.9% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 3,553,091 shares of the company’s stock worth $281,209,000 after purchasing an additional 1,485,963 shares in the last quarter. 86.64% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades A number of analysts have commented on OKTA shares. Canaccord Genuity Group upped their price objective on shares of Okta from $95.00 to $115.00 and gave the company a “buy” rating in a research note on Friday, May 29th. Raymond James Financial downgraded shares of Okta from a “buy” rating to a “strong sell” rating in a research report on Monday, July 6th. Arete Research set a $127.00 price target on shares of Okta and gave the company a “buy” rating in a report on Tuesday, May 26th. KeyCorp upped their price target on shares of Okta from $130.00 to $175.00 and gave the company an “overweight” rating in a research report on Friday, July 10th. Finally, Jefferies Financial Group raised shares of Okta from a “buy” rating to a “buy” rating in a research note on Monday, July 6th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating, thirteen have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $121.81.

View Our Latest Research Report on Okta

Insider Buying and Selling at Okta In related news, Director Shellye L. Archambeau sold 2,500 shares of the business’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $85.00, for a total value of $212,500.00. Following the completion of the sale, the director owned 9,192 shares of the company’s stock, valued at approximately $781,320. The trade was a 21.38% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Larissa Schwartz sold 2,463 shares of the stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $120.00, for a total value of $295,560.00. Following the completion of the transaction, the insider owned 25,241 shares in the company, valued at $3,028,920. This represents a 8.89% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 174,224 shares of company stock worth $22,534,353 over the last quarter. Insiders own 4.61% of the company’s stock.

Trending Headlines about Okta Here are the key news stories impacting Okta this week:

Positive Sentiment: Okta is being highlighted by multiple outlets as a strong momentum stock, suggesting investor interest remains high despite the pullback. Article Title Positive Sentiment: Analysts continue to point to Okta as a beneficiary of rising enterprise AI adoption, which is supporting demand for cybersecurity, identity protection, and zero-trust tools. Article Title Positive Sentiment: Recent commentary around the AI era of cybersecurity, including the OpenAI hack discussion, reinforces the broader theme that spending on security may rise alongside AI investment. Article Title Neutral Sentiment: Okta remains one of the more widely watched stocks on Zacks, and that attention may help keep trading volume and volatility elevated. Article Title Negative Sentiment: The recent drop appears tied to no fresh negative company announcement, making the move more consistent with a post-rally cooling-off period and broader software-sector caution. Article Title Negative Sentiment: Some market participants are also worried that enterprise tech budgets could shift toward AI infrastructure, which may weigh on software spending expectations across the sector. Article Title Okta Stock Down 3.5% OKTA stock opened at $136.69 on Thursday. The company has a 50 day moving average of $121.98 and a two-hundred day moving average of $95.28. The company has a market cap of $23.76 billion, a price-to-earnings ratio of 99.05, a PEG ratio of 5.10 and a beta of 0.77. Okta, Inc. has a 12-month low of $62.66 and a 12-month high of $157.00.

Okta (NASDAQ:OKTA – Get Free Report) last posted its quarterly earnings results on Thursday, May 28th. The company reported $0.91 earnings per share for the quarter, topping analysts’ consensus estimates of $0.85 by $0.06. Okta had a net margin of 8.24% and a return on equity of 4.15%. The business had revenue of $765.00 million for the quarter, compared to the consensus estimate of $751.84 million. During the same period in the prior year, the business posted $0.86 earnings per share. Okta’s revenue for the quarter was up 11.2% compared to the same quarter last year. Okta has set its FY 2027 guidance at 3.790-3.870 EPS and its Q2 2027 guidance at 0.950-0.970 EPS. On average, research analysts anticipate that Okta, Inc. will post 1.75 EPS for the current year.

About Okta (Free Report)

Okta, Inc is a publicly traded provider of identity and access management solutions, headquartered in San Francisco, California. Founded in 2009 by Todd McKinnon and Frederic Kerrest, the company completed its initial public offering in April 2017. Under the leadership of McKinnon as chief executive officer and Kerrest as chief operating officer, Okta has grown into a leading vendor in the cybersecurity space, focusing on secure user authentication, single sign-on and lifecycle management for digital identities.

At the core of Okta’s offering is the Okta Identity Cloud, a suite of cloud-native services that enable organizations to manage user access across web and mobile applications, on-premises systems and APIs.

Featured Articles Five stocks we like better than Okta Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play Want to see what other hedge funds are holding OKTA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Okta, Inc. (NASDAQ:OKTA – Free Report).

Receive News & Ratings for Okta Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Okta and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINEBank of New York Mellon Corp Cuts Stake in Valmont Industries, Inc. $VMI

NEXT HEADLINE »Datadog, Inc. $DDOG Shares Bought by D.A. Davidson & CO.

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Okta (OKTA - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Okta currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for OKTA that show why this cloud identity management company shows promise as a solid momentum pick.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For OKTA, shares are up 7.73% over the past week while the Zacks Security industry is up 7.66% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 19.93% compares favorably with the industry's 17.87% performance as well.

While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Okta have increased 85.97% over the past quarter, and have gained 48.15% in the last year. On the other hand, the S&P 500 has only moved 6.61% and 20.33%, respectively.

Investors should also pay attention to OKTA's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. OKTA is currently averaging 3,020,678 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with OKTA.

Over the past two months, 13 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost OKTA's consensus estimate, increasing from $3.79 to $3.83 in the past 60 days. Looking at the next fiscal year, 11 estimates have moved upwards while there have been 1 downward revision in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that OKTA is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Okta on your short list.

Okta (OKTA - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this cloud identity management company have returned +28%, compared to the Zacks S&P 500 composite's -0.6% change. During this period, the Zacks Security industry, which Okta falls in, has gained 17.9%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Okta is expected to post earnings of $0.96 per share, indicating a change of +5.5% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $3.83 points to a change of +9.4% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $4.29 indicates a change of +12.1% from what Okta is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Okta is rated Zacks Rank #2 (Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Okta, the consensus sales estimate for the current quarter of $792.14 million indicates a year-over-year change of +8.8%. For the current and next fiscal years, $3.2 billion and $3.5 billion estimates indicate +9.5% and +9.6% changes, respectively.

Last Reported Results and Surprise HistoryOkta reported revenues of $765 million in the last reported quarter, representing a year-over-year change of +11.2%. EPS of $0.91 for the same period compares with $0.86 a year ago.

Compared to the Zacks Consensus Estimate of $751.34 million, the reported revenues represent a surprise of +1.82%. The EPS surprise was +7.06%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Okta is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Okta. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

© Yuichiro Chino / Moment via Getty Images

Wells Fargo (NYSE:WFC | WFC Price Prediction) just delivered a striking pair of price target hikes on cybersecurity leaders Okta (NASDAQ:OKTA) and Fortinet (NASDAQ:FTNT). The firm raised its Okta stock price target to $150 from $100 while keeping an Equal Weight rating, and lifted its Fortinet stock price target to $120 from $70 while keeping an Underweight rating. For investors, the size of these hikes matters more than the unchanged ratings: they mark a sector-wide re-rating rather than a green light to pile in.

The move lands as cybersecurity demand accelerates on the back of AI-driven threat proliferation and enterprise platform consolidation. Both Okta and Fortinet have posted five consecutive quarterly EPS beats, and management teams at each are pitching their platforms as essential infrastructure for securing AI agents and hybrid workloads.

Still, Wells Fargo kept Okta stock at Equal Weight and Fortinet stock at Underweight, signaling that valuation, not fundamentals, is the constraint. That gap between raised targets and cautious ratings is what investors need to weigh before adding exposure here.

Ticker Company Firm Action Old Rating New Rating Old Target New Target OKTA Okta Wells Fargo Price Target Raise Equal Weight Equal Weight $100 $150 FTNT Fortinet Wells Fargo Price Target Raise Underweight Underweight $70 $120 The Analyst’s Case Wells Fargo’s rationale is identical for both names. Supplementing 14 field checks over the past month, the firm’s Q2 on-cycle reseller survey pointed to improving overall cyber demand driven by AI-related urgency. That’s a demand-side signal, and it’s why targets moved sharply higher on Okta stock and Fortinet stock.

Yet, the ratings didn’t budge. Equal Weight on Okta and Underweight on Fortinet suggest Wells Fargo sees prices catching up to fundamentals rather than fundamentals justifying a bullish stance.

Earnings Snapshots: Okta and Fortinet Okta is the leading independent identity platform. In Q1 FY2027, Okta posted revenue of $765 million, up 11.2% year over year (YoY), with non-GAAP EPS of $0.91 and free cash flow of $271 million. Management is now positioning identity as the control plane for AI agents inside the enterprise.

SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now.

Meanwhile, Fortinet is the firewall market leader. In Q1 FY26, Fortinet delivered revenue of $1.85 billion, up 20.1% YoY, non-GAAP EPS of $0.82, and a record $1.01 billion in free cash flow, supported by a hardware refresh cycle and the FortiOS 8.0 launch.

Why the Move Matters Now The valuation backdrop is rich. Per Yahoo Finance as of July 20, Okta shares are up 76% year to date (YTD) with a TTM P/E ratio of 111x, while Fortinet shares are up 105% YTD with a TTM P/E ratio of 63x. The cybersecurity-sector peers look similar: Palo Alto Networks stock is up 95% YTD with a TTM P/E ratio of 312x, and CrowdStrike stock is up 75% YTD with TTM EPS of -$0.02, so no trailing P/E ratio applies.

Palo Alto Networks (NASDAQ:PANW) and CrowdStrike (NASDAQ:CRWD) are riding the same AI-driven demand wave, and both have shown accelerating platform consolidation among enterprise customers. That’s the sector thesis Wells Fargo is validating.

What It Means for Your Portfolio These are fully valued names. The Wells Fargo price target raises on Okta and Fortinet stock reflect sector momentum, and investors can approach these names with restraint. Thus, it makes sense to keep one’s position sizes modest.

For diversified exposure, the First Trust NASDAQ Cybersecurity ETF (NASDAQ:CIBR) holds all four names, with PANW at 8.46%, CRWD at 8.25%, FTNT at 7.4%, and OKTA at 2.7% of net assets. It isn’t leveraged, but single-sector concentration risk is real. All in all, position sizing is just as important as diversification in this fast-moving market sector.

Want Up To $1,000? SoFi Is Giving New Active Invest Users Free StockLooking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts.

From $0 commission trading to fractional shares and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus. 

Contact [email protected] for any questions or corrections.

An updated edition of the May 26, 2026 article.

Cybersecurity is no longer just an IT priority. It has become a business necessity. As companies move more workloads to the cloud and adopt artificial intelligence (AI), cybercriminals are becoming more sophisticated. Ransomware, phishing attacks and large-scale data breaches are now more frequent and far more expensive. A single successful attack can disrupt operations, damage a company's reputation and lead to significant financial losses.

This changing threat landscape is creating a massive opportunity for cybersecurity companies. According to Fortune Business Insights, the global cybersecurity market is expected to grow from $218.98 billion in 2025 to nearly $699.39 billion by 2034, reflecting a compound annual growth rate (CAGR) of 13.8%. Growth is being fueled by stricter regulations, rising digital transformation and the need for stronger protection across cloud environments and AI-powered applications. Leaders like Palo Alto Networks, Inc. (PANW - Free Report) , CrowdStrike Holdings, Inc. (CRWD - Free Report) and Zscaler, Inc. (ZS - Free Report) are already monetizing this demand with platforms built for modern threats.

AI is becoming the biggest catalyst for the cybersecurity industry. Traditional security tools largely react after an attack has occurred. AI changes that by helping companies identify suspicious activity, detect threats earlier and automate responses before serious damage is done. As cyberattacks become faster and more complex, AI-powered security is quickly becoming a must-have rather than an optional feature.

Companies like Cisco Systems, Inc. (CSCO - Free Report) , Fortinet, Inc. (FTNT - Free Report) , Cloudflare, Inc. (NET - Free Report) and Okta, Inc. (OKTA - Free Report) are well-positioned to benefit from this trend. Each company is embedding AI across its security platform to improve threat detection, simplify security management and deliver better outcomes for customers. These investments not only strengthen their competitive positions but also open new long-term growth opportunities.

Our Cybersecurity Screen makes it easy to identify high-potential stocks at any given time, just like the four mentioned above. Leveraging advanced tools, our thematic screens identify companies shaping the future, making it easier to capitalize on emerging trends.

Ready to uncover more transformative thematic investment ideas? Explore 37 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.

Cisco Systems offers cybersecurity products and services that prevent unauthorized access to system resources and protect from worms, spam, viruses and other malware. The company has been integrating AI into its product portfolios across networking, security, collaboration and observability.

Strong demand for Cisco Systems’ products in developing AI infrastructure has been a game-changer for the company. In the third quarter of fiscal 2026, CSCO received $1.9 billion worth of AI infrastructure orders from web-scale customers, bringing the total year-to-date orders to $5.3 billion.

Data center switching orders continue to register solid double-digit year-over-year growth in the fiscal third quarter, implying strong demand. These orders are coming from some of the biggest players in cloud computing and reflect a growing demand for AI-optimized networks. Cisco Systems is expanding its AI portfolio for data centers with solutions like the Unified Nexus Dashboard, Cisco Intelligent Packet Flow, configurable AI PODs and 400G bidirectional (BiDi) optics.

As cyber threats become more sophisticated, CSCO’s AI-powered platform gives it a competitive edge. These innovations are likely to accelerate customer adoption and support strong long-term revenue growth for the company. Currently, Cisco Systems sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Fortinet provides networking and security solutions to enterprises, service providers and government entities across 100 countries. The company is using AI to make its cybersecurity platform faster, smarter and more automated.

FTNT has embedded AI across the Fortinet Security Fabric through its FortiAI platform, which helps security teams detect threats, automate incident response and simplify security operations using generative AI. This reduces response times and improves productivity for customers facing increasingly sophisticated cyberattacks.

Fortinet is also applying AI to enhance network security, secure access service edge (SASE) and security operations (SecOps) solutions. Its AI-powered threat intelligence, supported by FortiGuard Labs, analyzes billions of security events each day to identify emerging threats and deliver real-time protection. These capabilities help customers improve security while lowering operational complexity.

Fortinet's expanding AI portfolio is supporting demand from enterprises modernizing their security infrastructure. As organizations increasingly adopt AI while facing more advanced cyber threats, this Zacks Rank #1 company's integrated platform and AI-driven innovations position it to win larger enterprise deployments, drive recurring revenues and sustain long-term growth.

Cloudflare is a global web infrastructure and security company. The company is leveraging the AI boom to expand beyond networking and cybersecurity into AI infrastructure and developer services.

Cloudflare has introduced a broad suite of AI offerings, including Workers AI, Vectorize, AI Gateway and Durable Objects, enabling developers to build, deploy and scale AI applications directly on Cloudflare's global edge network. By running AI inference closer to end users, Cloudflare reduces latency, lowers costs and improves application performance.

The company is also using AI to strengthen its cybersecurity platform. Its security solutions rely on machine learning to detect malicious traffic, stop automated bot attacks and identify emerging threats in real time. As AI-driven cyberattacks become more sophisticated, these capabilities are becoming increasingly valuable for enterprise customers.

Cloudflare's AI investments are already contributing to customer growth, with enterprises adopting its platform for both AI application delivery and security. As AI workloads continue to expand globally, this Zacks Rank #2 (Buy) company's edge infrastructure and integrated platform position it to generate higher enterprise spending and sustain long-term revenue growth.

Okta is a cloud-based Identity and Access Management (IAM) solution provider. The company is using AI to enhance its identity security platform while helping enterprises adopt AI applications securely.

Okta has introduced AI-powered capabilities across its Identity Threat Protection and Identity Security Posture Management solutions to detect unusual login behavior, identify compromised accounts and automate risk-based access decisions in real time. These features improve security while reducing the burden on IT teams.

Okta is also enabling organizations to securely manage access to generative AI applications and AI agents through its Workforce Identity Cloud and Customer Identity Cloud platforms. As businesses deploy more AI tools, identity management is becoming increasingly critical, creating a new growth opportunity for the company.

With identity remaining at the center of enterprise security, this Zacks Rank #2 company’s AI initiatives strengthen customer retention, expand cross-selling opportunities and position the company to benefit from the growing adoption of AI-powered enterprise applications.

Okta, Inc. (OKTA) Discusses Technology Vision and Identity Security Strategy July 13, 2026 3:00 PM EDT

Company Participants

Dave Gennarelli - Senior Vice President of Investor Relations
Ely Kahn
Harish Peri - Senior VP & GM

Conference Call Participants

Eric Heath - KeyBanc Capital Markets Inc., Research Division

Presentation

Eric Heath
KeyBanc Capital Markets Inc., Research Division

So Ely, Harish, Dave, thanks for being here, Janice as well. I very much appreciate you all being here to hopefully get a technical session for people and go into a topic that I think is very interesting. So Ely, the Chief Product Officer; Harish, SVP and GM of AI Security. And then we all know Dave and Janice on the IR side of things. So I'm going to throw it over to Dave to hit the safe harbor, and then Ely and Harish have some prepared slides and topics to hit. So I'll throw it over to you, Dave.

Dave Gennarelli
Senior Vice President of Investor Relations

Great. Thanks, Eric, and thanks for hosting us today. Really appreciate it. And just Janice is going to throw the safe harbor up. You guys are all familiar with the safe harbor language, just a reminder of that. And just to remind you that today's conversation is really about the technology. We're not going to be taking financially related questions today.

So with that, I'll throw it over to Ely.

Ely Kahn

Thanks so much. And once again, my name is Ely Kahn, Chief Product Officer here at Okta. I've been here about almost 6 months, but been in cybersecurity my whole career, first inside the U.S. government, U.S. intelligence community, doing cybersecurity, then a startup called Sqrrl that was acquired by AWS, spent 4.5 years there building products. Most recently before Okta, I was Chief Product Officer of SentinelOne. And yes, excited to be here to talk a bit about

In the latest trading session, Okta (OKTA - Free Report) closed at $146.77, marking a -1.15% move from the previous day. This change lagged the S&P 500's 0.28% loss on the day. On the other hand, the Dow registered a loss of 1.09%, and the technology-centric Nasdaq increased by 0.2%.

Heading into today, shares of the cloud identity management company had gained 23.77% over the past month, outpacing the Computer and Technology sector's loss of 1.22% and the S&P 500's gain of 1.64%.

Analysts and investors alike will be keeping a close eye on the performance of Okta in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.96, marking a 5.49% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $792.14 million, up 8.81% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.83 per share and revenue of $3.2 billion, which would represent changes of +9.43% and +9.51%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Okta. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.72% higher. Okta presently features a Zacks Rank of #3 (Hold).

With respect to valuation, Okta is currently being traded at a Forward P/E ratio of 38.78. This represents a discount compared to its industry average Forward P/E of 50.32.

Meanwhile, OKTA's PEG ratio is currently 2.44. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Security was holding an average PEG ratio of 3.31 at yesterday's closing price.

The Security industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 169, finds itself in the bottom 32% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

© Yuichiro Chino / Moment via Getty Images

Shares of major cybersecurity names are rallying in Monday’s midday session. CrowdStrike Holdings (NASDAQ:CRWD | CRWD Price Prediction) stock is up 5% to $204 and change, leading the group higher. Palo Alto Networks (NASDAQ:PANW) shares are climbing 4% to $363, and Okta (NASDAQ:OKTA) stock is up 4% to $147.

The Amplify Cybersecurity ETF (NYSE ARCA:HACK) is also higher, with the ETF trading up 3% to $110 and change as buyers rotate into the cybersecurity sector. The moves cap a strong recent run for cybersecurity names heading into the summer.

The catalyst is a cluster of analyst upgrades from Scotiabank targeting identity and exposure management vendors. The note frames the group as core AI beneficiaries tied to rising cybersecurity spending across the enterprise stack.

Scotiabank Upgrade Sparks a Sector-Wide Bid Scotiabank moved Okta to Outperform from Sector Perform, attaching a $165 price target. That level sits well above the prior consensus target of $121, and it reframes Okta shares around agentic-AI identity demand rather than legacy workforce single sign-on growth.

The thesis pitches Okta and other threat-detection specialists as AI beneficiaries of rising cybersecurity spending as firms modernize their identity stack.

Okta CEO Todd McKinnon has repeatedly tied the identity opportunity to AI, stating “AI agents are rapidly becoming a new workforce inside every organization, creating a wave of identities that must be secured and governed alongside human users.” That framing aligns cleanly with the Scotiabank thesis and helps explain the bid for Okta shares today.

CrowdStrike and Palo Alto Ride the Read-Through Gains in shares of CrowdStrike and Palo Alto Networks reflect a positive read-through for the broader cybersecurity complex rather than direct upgrades, and traders often extend a sector call to the platform leaders when sentiment shifts.

The fundamental setup helps. CrowdStrike delivered Q1 FY27 revenue of $1.39 billion, up 26% year over year (YoY), with total ARR reaching $5.51 billion. Net new ARR came in at $255.8 million, up 32% YoY.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Palo Alto Networks didn't make the cut. Grab the names FREE today.

Palo Alto Networks posted Q3 FY26 revenue of $3 billion, up 31%, with Next-Generation Security ARR climbing 60% YoY to $8.1 billion. Both companies also raised full-year guidance on their most recent calls.

Management commentary reinforces the AI angle. Palo Alto CEO Nikesh Arora asserted that “customers turn to us to secure their AI deployments at scale.” CrowdStrike CEO George Kurtz called his company “AI security infrastructure, critical to successful AI adoption.”

The Bull and Bear Cases The bull case is straightforward. Durable, rising cybersecurity budgets, agentic-AI-driven identity workloads, and today’s cluster of upgrades all point to broadening demand across endpoint, network, identity, and exposure management vendors.

The bear case sits in the price. CrowdStrike stock is up 76% year to date (YTD), and Palo Alto Networks stock is up 97% YTD. The valuations look stretched, and sector ETFs along with these individual names can move sharply when momentum unwinds.

Analyst ratings and price targets remain opinions rather than guarantees. Investors interested in the theme should consider keeping their position sizes modest given how far the group has already run this year.

What to Watch Market watchers can watch for whether today’s gains hold into the close and whether other firms follow Scotiabank with additional upgrades on the smaller identity and exposure management names. Any follow-on commentary on CrowdStrike or Palo Alto Networks could shape the next leg for the group.

The next scheduled catalyst may come from the coming earnings cycle, where guidance revisions from CrowdStrike, Palo Alto, and Okta could either confirm the AI-security spending narrative or take some air out of a group that has already priced in a lot of good news.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Palo Alto Networks didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Shares of Palo Alto Networks (NASDAQ:PANW | PANW Price Prediction) are up 9% to $331.91 at midday Monday, leading a sharp rally across cybersecurity platform leaders. CrowdStrike (NASDAQ:CRWD) stock is up 7% to $747.84, and Okta (NASDAQ:OKTA) stock is up 5% to $130.23.

The synchronized move caps a powerful run for the group. Year to date (YTD), Palo Alto Networks stock is up 79%, CrowdStrike stock is up 59%, and Okta stock is up 51%, dwarfing the NASDAQ 100, which is up 16% YTD.

Today’s move in Palo Alto Networks, CrowdStrike, and Okta stems from a broad risk-on tone in software. A fresh industry forecast circulating through investor desks adds a sector tailwind on top, but it leaves the bigger question intact: can earnings growth justify these multiples?

Broad Tech Rally and a Supportive Sector Backdrop Cybersecurity names sit among the highest-beta corners of software, so they tend to lead on up days. With the NASDAQ 100 reclaiming ground after a recent pullback, money is rotating back into the platform leaders, and PANW, CRWD, and OKTA are absorbing an outsized share of the bid.

The backdrop got a lift for Palo Alto Networks, CrowdStrike, and Okta from a UBS note published after Friday’s close. UBS estimated that the global security and safety market would reach $974 billion in 2026 and expand to $1.19 trillion by 2029, with cybersecurity the largest growth driver. UBS also sees the global cybersecurity market growing 13% this year to $240 billion, framing the category as a relatively defensive, resilient-spend area within tech.

The UBS report didn’t assign new ratings or price targets to PANW, CRWD, or OKTA, so it functions as a sector sentiment tailwind for investor positioning today. Recent earnings reinforce the picture: Palo Alto Networks delivered Q3 FY2026 revenue growth of 31% year over year, CrowdStrike posted Q1 FY2027 revenue growth of 26%, and Okta reported Q1 FY2027 revenue growth of 11%, with each company beating consensus on both lines.

Management commentary across the three companies also frames AI as a spending catalyst. Palo Alto Networks CEO Nikesh Arora called the latest quarter a “standout” driven by “accelerating organic bookings growth as customers turn to us to secure their AI deployments at scale.” Meanwhile, CrowdStrike CEO George Kurtz described his company as “AI security infrastructure, critical to successful AI adoption.”

Valuations Leave Little Margin for Error The group trades at premium multiples that leave little room for disappointment. Per Yahoo Finance, Palo Alto Networks trades at a trailing P/E ratio of 283.51x, and Okta carries a trailing P/E ratio of 94.46x.

CrowdStrike has no trailing P/E ratio because the company remains unprofitable on a TTM basis, with trailing EPS of -$0.14, according to Yahoo Finance. Forward multiples remain rich as well, with CrowdStrike’s forward P/E ratio at 143x and Palo Alto Networks’ at 75x.

The combined market caps are massive. Palo Alto Networks now carries a market cap of $268 billion, CrowdStrike sits at $190 billion, and Okta clears $22 billion, so further gains require ever-larger dollar inflows to keep the multiples climbing.

After massive YTD runs, the question for shareholders of Palo Alto Networks, CrowdStrike, and Okta is whether earnings growth can compound fast enough to grow into these multiples. High-beta, high-multiple names can also fall hard if tech sentiment reverses, and the recent NASDAQ 100 drawdown is a reminder of that asymmetry.

What to Watch Next The next concrete event is CrowdStrike’s 4-for-1 stock split, with split-adjusted trading set to begin July 2. Splits are mechanical events, but they can amplify retail demand and short-term volatility in the days around the effective date.

Watch for whether today’s gains hold into the close in PANW, CRWD, and OKTA, and whether analyst desks respond to the UBS forecast with refreshed estimates or price targets. Holders may want to keep an eye on sector breadth too, since a narrowing rally could signal that today’s enthusiasm is fading.

The takeaway is a balanced setup. Secular demand for cybersecurity and platformization tailwinds for Palo Alto Networks, CrowdStrike, and Okta are visible, though valuations leave little margin for error. Investors should consider risk management around position sizing rather than chase the move higher into strength.

Okta (OKTA - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this cloud identity management company have returned +25.7% over the past month versus the Zacks S&P 500 composite's +0.1% change. The Zacks Security industry, to which Okta belongs, has gained 4.5% over this period. Now the key question is: Where could the stock be headed in the near term?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Okta is expected to post earnings of $0.96 per share for the current quarter, representing a year-over-year change of +5.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +8.6%.

For the current fiscal year, the consensus earnings estimate of $3.83 points to a change of +9.4% from the prior year. Over the last 30 days, this estimate has changed +8.1%.

For the next fiscal year, the consensus earnings estimate of $4.28 indicates a change of +11.8% from what Okta is expected to report a year ago. Over the past month, the estimate has changed +1.4%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Okta.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Okta, the consensus sales estimate for the current quarter of $792.14 million indicates a year-over-year change of +8.8%. For the current and next fiscal years, $3.2 billion and $3.5 billion estimates indicate +9.5% and +9.6% changes, respectively.

Last Reported Results and Surprise HistoryOkta reported revenues of $765 million in the last reported quarter, representing a year-over-year change of +11.2%. EPS of $0.91 for the same period compares with $0.86 a year ago.

Compared to the Zacks Consensus Estimate of $751.34 million, the reported revenues represent a surprise of +1.82%. The EPS surprise was +7.06%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Okta is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Okta. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Key Takeaways Okta shares are up 36.6% YTD, helped by strong Q1 bookings, revenue growth and upbeat FY27 guidance.Newer products made up about 25% of Q1 bookings and drove roughly 40% ACV uplift when attached.AI-agent security is building a major pipeline, but competition and minimal AI revenue support a hold view. Okta (OKTA - Free Report) shares have appreciated 36.6% year to date (YTD), outperforming the broader Zacks Computer & Technology sector’s return of 16.5%. Following the first-quarter fiscal 2027 results on May 28, OKTA shares have jumped 24.7%, reflecting improving fundamentals and emerging AI-driven growth opportunities. The first-quarter results showed strong bookings, 11% year-over-year revenue growth, a rise in net retention to 107%, increasing sales productivity, low account-executive attrition and strong pipeline generation. OKTA also provided strong top-line growth guidance, which bodes well for investors. However, is this enough for the investors to jump into the stock? Let’s find out.

Okta Rides on Strong Demand for Newer SolutionsOkta’s newer products — especially Identity Governance (IGA), Privileged Access and AI-related offerings — are driving larger transactions and deeper customer penetration. Management disclosed that new products represented roughly 25% of fiscal first quarter bookings and generated around a 40% Annual Contract Value (ACV) uplift when attached to deals. Governance has also evolved into a true “land” product capable of displacing incumbents, while large enterprises continue consolidating more identity functions onto the Okta platform. This platformization story is boosting customer lifetime value, improving retention and creating a more durable growth profile than investors previously assumed. Customers with more than $100K in ACV increased 6% year over year to 5,180 in the fiscal first quarter.

Management repeatedly emphasized that AI-agent security is generating the largest pipeline build for any new product in Okta’s history, with customers urgently seeking solutions to discover, govern and authorize AI agents. Okta’s new AI products are already associated with materially larger deal sizes, while management believes enterprises will eventually have more AI identities than human identities. This creates a substantial new addressable market expansion beyond traditional workforce identity management and positions Okta as a foundational beneficiary of enterprise AI adoption.

OKTA benefits from its installed base of more than 20,000 customers, broad identity portfolio, and vendor-neutral position across AI ecosystems. Okta’s expanding partner base that now includes OpenAI, Anthropic, Google, Amazon, ServiceNow and others. This is allowing customers to secure agents across multiple environments. OKTA’s management argues that enterprises increasingly want an independent identity layer rather than being locked into a specific AI platform. Combined with growing partner-sourced business, rising traction in large enterprises and expanding integration networks, investors are increasingly viewing Okta as a strategic infrastructure provider.

These factors are expected to help OKTA shares appreciate. The company is facing stiff competition from the likes of Microsoft (MSFT - Free Report) , Palo Alto Networks (PANW - Free Report) and Cisco Systems (CSCO - Free Report) . YTD, Cisco and Palo Alto Networks have returned 56% and 54.5%, respectively, while Microsoft has dropped 17.4%.

OKTA Stock’s Price Performance
Image Source: Zacks Investment Research

OKTA Offers Positive FY27 GuidanceFor fiscal 2027, OKTA expects revenues between $3.185 billion and $3.205 billion, indicating 9-10% growth from the figure reported in fiscal 2026. Okta expects fiscal 2027 non-GAAP earnings between $3.79 and $3.87 per share.

The Zacks Consensus Estimate for Okta’s earnings has increased by four cents to $3.83 per share over the past 30 days. The earnings estimate suggests 9.4% growth over the figure reported in fiscal 2026. The consensus estimate for revenues is currently pegged at $3.20 billion, suggesting 9.5% growth from the figure reported in fiscal 2026.

Okta Suffers From Stiff CompetitionOkta is facing stiff competition from Microsoft, which management has identified as its primary competitor, particularly through bundled Entra identity capabilities included in Microsoft’s broader software packages. Cost-conscious customers who only need basic identity functionality may choose Microsoft’s bundled offering rather than pay separately for Okta’s solutions. At the same time, larger cybersecurity vendors such as Palo Alto Networks, CyberArk and others are expanding their identity capabilities, increasing competitive pressure as identity security becomes more strategic.

Okta needs to monetize its expanding AI offerings. Revenue contribution from AI Agents and Auth0 for AI Agents was minimal in the first quarter of fiscal 2027, and are not a meaningful driver of current guidance. Okta is initially using simplified seat-based pricing because enterprises are unsure how to budget for AI-agent consumption, which can be a headwind for the company’s monetization strategy.

Here’s Why OKTA is a Hold NowOKTA’s innovative portfolio and rich partner base are helping the company win clients. However, these drivers are not enough to justify a premium valuation as suggested by the Value Score of D.

In terms of forward 12-month price/sales (P/S), Okta is trading at 6.2X, higher than the median of 5.06X. However, OKTA is cheaper than Microsoft, Cisco and Palo Alto Networks, shares of which are trading at 7.82X, 7.05X and 17.27X, respectively.

OKTA Stock’s Valuation
Image Source: Zacks Investment Research

Okta currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable point to start accumulating the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways OKTA subscription revenues rise 11% to $750M as total revenues grows 11% to $765M with 20K customers.Large enterprises drive OKTA growth as 85% of ACV, up from 80%, with 100K ACV customers up 6% YoY.New OKTA products drive ~25% of bookings, led by Identity Governance and Privileged Access strength. Okta (OKTA - Free Report) is benefiting from strong subscription revenue growth, which has become the key growth driver of the company’s financial performance. For the first quarter of fiscal 2027, revenues increased 11% year over year to $765 million. The uptick can be attributed to steady subscription momentum, as subscription revenues increased 11% year over year to $750 million and continued to account for the vast majority of the top line.

This growth is largely attributed to the durability of Okta’s core business, with both the Okta and Auth0 platforms contributing to steady momentum across a diverse and expanding customer base. In the first quarter of fiscal 2027, Okta reported more than 20,000 total customers and 5,180 customers now spending more than $100,000 annually.

The company’s expanding product lineup plays an important role in driving growth. Newer offerings accounted for nearly 25% of first-quarter bookings, reflecting rising customer interest in solutions beyond basic identity management. Identity Governance remained the strongest-performing new product, while Privileged Access delivered encouraging results. Customers are increasingly turning to Okta for a broader set of identity and security needs.

A key driver behind Okta’s subscription growth is its ability to land and expand within large enterprises. Large enterprises now represent 85% of Okta’s annual contract value, up from 80%, reflecting the company’s successful focus on high-value clients. The number of customers with annual contract values exceeding $100,000 grew 6% year over year, highlighting Okta’s success in upselling and cross-selling its broadening portfolio of identity products.

Okta remains confident about its prospects. The company expects revenues to grow 9-10% in fiscal 2027, supported by continued adoption of newer products, expanding enterprise relationships and stronger partner contributions. In addition, management highlighted significant interest in its AI-related offerings, which could create another avenue for long-term subscription revenue growth.

OKTA Faces Tough Competition in the Security SpaceIn the security domain, Okta is facing stiff competition from the likes of SentinelOne (S - Free Report) and Palo Alto Networks (PANW - Free Report) .

While OKTA offers cloud-based identity solutions, SentinelOne focuses on endpoint security, cloud security and threat detection, through its Singularity Platform, which leverages a unified security data lake and Purple AI, its Generative AI engine. Singularity, a complete AI-native platform, benefits from SentinelOne’s AI and automation-driven approach.

Palo Alto Networks’ broad cybersecurity platform and platformization strategy continue to drive growth across its business. The company remains the fastest-growing provider in the SASE market. SASE ARR reaching $1.6 billion in the third fiscal quarter of 2026, up 40% year over year, fueled by strong customer demand for unified security across hybrid workforces and AI applications. The company is also benefiting from increasing adoption of AI security, network security and platform-based solutions as enterprises expand AI deployments and seek consolidated cybersecurity architectures.

OKTA’s Share Price Performance, Valuation & EstimatesOkta shares have appreciated 35.6% in the year-to-date period, outperforming the broader Zacks Computer and Technology sector's 16.5% gain but underperforming the Zacks Security industry’s 41.9% growth.

                                            OKTA Stock’s Price Performance
Image Source: Zacks Investment Research

The Okta stock is currently undervalued, as suggested by a Value Score of D. In terms of forward 12-month Price/Sales, Okta is trading at a ratio of 6.11X, slightly lower than the broader Zacks Computer and Technology sector’s 6.54X.

                                                              OKTA Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for fiscal 2027 earnings is pegged at $3.83 per share, up 2.4% over the past 30 days, suggesting 1.1% growth from the fiscal 2026 reported figure.  

Okta currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.   

Okta stock is at critical resistance. Why is OKTA stock breaking out? Q1 Results Land Well Ahead Of ExpectationsOkta's latest quarter came in stronger than Wall Street anticipated. The company posted earnings of 91 cents per share, comfortably above the consensus estimate of 85 cents. Revenue reached $765 million, topping the Street's $751.88 million forecast.

The subscription backlog, or RPO, climbed to $4.72 billion, a 16% increase from last year. The near‑term portion of that backlog, known as cRPO, rose 12% to nearly $2.50 billion. Non‑GAAP operating income came in at $191 million, representing 25% of total revenue, showing meaningful operating leverage.

Guidance Moves Higher And Analysts RespondThe company also raised its full‑year outlook, lifting its fiscal 2027 adjusted EPS forecast to a range of $3.79 to $3.87. Revenue expectations were increased as well, now roughly projected between $3.19 billion and $3.21 billion.

Analysts responded quickly. BTIG's Gray Powell bumped his price target from $105 to $119, while Needham's Mike Cikos raised his from $90 to $120. Both firms reiterated Buy ratings, signaling confidence that Okta's execution and updated guidance justify a higher valuation.

The Technical PictureFor momentum, MACD is the cleaner read right now: it's above its signal line and the histogram is positive, which points to improving upside pressure versus the prior downswing. In plain terms, when MACD is above its signal line, it suggests buyers are gaining control and pullbacks may be getting bought faster than they were before.

Key Support: $95.50 — a nearby level where buyers previously stepped in, and a reasonable "line in the sand" if the breakout starts to fade. OKTA Shares Are SoaringOKTA Price Action: Okta shares were up 25.88% at $119.23 at the time of publication on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro.

Image: IgorGolovniov/Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

The company reported better-than-expected earnings but analysts are focused on the AI product pipeline.

The software identity provider posted calculated remaining performance obligations (cRPO) growth of 12% year-over-year to $2.499 billion. The company also raised its fiscal 2027 revenue outlook to $3.185 billion to $3.205 billion, modestly above the consensus estimate of $3.184 billion.

AI Agents Spark’ Record Pipeline’Wall Street analysts noted that while Okta’s newly launched AI security solutions are not yet major revenue contributors, they are driving unprecedented customer interest.

In a note issued Friday, Gray Powell of BTIG highlighted management’s commentary regarding the opportunity to secure AI agents, noting that the product’s pipeline is already” ‘bigger than anything we’ve ever seen.'” Powell reiterated a Buy rating on Okta and lifted the price forecast from $105 to $119.

RBC Capital Markets’ Matthew Hedberg echoed this bullish sentiment, stating, “Early traction with agentic security remains encouraging and could represent a source of upside as we believe it’s immaterial in guidance.” Hedberg maintained an Outperform rating and boosted the price forecast to $122.

Go-To-Market Specialization Yields ResultsAnalysts pointed to structural sales changes implemented in early fiscal 2026—which split operations into dedicated Okta sellers for security/IT and Auth0 sellers for developers—as a core driver of execution.

According to a report by Needham, the company “continues to benefit from go-to-market specialization implemented at the start of last year, which has resulted in more consistent execution; improving sales productivity; strong pipeline build; and lower Account Executive attrition.” Needham maintained its Buy rating and raised its price forecast from $90 to $120.

Emerging Product Portfolio Scales UpGuggenheim Securities emphasized that Okta’s Net Retention Rate (NRR) ticked upward sequentially from 106% to 107%, signaling strong cross-selling execution for Okta Identity Governance (OIG) and Okta Privileged Access (OPA).

Guggenheim analysts John DiFucci and Lawrence Vensko observed, “the current opportunity to cross-sell OIG and OPA and other emerging products into the customer base seems to be playing out.” The firm reiterated its Buy rating with a $138 price forecast, calling the company “a grossly undervalued asset.”

RBC Capital Markets detailed that the new product portfolio accounted for roughly 25% of first-quarter bookings, introducing a “~40% uplift when a new product is included in a deal.”

Wall Street Shifts Price Forecasts HigherA broad cohort of financial institutions adjusted their valuation models upwards following the Friday recap. Among the major updates:

OKTA Price Action: Okta shares were up 27.98% at $121.22 at the time of publication on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

The "SaaSpocalypse" may not be over. But for now at least, fears of software's demise have cooled.

Software stocks soared this week, driven by strong results from Snowflake and Okta, signaling that some companies are navigating their way through artificial intelligence disruption better than Wall Street expected.

The iShares Expanded Tech-Software exchange-traded fund rose 8% this week and closed May up 21%, the best monthly performance for the ETF since October 2001. Back then it was a brief rebound during the dot-com bust, while the current rally comes as concerns about the impact of AI ripple across the sector.

Software names have been hit particularly hard over the past year due to the boom in so-called vibe coding, with users able to now build apps and websites in minutes thanks to offerings from Anthropic, OpenAI and others.

With this month's rally, the iShares software ETF is only down 3.8% for the year, still badly trailing the Nasdaq, which has gained 18% in 2026.

watch now

Data platform provider Snowflake was a big driver this week, logging its best day ever on Thursday and gaining nearly 50% in the four trading days following the holiday on Monday. The company announced a $6 billion cloud and chip deal with Amazon and raised guidance as customers gravitate toward more AI tools.

"We're also seeing customers deploy and scale workloads at a faster pace," CEO Sridhar Ramaswamy told analysts on the company's earnings call.

Analysts at Argus Research called Snowflake a "picks and shovels" play on generative AI and lifted their price target to $300 from $250. The stock closed Friday at $255.55 and is now up 17% for the year.

"We think Snowflake may actually be a beneficiary of GenAI development as enterprises increasingly need to unify and harmonize data, Snowflake's core business, in order to exploit the benefits of GenAI," the analysts wrote in a report after earnings.

Okta was another big winner with investors, gaining a record 30% on Friday. The company reported better-than-expected results, and said the shift to agentic AI is forcing businesses to invest in identity security tools and scale defenses against a wave of bot armies.

"AI products are going to take longer, but every organization is going to build and deploy agents," Okta CEO Todd McKinnon told CNBC. "It's fundamental infrastructure that's going to be required over the next few years."

Elsewhere in the software space, Atlassian climbed 26% for the week and ServiceNow surged over 20%, while Shopify, Workday and Asana each gained at least 14%.

Among the software giants that are also selling cloud infrastructure, Oracle jumped 16% and Microsoft rose almost 8%. However, Microsoft is still down almost 7% for the year, the worst performance among tech's megacaps.

watch now

Okta (OKTA - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this cloud identity management company have returned +62.7%, compared to the Zacks S&P 500 composite's +6.3% change. During this period, the Zacks Security industry, which Okta falls in, has gained 52%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Okta is expected to post earnings of $0.96 per share, indicating a change of +5.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.3% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $3.8 points to a change of +8.6% from the prior year. Over the last 30 days, this estimate has changed +0.4%.

For the next fiscal year, the consensus earnings estimate of $4.22 indicates a change of +11.2% from what Okta is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Okta.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Okta, the consensus sales estimate for the current quarter of $792.04 million indicates a year-over-year change of +8.8%. For the current and next fiscal years, $3.19 billion and $3.48 billion estimates indicate +9.3% and +8.9% changes, respectively.

Last Reported Results and Surprise HistoryOkta reported revenues of $765 million in the last reported quarter, representing a year-over-year change of +11.2%. EPS of $0.91 for the same period compares with $0.86 a year ago.

Compared to the Zacks Consensus Estimate of $751.34 million, the reported revenues represent a surprise of +1.82%. The EPS surprise was +7.06%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Okta is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Okta. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Okta (OKTA - Free Report) , which currently has a Momentum Style Score of A. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Okta currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for OKTA that show why this cloud identity management company shows promise as a solid momentum pick.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For OKTA, shares are up 33.64% over the past week while the Zacks Security industry is up 6.76% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 80.98% compares favorably with the industry's 31.74% performance as well.

While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Okta have increased 75.37% over the past quarter, and have gained 33.48% in the last year. On the other hand, the S&P 500 has only moved 10.8% and 30.05%, respectively.

Investors should also pay attention to OKTA's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. OKTA is currently averaging 4,231,550 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with OKTA.

Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost OKTA's consensus estimate, increasing from $3.79 to $3.80 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that OKTA is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Okta on your short list.

Okta, Inc. (OKTA) Presents at 2026 Evercore Global TMT Conference Transcript

Cybersecurity earnings delivered a sharp split this week, even as three major names all topped expectations and raised their outlooks. The difference came down to quality, guidance, and confidence in the AI opportunity.

One company delivered a clean quarter and showed clear signs of AI-driven momentum, sending shares higher. Two others sold off as investors focused on softer spots beneath the headline beats. Here are the key takeaways from the latest round of cybersecurity earnings.

The latest cybersecurity earnings reports show that investors are rewarding clean execution—and punishing anything less.

Get Okta alerts:

Okta Surges on a Clean Beat and AI Agent Identity MomentumOkta Today

$117.50 0.00 (0.00%)

As of 12:54 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$62.66▼

$142.35P/E Ratio85.27

Price Target$114.14

Identity and access management giant Okta NASDAQ: OKTA was the standout in this cybersecurity earnings cycle.

The day after Okta's fiscal Q1 2027 earnings report was released, the stock popped 30% and then climbed another 13% the next day, for a total two-day gain of nearly 48%.

The firm saw revenue grow by just over 11% year over year (YOY) to $765 million, handily beating estimates near $752 million.

Adjusted earnings per share (EPS) rose by 6% YOY to 91 cents. This was much better than analyst expectations of 85 cents, which implied a decline of 1% YOY.

Adding to the positives, Okta also raised the midpoints of both its full-year revenue and adjusted operating margin guidance. These figures each increased by 50 basis points to 9.5% YOY and 25.5%, respectively.

Notably, current remaining performance obligations (RPOs) rose 12% YOY, while total RPOs grew 16% YOY. Both figures ran ahead of revenue growth, pointing to building demand momentum.

Importantly, the company noted strong demand for its AI agent identity offerings, which was key to the stock’s rise. As companies deploy more AI agents, they need tools to verify, govern, and secure nonhuman users alongside employee identities. If Okta can become a preferred identity layer for AI agents, the company may gain a stronger role in enterprise cybersecurity budgets.

Okta, Inc. (OKTA) Price Chart for Friday, June, 12, 2026

Zscaler Sells Off as Guidance Raises Growth and Cash Flow QuestionsZscaler Today

$127.76 +1.65 (+1.31%)

As of 12:54 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$114.63▼

$336.99Price Target$214.33

On the flip side, zero-trust cloud security provider Zscaler NASDAQ: ZS was punished after earnings as investors looked past its beat-and-raise results and focused on concerns beneath the headline numbers.

Overall, the stock plummeted more than 31% after its fiscal Q3 2026 earnings report was released and did not see a substantial recovery in the following days.

This came despite Zscaler posting significant beats on both the top and bottom line. Revenue came in at over $850 million, rising by 25% YOY, and was well above estimates of $835 million. Adjusted EPS grew even more by 28% YOY to $1.08, solidly above analysts' expectations of $1.01.

The company’s guidance included both positives and negatives. The company raised its full-year revenue growth forecast to 24.6% to 24.7%, up from its prior view of 24%. However, management framed its growth outlook as cautious, given the recent departure of two top sales leaders

The bigger concerns came from profitability and future growth. Zscaler lowered its free cash flow margin outlook, with the midpoint falling from 26.75% to 23.1%. It also guided for 16% to 17% annual recurring revenue growth next fiscal year, a sharp slowdown from its current-year ARR growth expectation of 24%.

With the stock trading at more than 40x earnings heading into the report, investors had little patience for signs of margin pressure and slowing growth.

Despite Zscaler’s massive post-earnings drop, Wall Street analysts are pointing to a big-time recovery ahead. The MarketBeat consensus price target on Zscaler currently sits near $216, implying more than 65% upside in shares. However, targets did move down meaningfully after the report. The average of updated targets is approximately $193—still implying very strong upside of almost 50%. Introducing quality replacements for its lost sales leaders could help the company raise its growth forecasts in the future.

Zscaler, Inc. (ZS) Price Chart for Friday, June, 12, 2026

CrowdStrike Slips as a Strong Report Runs Into a High BarCrowdStrike Today

$685.75 -5.78 (-0.84%)

As of 12:54 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$342.72▼

$785.66Price Target$692.71

One of the biggest names in cybersecurity, CrowdStrike NASDAQ: CRWD, also tumbled after reporting its fiscal Q1 2027 report.

Overall, the stock took a 7% hit, despite CrowdStrike posting two beats and a raise.

However, when considering the extremely strong run CrowdStrike shares had going into the report, this drop was small. Just prior to the report, CrowdStrike shares were up more than 80% in Q2 2026.

Revenue grew by 26% YOY to $1.39 billion, moderately exceeding estimates of $1.36 billion. EPS rose by a whopping 51% YOY to $1.10, beating analyst estimates of $1.07.

CrowdStrike also increased its net new ARR growth guidance for its full fiscal year by a very significant 520 basis points to 27.7%. The company now expects net new ARR growth to accelerate compared to the prior year.

Furthermore, the company noted that Anthropic’s Mythos model has “created an inflection point around ARR for our business.” CrowdStrike is one of the few companies with access to Anthropic’s most advanced model. With early access, they are among the best-positioned companies to fight back against the highly advanced AI cyber threat potential that Mythos brought to the forefront. Notably, CrowdStrike says its AI detection and response pipeline rose by more than 250% in one quarter to more than $50 million.

CrowdStrike (CRWD) Price Chart for Friday, June, 12, 2026

Should You Invest $1,000 in Okta Right Now?Before you consider Okta, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Okta wasn't on the list.

While Okta currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Nuclear energy is entering a new growth cycle as rising power demand, expanding data centers, and renewed policy support bring the sector back into focus. After strong gains in recent years, the most impactful phase of nuclear investment may still be ahead. This report highlights seven nuclear energy stocks positioned across the value chain—combining near-term revenue with long-term upside as next-generation technologies scale. Click the link below to unlock the full list.

Get This Free Report

Okta (OKTA - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this cloud identity management company have returned +45%, compared to the Zacks S&P 500 composite's -0.2% change. During this period, the Zacks Security industry, which Okta falls in, has gained 25.6%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Okta is expected to post earnings of $0.96 per share, indicating a change of +5.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +8.6% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $3.83 points to a change of +9.4% from the prior year. Over the last 30 days, this estimate has changed +8.1%.

For the next fiscal year, the consensus earnings estimate of $4.28 indicates a change of +11.8% from what Okta is expected to report a year ago. Over the past month, the estimate has changed +1.4%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Okta is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Okta, the consensus sales estimate of $792.14 million for the current quarter points to a year-over-year change of +8.8%. The $3.2 billion and $3.5 billion estimates for the current and next fiscal years indicate changes of +9.5% and +9.6%, respectively.

Last Reported Results and Surprise HistoryOkta reported revenues of $765 million in the last reported quarter, representing a year-over-year change of +11.2%. EPS of $0.91 for the same period compares with $0.86 a year ago.

Compared to the Zacks Consensus Estimate of $751.34 million, the reported revenues represent a surprise of +1.82%. The EPS surprise was +7.06%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Okta is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Okta. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.