Latest news with #OKTA
Yahoo
18 hours ago
- Business
- Yahoo
Wall Street Analysts Think Okta (OKTA) Is a Good Investment: Is It?
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Okta (OKTA). Okta currently has an average brokerage recommendation (ABR) of 1.92, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 40 brokerage firms. An ABR of 1.92 approximates between Strong Buy and Buy. Of the 40 recommendations that derive the current ABR, 21 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 52.5% and 5% of all recommendations. Check price target & stock forecast for Okta here>>>While the ABR calls for buying Okta, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential. Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision. Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether. The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them. In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research. In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks. There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices. Looking at the earnings estimate revisions for Okta, the Zacks Consensus Estimate for the current year has increased 11.5% over the past month to $3.28. Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term. 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. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for Okta may serve as a useful guide for investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Okta, Inc. (OKTA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
3 Cybersecurity Stocks to Buy Now for Long-Term Opportunities
Cybersecurity encompasses comprehensive security measures designed to protect systems, networks and programs from digital attacks. These attacks often aim to access, alter, or destroy sensitive information, extort money from users through ransomware, or disrupt the integrity of normal business operations. The widespread adoption of artificial intelligence (AI), IoT devices, and increased digitization across both public and private sectors has heightened vulnerabilities and expanded attack surfaces, necessitating the development of advanced security solutions. This space focuses on companies that offer integrated protection against evolving security threats while simplifying IT security infrastructure. These firms provide solutions to safeguard applications, networks, and cloud computing environments. Their offerings include application-specific integrated circuits, hardware architecture, operating systems, and associated security and networking functions, ensuring robust defenses against cyberattacks. We recommend three cybersecurity stocks for long-term investment purposes to reap maximum benefits. These are CyberArk Software Ltd. CYBR, Okta Inc. OKTA and Qualys Inc. QLYS. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The chart below shows the price performance of our three picks in the past three months. Image Source: Zacks Investment Research Zacks Rank #1 CyberArk Software is benefiting from the rising demand for cybersecurity and privileged access security solutions due to the long list of data breaches and increasing digital transformation strategies. A strong presence across verticals, such as banking, healthcare, government and utilities, is safeguarding CYBR from the adverse effects of softening IT spending. CYBR's strategic mix shift toward software-as-a-service and subscription-based solutions is driving top-line growth. CyberArk is gaining customer accounts, which contributes to its revenues. The vast customer base presents the company with an opportunity to upsell products within its installed user base. Furthermore, in the last few quarters, CYBR has been able to close a significant number of seven-figure deals. The growing number of large deals in the revenue mix is helpful as it increases deferred revenues and visibility. Moreover, any product refresh brings in additional dollars as every enterprise attempts to keep its threat management infrastructure updated. These factors in turn support CYBR's top line. CyberArk Software has an expected revenue and earnings growth rate of 31.9% and 25.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.6% in the last 30 days. Zacks Rank #2 Okta operates as an identity partner in the United States and internationally. OKTA offers a suite of products and services used to manage and secure identities, such as Single Sign-On, which enables users to access applications in the cloud or on-premises from various also provides Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization. OKTA's Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, web applications, and data, while API Access Management enables organizations to secure APIs. Access Gateway enables organizations to extend Workforce Identity Cloud, and Okta Device Access enables end users to securely log in to devices with Okta credentials. OKTA has expected revenue and earnings growth rates of 9.4% and 16.4%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for current-year earnings has improved 2.5% over the last seven days. Zacks Rank #1 Qualys is benefiting from the increasing demand for cloud-based cybersecurity solutions amid growing cyber threats and digital transformation initiatives. With a diverse customer base that includes enterprises, SMBs and government entities, QLYS maintains a balanced customer mix, which keeps it resilient against fluctuations in IT spending. QLYS' continued innovation and focus on expanding product capabilities position it well to navigate market challenges and sustain long-term growth despite potential macroeconomic disruptions. A continuous increase in Vulnerability Management, Detection and Response to customer penetration is an upside. Qualys' strategic acquisitions are pivotal in driving its growth trajectory. Since its inception, the company has acquired seven companies, of which Blue Hexagon was acquired in November 2022. Blue Hexagon's AI/ML capabilities enhanced QLYS' threat detection and response solutions, bolstering its cybersecurity offerings. Qualys has expected revenue and earnings growth rates of 7.3% and 0.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.7% over the last seven days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Qualys, Inc. (QLYS) : Free Stock Analysis Report CyberArk Software Ltd. (CYBR) : Free Stock Analysis Report Okta, Inc. (OKTA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
3 days ago
- Business
- Yahoo
2 No-Brainer Artificial Intelligence (AI) Stocks to Buy With $450 in June 2025
Software stocks have outperformed hardware stocks year to date, and that trend will likely continue because investors are nervous about tariffs. Snowflake is a leader in database management systems, and the company has rolled out several artificial intelligence features during the last two years. Okta is a leader in identity and access management, and the company recently added an AI-powered threat protection product to its already-robust portfolio. 10 stocks we like better than Snowflake › Within the technology sector, software stocks have outperformed hardware stocks by 26 percentage points year to date. Software companies are more attractive in the current market environment (particularly those involved with artificial intelligence) because they are generally exempt from tariffs. Investors can lean into that trend with Snowflake (NYSE: SNOW) and Okta (NASDAQ: OKTA). Both stocks handily beat the broader software industry through the first five months of 2025, and most Wall Street analysts anticipated more upside in the next year. Among the 50 analysts that follow Snowflake, the median target price is $222 per share. That implies 8% upside from the current share price of $205. Among the 47 analysts that follow Okta, the median target price is $130 per share. That implies 26% upside from the current share price of $103. Investors with $450 to spend should consider spreading the money evenly across Snowflake and Okta. Here's why. Snowflake specializes in analytics. Its cloud platform lets customers unify and make sense of data, share and monetize datasets, and develop artificial intelligence (AI) models and data-driven applications. Consultancy Gartner recently recognized the company as a technology leader in database management systems. Snowflake has introduced numerous artificial intelligence features during the last two years. Cortex AI is a fully managed service (inclusive of a custom large language model called Arctic) that can understand data, summarize information, and answer questions in natural language. Snowflake has also added AI tools for anomaly detection, classification, and forecasting. Snowflake reported strong financial results in the first quarter of fiscal 2026, which ended in April. Total customers increased 18% to 11,578 and the average existing customer spent 24% more. In turn, revenue rose 26% to $1 billion, and non-GAAP net income jumped 71% to $0.24 per diluted share. The company also raised full-year guidance, such that revenue is projected to increase 25%. Looking ahead, Snowflake values its total addressable market at $342 billion by 2028. Wall Street expects adjusted earnings to grow at 35% annually through fiscal 2027, which ends in January 2027. That makes the current valuation of 222 times earnings seem absurd. But analysts have consistently underestimated the company. Snowflake topped the consensus earnings estimate by an average of 34% in the last six quarters. Admittedly, Snowflake stock would still be expensive today even if that trend continues, but I think long-term investors can buy a very small position right now and add more shares as better opportunities present themselves. Okta specializes in identity and access management (IAM) software. IAM is a cybersecurity framework that lets administrators set system permissions, so only specified users and devices can access applications and resources. Its platform leans on AI to authenticate users and (thanks to a recently released threat protection product) continuously assess risk. Gartner has ranked Okta as an industry leader for eight consecutive years. Importantly, Okta provides solutions for customer identity and workforce identity, and it supplements its core IAM solutions with privileged access management (PAM) and identity governance and administration (IGA) products. The former protects highly privileged (superuser) accounts and the latter simplifies compliance reporting and automates IAM workflows. Okta reported solid results in the first quarter of fiscal 2026, which ended in April, beating estimates on the top and bottom lines. Revenue rose 12% to $688 million and non-GAAP net income increased 32% to $0.86 per diluted share. But the stock plunged following the report because management chose not to raise full-year guidance, citing macroeconomic uncertainty. Looking ahead, Okta values its addressable market at $80 billion. Wall Street estimates earnings will increase at 10% annually through fiscal 2027, which ends in January 2027. That makes the current valuation of 33 times earnings look rather expensive, but I believe analysts are underestimating the company as they have in the past. Okta beat the consensus earnings estimate by an average 15% in the last six quarters. I believe that trend will continue. IAM spending is forecast to increase at 12.6% annually through 2030, which means Okta can beat the consensus earnings estimate if it merely keeps pace with the market. Investors should feel comfortable buying a small position in this stock right now. Before you buy stock in Snowflake, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Snowflake wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Okta and Snowflake. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy. 2 No-Brainer Artificial Intelligence (AI) Stocks to Buy With $450 in June 2025 was originally published by The Motley Fool
Yahoo
3 days ago
- Business
- Yahoo
2 No-Brainer Artificial Intelligence (AI) Stocks to Buy With $450 in June 2025
Software stocks have outperformed hardware stocks year to date, and that trend will likely continue because investors are nervous about tariffs. Snowflake is a leader in database management systems, and the company has rolled out several artificial intelligence features during the last two years. Okta is a leader in identity and access management, and the company recently added an AI-powered threat protection product to its already-robust portfolio. 10 stocks we like better than Snowflake › Within the technology sector, software stocks have outperformed hardware stocks by 26 percentage points year to date. Software companies are more attractive in the current market environment (particularly those involved with artificial intelligence) because they are generally exempt from tariffs. Investors can lean into that trend with Snowflake (NYSE: SNOW) and Okta (NASDAQ: OKTA). Both stocks handily beat the broader software industry through the first five months of 2025, and most Wall Street analysts anticipated more upside in the next year. Among the 50 analysts that follow Snowflake, the median target price is $222 per share. That implies 8% upside from the current share price of $205. Among the 47 analysts that follow Okta, the median target price is $130 per share. That implies 26% upside from the current share price of $103. Investors with $450 to spend should consider spreading the money evenly across Snowflake and Okta. Here's why. Snowflake specializes in analytics. Its cloud platform lets customers unify and make sense of data, share and monetize datasets, and develop artificial intelligence (AI) models and data-driven applications. Consultancy Gartner recently recognized the company as a technology leader in database management systems. Snowflake has introduced numerous artificial intelligence features during the last two years. Cortex AI is a fully managed service (inclusive of a custom large language model called Arctic) that can understand data, summarize information, and answer questions in natural language. Snowflake has also added AI tools for anomaly detection, classification, and forecasting. Snowflake reported strong financial results in the first quarter of fiscal 2026, which ended in April. Total customers increased 18% to 11,578 and the average existing customer spent 24% more. In turn, revenue rose 26% to $1 billion, and non-GAAP net income jumped 71% to $0.24 per diluted share. The company also raised full-year guidance, such that revenue is projected to increase 25%. Looking ahead, Snowflake values its total addressable market at $342 billion by 2028. Wall Street expects adjusted earnings to grow at 35% annually through fiscal 2027, which ends in January 2027. That makes the current valuation of 222 times earnings seem absurd. But analysts have consistently underestimated the company. Snowflake topped the consensus earnings estimate by an average of 34% in the last six quarters. Admittedly, Snowflake stock would still be expensive today even if that trend continues, but I think long-term investors can buy a very small position right now and add more shares as better opportunities present themselves. Okta specializes in identity and access management (IAM) software. IAM is a cybersecurity framework that lets administrators set system permissions, so only specified users and devices can access applications and resources. Its platform leans on AI to authenticate users and (thanks to a recently released threat protection product) continuously assess risk. Gartner has ranked Okta as an industry leader for eight consecutive years. Importantly, Okta provides solutions for customer identity and workforce identity, and it supplements its core IAM solutions with privileged access management (PAM) and identity governance and administration (IGA) products. The former protects highly privileged (superuser) accounts and the latter simplifies compliance reporting and automates IAM workflows. Okta reported solid results in the first quarter of fiscal 2026, which ended in April, beating estimates on the top and bottom lines. Revenue rose 12% to $688 million and non-GAAP net income increased 32% to $0.86 per diluted share. But the stock plunged following the report because management chose not to raise full-year guidance, citing macroeconomic uncertainty. Looking ahead, Okta values its addressable market at $80 billion. Wall Street estimates earnings will increase at 10% annually through fiscal 2027, which ends in January 2027. That makes the current valuation of 33 times earnings look rather expensive, but I believe analysts are underestimating the company as they have in the past. Okta beat the consensus earnings estimate by an average 15% in the last six quarters. I believe that trend will continue. IAM spending is forecast to increase at 12.6% annually through 2030, which means Okta can beat the consensus earnings estimate if it merely keeps pace with the market. Investors should feel comfortable buying a small position in this stock right now. Before you buy stock in Snowflake, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Snowflake wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Okta and Snowflake. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy. 2 No-Brainer Artificial Intelligence (AI) Stocks to Buy With $450 in June 2025 was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Entrepreneur
4 days ago
- Business
- Entrepreneur
Buy The Dip in Okta, There's Nothing Wrong With the Outlook
Cybersecurity stock OKTA fell more than 15% following its Q1 release, but investors should cheer while they back up the truck to load up on shares. This story originally appeared on MarketBeat [content-module:CompanyOverview|NASDAQ:OKTA] You would think that Okta's (NASDAQ: OKTA) FQ1 earnings release was weaker than expected and compounded by poor guidance, the way its stock price fell after its release. Down more than 15% for the week, the only thing wrong with the report is a hint of caution in the full-year guidance. The full-year guidance was only reaffirmed, despite a solid Q1 performance and hot guidance for Q2. The outlook assumes slowing growth, which is offset by outperformance in Q1, momentum in the underlying cybersecurity business, and a high likelihood of increasing as the year progresses. There were some negative responses from analysts, but the takeaway from the activity is nothing but bullish. The negative revisions have reduced the high-end potential but are mainly to above-consensus price points and are offset by a higher number of price target increases. The net result is that the consensus price target is rising, up 5% in May and 16% year-over-year (YOY) at the start of June, a bullish trend compounded by increasing coverage and firming sentiment. The consensus sentiment for this stock is a Moderate Buy, up from last year's Hold. The single post-release downgrade tracked by MarketBeat, from Moderate Buy to Hold, cites valuation concerns that are not reflected in the revision trend. The bulk of analysts expect this stock to rise at least 20% from the May close, leading to a high-end range of $130 to $140, a nearly 40% gain when reached. Okta Growth Slows; Sustains a Double-Digit Pace in 2025 and Healthy Cash Flow Okta had a solid quarter in Q1. Although top-line growth slowed to 11.5% from last year's nearly 20% pace, it was sufficient to outpace the consensus estimate by more than 100 basis points. The strength was driven by growth in the core subscription business, which grew by 12% year over year. Margin news is also solid, with gross and operating margins widening compared to the prior year, driving a record profit. Critical details include the positive cash flow and $238.1 million in free cash flow, which accounts for approximately 34.6% of the revenue. The guidance is good despite the cautiousness in the full-year forecasts. The Q2 guide assumes another 10% YOY gain in revenue and may also be cautious due to the 14% increase in current remaining performance obligation (CRPO) and the 21% increase in RPO. Regardless, the full-year outlook also forecasts a roughly 10% gain, sufficient to sustain the company's cash flow, business growth trajectory, and fortress balance sheet. Highlights at the end of Q1 include a 2.5% increase in shareholder equity and net debt equal to less than 0.2x equity. Investors Should Expect Volatility for Okta Stock Price in June [content-module:Forecast|NASDAQ:OKTA] Analysts indicate Okta's stock price as higher, an outlook supported by institutional activity; however, short interest could be a problem. The short interest wasn't robust in the mid-May report, but it was elevated at nearly 5%, a long-term high, and had been rising over the preceding few months. With this in play, investors can expect to see short interest rise again in the following report and potentially remain elevated until later in the year. The catalyst for short-covering will be upcoming earnings releases. The price action in OKTA stock is ugly. The market's 15% decline confirms resistance at a critical level, but it may have already priced in the weakness. At $103, OKTA is still above the crucial support target near a cluster of moving averages that includes the 150-day EMA and the long-term 150-week EMA. Assuming the market remains above that level, the rebound may begin quickly as the market reversal that began last year gains momentum. If not, this market could fall to $90 or lower before rebounding. Before you make your next trade, 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. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now... See The Five Stocks Here
