Okta stock surges 9% in a month, expected to continue strong growth

From NASDAQ.: 2024-12-23 11:47:00

Okta (OKTA) shares have surged 8.9% in a month, outperforming the Computer & Technology sector and Internet Software and Services industry. The company boasts a strong portfolio, with new products driving demand and an expanding clientele. Okta exited Q3 with 19,450 customers and $2.062 billion in performance obligations.

OKTA’s innovative portfolio, including Okta AI, is expected to drive top-line growth with a revenue CAGR of 26% by fiscal 2025. In September, Okta expanded capabilities of Auth0 and Customer Identity Cloud. Gartner ranks Okta higher than Microsoft and CyberArk, highlighting its strong market position in cybersecurity.

The global security market is expected to reach $200 billion in 2028, with IAM being a fast-growing segment. Okta’s new Workforce Identity Cloud capabilities address governance risks and identity verification. Okta’s Q4 and FY25 outlook is strong, expecting revenue growth between 10-15% and non-GAAP earnings growth as well.

For Q4 FY25, the consensus estimate for Okta’s earnings is 73 cents per share, with a 15.87% year-over-year growth. Okta shares trade at a premium compared to the industry. The company has a Zacks Rank #2 and a Growth Score of A, offering a strong investment opportunity.

Zacks is naming the top 10 stocks for 2025, with a history of exceptional performance. Sheraz Mian is selecting the best 10 tickers to buy and hold for the year. Okta, along with Microsoft, IBM, and CyberArk, is part of this exclusive list. Don’t miss out on these potential market movers.



Read more at NASDAQ.: Okta Rises 9% in a Month: Is the Stock a Screaming Buy in 2025?