Core Viewpoint - Okta is set to be added to the S&P MidCap 400 index, which is expected to increase demand for its shares and positively impact its stock price in the short term [2][4]. Group 1: Index Inclusion - Okta will replace Berry Global Group in the S&P MidCap 400 index starting May 1 [2]. - The addition to the index is generally seen as a positive development, as it increases demand from index funds and institutional investors [4]. Group 2: Financial Performance - For fiscal 2025 fourth-quarter results, Okta reported revenue of $682 million, a 13% year-over-year increase, and adjusted EPS of $0.78, which is a 24% jump [5]. - Management provided guidance for 2026, projecting revenue of approximately $2.855 billion and adjusted EPS of $3.17, both exceeding Wall Street expectations [6]. Group 3: Company Recovery - Following a significant security breach, Okta appears to be on a recovery path, which has restored shareholder confidence [6].

Core Viewpoint - Okta's shares have faced an 11% decline in a month due to a challenging macroeconomic environment, but an innovative product portfolio is expected to drive significant growth in 2025 [1] Company Performance - Year-to-date, Okta shares have returned 29.3%, outperforming competitors like Microsoft (MSFT), IBM, and CyberArk, which returned 3.6%, 4.6%, and -8.2% respectively [2] - Okta exited the fourth quarter of fiscal 2025 with 19,650 customers and $4.215 billion in remaining performance obligations, indicating strong growth prospects for subscription revenues [5] - Customers with over $100 thousand in Annual Contract Value increased by 7% year-over-year to 4,800 [5] Product Demand and Innovation - Okta's innovative portfolio, including Okta AI and various identity solutions, is driving strong demand and client acquisition [5][6] - The recent introduction of Auth for GenAI in Developer Preview enhances secure identity integration in GenAI applications [8] Market Position and Recognition - Okta is gaining market share in the cybersecurity domain, outperforming Microsoft, IBM, and CyberArk, and has received accolades from Gartner for its access management capabilities [10][9] - The company has a rich partner base, including AWS, Google, and Salesforce, with over 7,000 integrations as of January 31, 2025 [11] Financial Outlook - For Q1 fiscal 2026, Okta expects revenues between $678 million and $680 million, reflecting a 10% year-over-year growth, with non-GAAP earnings projected between 76 and 77 cents per share [12] - For fiscal 2026, revenues are expected to be between $2.85 billion and $2.86 billion, indicating 9-10% growth from fiscal 2025 [13] - Okta's earnings have consistently beaten Zacks Consensus Estimates, with an average surprise of 15.7% over the trailing four quarters [14] Valuation Metrics - Okta is trading at a forward Price/Sales ratio of 6.05X, compared to the broader sector's 5.56X, indicating a premium valuation [15] - The stock is currently trading above the 200-day moving average, suggesting a bullish trend [19]

Industry Overview - Cybersecurity has transitioned from a back-office concern to a boardroom priority due to the increasing frequency and sophistication of cyberattacks, with global cybercrime costs projected to rise from $9.22 trillion in 2024 to $15.63 trillion by 2029 [1] - The global cybersecurity market is expected to grow from $193.73 billion in 2024 to $562.72 billion by 2032, reflecting a compound annual growth rate (CAGR) of 14.3% [2] - The growth in the cybersecurity market is driven by increasing enterprise IT complexity, rising regulatory scrutiny, and the need for real-time protection of data, identities, and infrastructure [2] Technological Advancements - Artificial intelligence (AI) is revolutionizing the cybersecurity landscape, enabling more efficient detection, prevention, and response to cyber threats [3] - AI can analyze large volumes of data, detect anomalies, and identify potential breaches in real time, providing a proactive approach to security [3] Company Highlights - Companies like Fortinet, Zscaler, Okta, and Qualys are heavily investing in AI-driven security solutions to enhance their capabilities and position themselves for long-term growth in the expanding cybersecurity market [4] - Okta specializes in identity and access management (IAM) and is ramping up its AI capabilities to address the complexities of digital identities [6] - Qualys focuses on vulnerability management and cloud security, integrating advanced AI models into its platforms for faster detection and remediation of security threats [10][11] - Fortinet offers a comprehensive suite of cybersecurity solutions, differentiating itself with high-performance security at lower costs, and has integrated AI-driven analytics into its services [13][14][15] - Zscaler is a pioneer in zero-trust security, enhancing its platform with AI-powered security analytics to improve threat detection and response [16][17][18] Financial Performance - Okta reported 19,650 customers at the end of fiscal Q4 2025, with a 7% year-over-year increase in customers with over $100,000 in Annual Contract Value (ACV) [8] - Qualys' AI-powered platform is expected to drive customer adoption and revenue growth, positioning it well in the market [12] - Fortinet has consistently delivered profitability and strong free cash flow, reflecting its growing market share and demand for AI-enhanced security solutions [15] - Zscaler has maintained robust financial performance with expanding revenues driven by demand for its AI-enhanced offerings [18]

Okta (NASDAQ: OKTA ) leads in the identity security market with strong revenue visibility (RPO growth) and expanding bottom line (Rule of 40+ status and FCF margins). Enterprise demand is solid with record $1B+ quarterly bookings and high growth in $1M+ ACV clients. New products like Identity Governance (OIG) and PrivilegedHi, I'm Yiannis. Spotting winners before they break out is what I do best.Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Education: Chart ...

Core Insights - The cybersecurity sector remains a priority for businesses amid stock market turbulence and increasing online threats [1] - Companies developing advanced security solutions are positioned for significant long-term growth opportunities [2] Company Summaries SentinelOne - Specializes in endpoint security solutions using AI and machine learning for real-time threat detection [3] - Reported a 32% year-over-year revenue increase for fiscal 2025, driven by a rise in enterprise clients and positive customer response to new AI integrations [4] - Expects to surpass $1 billion in annual revenue and achieve positive operating income, presenting a buy-the-dip opportunity as shares are down 41% from their 52-week high [5] Okta - Recognized leader in identity and access management with a cloud-based platform ensuring authorized access to sensitive resources [6] - Shares have increased by 29% year-to-date, supported by better-than-expected quarterly results [6] - Remaining performance obligation rose by 25% to $4.2 billion, indicating strong future revenue potential, with EPS guidance of $3.15 to $3.20, a 12% increase from last year [7][8] Palo Alto Networks - The largest cybersecurity company globally with a market cap of $112 billion, known for its diversified product portfolio [9] - Delivers steady revenue growth and is guiding for double-digit revenue and earnings growth this year, supported by a subscription-based model [10] Fortinet - Maintains a leadership position in on-premise infrastructure solutions with its FortiGate next-generation firewalls [11] - Stock has increased by 42% over the past year, with a strong belief in the continued importance of secure hardware firewalls for enterprise operations [12]

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I am long all positions in the Best of Breed Growth Stocks Portfolio. Okta, Inc. (NASDAQ: OKTA ) is s ...

Market Overview - Wild fluctuations on Wall Street present an ideal opportunity for investors to deploy capital [1] - Historical data indicates that the S&P 500 has experienced 40 corrections of at least 10% since 1950, averaging a decline every 1.9 years [2] - Recent market activity includes the largest single-session point gains and significant single-day losses for major indices, with the S&P 500 recording a 10.5% decline over two days [3] Investment Opportunities - **Block**: A fintech company with a strong foundation in its Square ecosystem, achieving gross payment volume (GPV) of over $227 billion in 2025, with consistent high single-digit growth [6] - Cash App's monthly active users increased from 24 million in 2019 to 57 million by the end of 2024, indicating strong growth potential [7] - Block shares are valued at just over 10 times forward-year earnings, presenting a compelling investment opportunity [8] - **Pinterest**: A social media platform with 553 million monthly active users, showing steady growth and improved ad-pricing power [10] - The platform's unique data-sharing model enhances its advertising capabilities, positioning it well for future e-commerce opportunities [11] - Pinterest ended the previous year with over $2.5 billion in cash and equivalents, allowing for future investments and share buybacks, with a forward P/E ratio of 12 [12] - **Okta**: A cloud-based cybersecurity provider that has become essential for businesses moving data online, with a focus on identity verification solutions [14][15] - Okta's remaining performance obligations reached $4.22 billion by the end of fiscal 2025, indicating strong demand and a growing backlog [16] - The company's subscription margin is expected to approach 80%, and its forward P/E ratio is below 29, reflecting its growth potential despite being pricier than the S&P 500 average [17]

Group 1 - IHS Holding is currently ranked 1 (Strong Buy) in the Zacks Rank system, indicating a favorable outlook for the stock [3] - The Zacks Consensus Estimate for IHS' full-year earnings has increased by 30.9% over the past quarter, reflecting improved analyst sentiment [4] - Year-to-date, IHS Holding has gained approximately 57.5%, significantly outperforming the average loss of 14.5% in the Computer and Technology sector [4] Group 2 - IHS Holding is part of the Communication - Infrastructure industry, which is currently ranked 16 in the Zacks Industry Rank [6] - The Communication - Infrastructure industry has shown better year-to-date performance compared to the average gain of 1.3% in its group [6] - Another notable stock in the Computer and Technology sector is Okta (OKTA), which has increased by 29.2% year-to-date and has a Zacks Rank of 2 (Buy) [5]

Core Viewpoint - The cybersecurity market is projected to grow significantly, benefiting both Cisco Systems and Okta, with Cisco focusing on enterprise network security and Okta on identity and access management [2]. Group 1: Cisco Systems - Cisco Systems' security business is experiencing robust growth, with strong demand for Cisco Secure Access and XDR, attracting over 1,000 customers and approximately 1 million enterprise users for each product [3]. - In Q2 fiscal 2025, Cisco's security orders more than doubled, with security revenues increasing 117% year over year to $2.11 billion, driven by Splunk, SASE, and Network Security [4]. - Cisco launched new security products, including Splunk on Azure and AI Assistant for Splunk Observability, expanding its security portfolio [5]. - Cisco is collaborating with NVIDIA to develop the Cisco Secure AI Factory, focusing on securing AI infrastructure [6]. Group 2: Okta - Okta is experiencing strong demand for its identity security solutions, with over 20% of Q4 fiscal 2025 bookings from new products, including Okta Identity Governance and Identity Threat Protection [7]. - The company served 19,650 customers by the end of Q4 fiscal 2025, reflecting a growing need for secure identity management [8]. - Okta's partnership with AWS has strengthened its security efforts, with over 70% of deals influenced by partners, surpassing $1 billion in total contract value through this partnership [9]. Group 3: Stock Performance and Valuation - Year to date, Cisco shares have decreased by 10.2%, while Okta shares have increased by 15.9%, with Cisco facing challenges from macroeconomic uncertainty and competition [10]. - Both Cisco and Okta shares are currently considered overvalued, with Cisco trading at a forward Price/Sales ratio of 3.64X and Okta at 5.47X [13]. - The Zacks Consensus Estimate for Cisco's fiscal 2025 earnings is $3.72 per share, indicating a 0.27% decline year over year, while Okta's fiscal 2026 earnings estimate is $3.17 per share, reflecting a 12.81% increase year over year [16]. Group 4: Earnings Performance - Both Cisco and Okta have consistently beaten earnings estimates in the past four quarters, with Okta showing a higher average surprise of 15.7% compared to Cisco's 4.07% [17]. Group 5: Conclusion - Okta is viewed as a more attractive investment due to its focus on identity solutions, stronger earnings performance, and higher growth potential, while Cisco is expanding its security footprint [18].

Group 1 - Okta Inc (NASDAQ:OKTA) has experienced a significant pullback of 12.6% since the beginning of April, following a two-year high of $118.07 on March 24 [1] - The stock is currently interacting with its 126-day moving average, which is historically considered a bullish signal [1] - The stock has maintained a year-to-date gain of 16.9% and is in "oversold" territory with a 14-day relative strength index (RSI) of 15.2, indicating potential for a short-term bounce [4] Group 2 - For the first time in at least eight of the last ten trading days, Okta's stock is within one standard deviation of the 126-day trendline, after spending over 75% of the last six months above it [2] - Historical data shows that after similar occurrences in the past three years, Okta's stock was higher one month later 100% of the time, with an average gain of 28.7% [2]