Okta, Inc. (OKTA) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Okta (OKTA)? Shares have been on the move with the stock up 19.4% over the past month. The stock hit a new 52-week high of $116.75 in the previous session. Okta has gained 47.6% since the start of the year compared to the -4.1% move for the Zacks Computer and Technology sector and the 7.9% return for the Zacks Security industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on March 3, 2025, Okta reported EPS of $0.78 versus consensus estimate of $0.73 while it beat the consensus revenue estimate by 1.97%.For the current fiscal year, Okta is expected to post earnings of $2.93 per share on $2.85 billion in revenues. This represents a 4.27% change in EPS on a 9.14% change in revenues. For the next fiscal year, the company is expected to earn $3.27 per share on $3.1 billion in revenues. This represents a year-over-year change of 11.66% and 8.71%, respectively.Valuation MetricsOkta may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Okta has a Value Score of F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 39.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 61.5X. On a trailing cash flow basis, the stock currently trades at 5X versus its peer group's average of 68.3X. Additionally, the stock has a PEG ratio of 1.67. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Okta currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Okta passes the test. Thus, it seems as though Okta shares could have potential in the weeks and months to come.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks