Latest news with #Okta
Yahoo
a day ago
- Business
- Yahoo
AVGO vs. OKTA: Which Enterprise Security Software Stock is a Buy?
Broadcom AVGO and Okta OKTA are key providers of security software solutions for enterprises. AVGO offers Endpoint Security (Symantec and Carbon Black), Network Security, Information Security, Application Security (Carbon Black) and Identity Security solutions. Meanwhile, OKTA offers cloud-based identity solutions that allow customers to integrate with nearly any application, service or cloud that they choose through its secure, reliable and scalable platforms: Okta Platform and Auth0 to Gartner's latest data, enterprise spending on cybersecurity software and network security will grow 14% in 2025 to $118.5 billion, driven by strong demand for Generative AI (Gen AI) and cloud adoption. IDC expects global cybersecurity spending to grow 12.2% year over year in 2025, driven by increasing complexity and frequency of cyberattacks due to growing deployment of Gen AI and AI, with spending on security software to grow 14.4% year over year. The bullish projections offer significant growth opportunities for both Broadcom and companies are benefiting from strong demand for AI infrastructure, data center build-outs and an increasing threat landscape. Shares of Broadcom and Okta have appreciated 22.2% and 21.1% year to date, respectively. AVGO and OKTA Stock's Performance Image Source: Zacks Investment Research So, Broadcom or Okta, which is leading the charge? Let's find out. AVGO Rides on Strong Infrastructure Portfolio Broadcom's security offerings are a part of its broader Infrastructure Software solution that accounted for 44% of revenues in the second quarter of fiscal 2025. Infrastructure software revenues jumped 25% year over year to $6.6 billion, bolstered by the successful conversion of enterprise customers to the full VMware Cloud Foundation software stack subscription. AVGO expects infrastructure software revenues to be approximately $6.7 billion, up 16% year over year, in the third quarter of fiscal focus on delivering AI-powered, proactive security to stay ahead of evolving cyber threats has been noteworthy. In March, AVGO introduced updates to VMware vDefend, improving security planning, lifecycle management, and scalability for VMware Cloud Foundation with new tools like the Security Segmentation Assessment and Report, optimized micro-segmentation, and advanced Network Detection and Response, all aimed at improving threat prevention and operational efficiency. In April, Broadcom introduced Incident Prediction, which extends the security feature of Adaptive Protection, a unique capability of Symantec Endpoint Security Complete (SES-C).Apart from Infrastructure solutions, strong demand for Broadcom's application-specific integrated chips (ASICs), designed to support AI and machine learning and make these tasks more efficient, aids top-line growth. Custom AI accelerators (XPUs), which are a type of ASICs, are necessary to train Gen AI models, and they require complex integration of compute, memory, and I/O capabilities to achieve the necessary performance at lower power consumption and cost. Okta Benefits From Innovative Portfolio Okta's offerings include Okta AI, a suite of AI-powered capabilities embedded across several products, which empowers organizations to harness AI to build better experiences and protect against cyberattacks. The company benefits from strong demand for its new products, including Identity Governance, Privileged Access, Device Access, Fine Grained Authorization, Identity Security Posture Management, and Identity Threat Protection with Okta is expanding its security portfolio with the launch of a new protocol, Cross App Access, which helps in securing AI agents. The company is working with ISVs in launching Cross App Access that will enable ISVs' enterprise customers to better connect their AI tools to other apps and data. End users ultimately benefit as the latest protocol removes repetitive authorization consent screens and manages agent access for better security and company's focus on protecting non-human identities (NHIs) and developers building secure agents is noteworthy. NHIs include service accounts, shared accounts, machines and tokens, and often operate outside traditional identity governance frameworks and can leave organizations vulnerable to security risks. Identity Security Posture Management and Okta Privileged Access help in solving the vulnerabilities related to NHIs. AVGO's Earnings Estimate Revision Positive, OKTA's Steady The Zacks Consensus Estimate for AVGO's fiscal 2025 earnings is pegged at $6.64 per share, up by a penny over the past 30 days, indicating a 36.34% increase over fiscal 2024's reported figure. Broadcom Inc. Price and Consensus Broadcom Inc. price-consensus-chart | Broadcom Inc. Quote The consensus mark for Okta's fiscal 2026 earnings has been steady $3.28 per share over the past 30 days, suggesting 16.73% growth over fiscal 2025. Okta, Inc. Price and Consensus Okta, Inc. price-consensus-chart | Okta, Inc. Quote Both AVGO's and Okta's earnings beat the Zacks Consensus Estimate in all the trailing four quarters. OKTA's average surprise of 13.53% is significantly better than AVGO's surprise of 3.2%, reflecting a good quality of earnings beat on a consistent basis. Valuation: OKTA is Cheaper Than AVGO In terms of forward 12-month Price/Sales, Broadcom shares are trading at 18.55X, significantly higher than Okta's Okta and Broadcom are overvalued, as suggested by the Value Score of D and Value Score of F. OKTA and AVGO Valuation Image Source: Zacks Investment Research Okta is a Better Buy Than Broadcom Broadcom's expanding AI portfolio, along with a rich partner base, is a key catalyst. AVGO expects third-quarter fiscal 2025 AI revenues to jump 60% year over year to $5.1 billion on these factors. However, AVGO's guidance reflects sluggishness in server storage, wireless and industrial businesses. Gross margin is expected to decline roughly 130 basis points sequentially, reflecting a higher mix of XPUs with AI Okta's innovative portfolio, along with a strong partner base, is noteworthy. The company has more than 7,000 integrations with cloud, mobile, and web applications and IT infrastructure providers as of April 30, 2025. OKTA exited first-quarter fiscal 2026 with roughly 20,000 customers and $4.084 billion in remaining performance obligations, reflecting strong growth prospects for subscription currently carries a Zacks Rank #2 (Buy), making it a better buy compared with Broadcom, which has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 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 Broadcom Inc. (AVGO) : Free Stock Analysis 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
4 days ago
- Business
- Yahoo
3 Software Stocks to Buy Now If You're Worried About Tariffs
April's 'Liberation Day' tariff scare wiped out trillions from the market, and some investors fear that a recent reescalation in tariff talks could trigger similar fallout. President Donald Trump recently extended the initial tariff pause to Aug. 1, however, the tariff announcements are already flowing. Investors are closely watching U.S.-China trade talks and Russia and its BRICS peers. New tariffs on copper recently, for instance, set the market in motion. More News from Barchart Is Palantir Stock a Buy Above $150? Warren Buffett's Berkshire Hathaway Earns $93,150 Every Hour from Coca-Cola Dividends Alone These Are the Highest Yielding Dividend Aristocrats Today (Entire List) Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! No matter how things shake out, one of the hottest corners of the market is mostly free from tariffs. According to Morgan Stanley analysts, tariffs 'don't matter' for software stocks. Here are three especially poised to win in the months ahead. Software Stock #1: Okta (OKTA) Okta (OKTA) is a software company specializing in identity and access management, helping corporate clients with secure user authentication. Momentum in this niche is unlikely to slow due to tariffs. Q1 revenue rose 12% year-over-year to $688 million, and subscription revenue hit $673 million. Free cash flow also jumped to $238 million, a 35% margin that dwarfs most hardware-oriented tech peers. Okta closed the quarter with $2.725 billion in cash and short-term investments and only modest debt. Management believes adjusted operating income will grow to between $710 million to $720 million this fiscal year. Things look very healthy here. The company turned profitable around a year ago and has successfully trimmed debt and increased cash while increasing both margins and revenue. OKTA stock is also down 30% from its three-year peak, so there's good upside ahead if management can maintain this trajectory. The mean price target of $123.92 implies 30% upside. Software Stock #2: Autodesk (ADSK) Autodesk (ADSK) is a company that provides a broad range of software products for engineering and design. Its design software is viewed as essential infrastructure, and canceling a software license that costs a few thousand dollars does nothing to dodge a tariff, so corporate clients keep renewing. Plus, Autodesk derives most of its revenue from the U.S. The company closed fiscal 2025 with record-high revenue of $6.13 billion, up 12%. That was followed up by 15% year-over-year growth in Q1 of its fiscal 2026. One other catalyst to watch? Autodesk stands to benefit from the onshoring trend, which could see its revenue growth accelerate. The mean analyst price target here is $339.58, implying 16% upside potential. That price target is likely to go up as analysts re-rate shares on renewed artificial intelligence optimism. For instance, Berenberg upgraded it in late June to a $365 price target, followed by DA Davidson upgrading from a 'Neutral' rating to a 'Buy,' with a $375 price target. Software Stock #3: CrowdStrike (CRWD) CrowdStrike (CRWD) stock is up 370% in the past five years, and the solid performance looks set to continue. Its cloud-native, subscription-heavy model makes it one of the cleanest ways to sidestep trade friction while still carving out double-digit growth. Roughly 95.5% of its $1.1 billion in fiscal Q1 revenue was derived from subscription dollars, and the marginal cost of adding one more customer is close to zero. Management guided Q2 to $1.145 billion to $1.152 billion and lifted the full-year outlook to $4.74 billion to $4.81 billion, or around 19% to 20% growth year-over-year. A broad tech sector decline would stunt margin gains, but CrowdStrike is still well-positioned to keep performing in the long run. The mean price target is $483.86, with price targets going up to $575. On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
5 days ago
- Business
- Yahoo
Okta (OKTA) Rises Higher Than Market: Key Facts
In the latest close session, Okta (OKTA) was up +1.13% at $92.10. This change outpaced the S&P 500's 0.54% gain on the day. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 0.74%. The stock of cloud identity management company has fallen by 8.01% in the past month, lagging the Computer and Technology sector's gain of 5.77% and the S&P 500's gain of 4.2%. Market participants will be closely following the financial results of Okta in its upcoming release. The company is predicted to post an EPS of $0.84, indicating a 16.67% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $711.04 million, indicating a 10.07% upward movement from the same quarter last year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.28 per share and revenue of $2.86 billion, indicating changes of +16.73% and +9.44%, respectively, compared to the previous year. It's also important for investors to be aware of any recent modifications to analyst estimates for Okta. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Okta possesses a Zacks Rank of #2 (Buy). In terms of valuation, Okta is currently trading at a Forward P/E ratio of 27.74. This denotes a discount relative to the industry average Forward P/E of 73.86. We can also see that OKTA currently has a PEG ratio of 1.64. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Security industry had an average PEG ratio of 3.11 as trading concluded yesterday. The Security industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 42, putting it in the top 18% of all 250+ industries. The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to follow all of these stock-moving metrics, and many more, on 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
Globe and Mail
6 days ago
- Business
- Globe and Mail
Okta Emphasizes AI-Driven Security: Can PANW Advance Its Lead?
Okta OKTA is stepping up its efforts in identity protection by putting artificial intelligence (AI) at the center of its security strategy. The company's Identity Threat Protection with Okta AI advanced features enables customers to detect and respond to identity-based threats in real time and prevent damage before it occurs. This AI approach supports Okta's growing portfolio, which includes Identity Governance, Privileged Access, Fine-Grained Authorization, Device Access and Identity Security Posture Management. The company is also expanding its security tools to protect non-human identities like service accounts and bots, which is a growing concern in today's cloud and AI environments. This all fits into a larger zero-trust model, where no user or device is trusted by default. A major boost to this AI-driven vision comes from Okta's new partnership with Palo Alto Networks PANW. This integration creates a unified security architecture that allows organizations to automate threat detection and response, secure application access across any device and streamline identity workflows without compromising security. Through this collaboration, Okta's threat detection is now integrated into Palo Alto's powerful security platforms — Cortex XSIAM and XDR — creating a comprehensive response to the most advanced attacks. With nearly 2,000 shared customers, Okta and Palo Alto Networks are joining forces to make security tools work better together. Their partnership helps businesses automate protection, simplify operations and adopt AI faster. Okta Faces Rising Pressure in IAM Space Okta is facing significant competition from CyberArk Software CYBR and Microsoft MSFT in the identity and access management (IAM) domain. CyberArk leads the Privileged Access Management space, strengthened by its Zilla Security and Venafi acquisitions, expanding into Identity Governance and machine identity protection. In the first quarter of 2025, the company posted 43% revenue growth and improved margins, driven by the company's robust dominance in identity security. CyberArk's continuous investments in its product suite and go-to-market are noteworthy. Microsoft's Entra ID poses a significant challenge with its fully integrated Identity and Access Management platform. Serving over 900 million monthly active users, the company offers advanced tools like Single Sign-On, Multi-Factor Authentication, Conditional Access and Identity Protection. Microsoft delivers these capabilities at scalable levels, from free to P2, supported by centralized control and global reach, reinforcing its dominance in secure identity solutions. OKTA's Price Performance, Valuation & Estimates Shares of Okta have appreciated 18.8% year to date compared with the Zacks Security industry's return of 15.6%. OKTA's YTD Price Return Performance From a valuation perspective, Okta, trading at a forward Price/Cash Flow ratio of 21.44, is slightly lower than the broader Zacks Computer and Technology sector's 21.7X. OKTA has a Value Score of D. OKTA Forward 12-Month Price/CF Ratio Image Source: Zacks Investment Research The Zacks Consensus Estimate for OKTA's second-quarter fiscal 2026 earnings is pegged at 84 cents per share, unchanged over the past 30 days, indicating 16.67% year-over-year growth. The consensus mark for fiscal 2026 earnings is pegged at $3.28 per share, unchanged over the past 30 days. The earnings figure suggests 16.73% growth over the figure reported in fiscal 2025. OKTA stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> 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 Microsoft Corporation (MSFT): Free Stock Analysis Report Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report CyberArk Software Ltd. (CYBR): Free Stock Analysis Report Okta, Inc. (OKTA): Free Stock Analysis Report
Techday NZ
6 days ago
- Business
- Techday NZ
Okta, NCC Group partner for enhanced CIAM & cyber security
Okta has partnered with NCC Group to deliver enhanced customer identity and access management (CIAM) services for organisations worldwide. The partnership brings together NCC Group's experience in cybersecurity services with Okta's solutions in CIAM, enterprise identity and access management (IAM), and adaptive multi-factor authentication (MFA). Comprehensive security offering By combining the respective strengths of both companies, the partnership provides businesses with end-to-end IAM services. These include threat intelligence insights, continuous monitoring, protection mechanisms, and compliance with regulatory requirements. NCC Group will deliver CIAM services through advisory, implementation, and managed offerings. The approach expands NCC Group's IAM capabilities with particular focus on customer identity, using Okta's platform along with NCC Group's professional services, Identity Insights solution, and online exposure monitoring. These services also aim to secure supply chain ecosystems by mapping attack paths and integrating risk mitigation and compliance management features. Mitigating identity attack risks NCC Group's expertise in CIAM targets specific security vulnerabilities exploited by malicious actors. Techniques such as brute-force attacks, credential stuffing, and session hijacking are addressed with proactive identification and mitigation strategies. The deployment of identity proofing and verification ensures that only legitimate users access systems, while blocking malicious traffic from bots helps reduce the impact of automated attacks. This collaboration aims to bolster the security of both customer and business data, including financial information, and to defend against vulnerabilities in the supply chain. Securing platforms and data services Beyond CIAM, the partnership encompasses measures to secure platforms and services that host customer-facing solutions and data. This includes assessment services for both on-premise and cloud environments, using Okta's identity security posture management (ISPM) to generate insights into potential cloud risks. NCC Group's identity security insights solution also highlights on-premise risks and addresses process failures across both human and non-human accounts. By leveraging Okta's ISPM, NCC Group can quickly identify, remediate, and manage identity risks, adopting a data-driven approach tailored to the digital identity risks facing each client and focusing on controlling identity sprawl. "Since launching our Digital Identity security service in September 2024, we have focused significant efforts on ensuring our leading CIAM services leverage our full portfolio of capabilities. By combining our online exposure monitoring capabilities and visibility of credentials exposed on the deep and dark web with Okta's technology, we can deliver CIAM solutions that offer a greater depth of insight to mitigate the attack vectors being used by malicious actors today. Offering clients the convenience of CIAM as a service through our established and mature Global Managed Services enables clients to focus on their core business operations with assurance that their CIAM needs are securely managed. Partnering with Okta provides us with exceptional customer identity and access management solutions. Together with our people-powered cyber resilience experience, we are creating a class-defining offering in customer identity management," Derek Gordon, Digital Identity Practise Lead at NCC Group, commented. Industry perspectives "Identity is the foundation of trust in digital business. We believe that there's a massive opportunity for partners to help customers leverage identity to innovate, mitigate the growing threat landscape, and most importantly, protect their customer data. The partnership with NCC Group reinforces our commitment to being partner first. It will allow businesses across Europe to really embrace the power of identity and utilise solutions such as CIAM, enterprise IAM, and adaptive MFA to create a robust security suite. We're only just getting started and excited for a future with NCC and partners at the core of our business," Jorgen Espelund, interim EMEA Partner Lead at Okta, comments. NCC Group has directed sustained investment towards CIAM in recent years, placing customer data protection and risk reduction at the forefront of its security offerings using both technology and threat intelligence. Okta's involvement enhances the focus on compliance and governance, while also providing clients with adaptive and scalable security solutions in a period of rising digital threats. Follow us on: Share on:
