From Nasdaq: 2024-11-18 11:01:00

Okta (OKTA) shares are trading at a premium compared to the industry, with a P/S ratio of 4.55X. Despite this, OKTA is undervalued compared to peers like Microsoft (MSFT), Palo Alto Networks (PANW), and CrowdStrike (CRWD) with higher P/S ratios.

OKTA’s portfolio strength is evident with strong demand for new products and an expanding clientele. Fiscal 2025 outlook shows revenue growth of 13% over fiscal 2024, with non-GAAP earnings expected to increase significantly.

OKTA’s earnings estimate for Q3 fiscal 2025 remains steady, with a 29.55% year-over-year growth. The company’s strong portfolio and growth prospects make it a viable investment option for long-term investors.

Despite a challenging macroeconomic environment, OKTA is expected to benefit from its innovative portfolio and strong demand for identity solutions. The company’s growth prospects align with the global security market’s projected double-digit growth over the next five years.

Investors may find OKTA a risky bet in the short term due to its valuation, but its long-term growth potential and portfolio strength make it a rewarding investment. The company’s Zacks Rank #3 suggests waiting for a better entry point to accumulate the stock.



Read more at Nasdaq: Is Okta Stock’s 4.55X P/S Still Worth it? Buy, Sell or Hold?