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Yahoo
23-06-2025
- Business
- Yahoo
CrowdStrike vs. Okta: Which Cybersecurity Stock is a Better Buy?
CrowdStrike CRWD and Okta OKTA are both major players in the field of cybersecurity. While CrowdStrike specializes in endpoint protection and extended detection and response ('XDR'), offering AI-native cloud security through its Falcon platform, OKTA focuses on identity and access management, providing cloud-based solutions that help businesses safeguard user and Okta are capitalizing on the rapid improvement of the cybersecurity space, fueled by the rise of complex attacks, including credential theft and abuse, remote desktop protocol attacks and social engineering-based initial access. Per a Mordor Intelligence report, the cybersecurity market is projected to witness a CAGR of 12.63% from 2025 to this strong industry growth forecast, the question remains: Which stock has more upside potential? Let's break down their fundamentals, growth prospects, market challenges and valuation to determine which offers a more compelling investment case. CrowdStrike provides its cybersecurity services mainly through its Falcon platform. CrowdStrike's Falcon platform is renowned for being the industry's first multi-tenant, cloud native, intelligent security solution. The Falcon platform helps in securing workloads across on-premise, cloud-based and virtualized environments running on several endpoints, such as desktops, laptops, servers, virtual machines and IoT cloud-based Falcon platform currently provides 29 cloud modules via a SaaS subscription model that is categorised under three categories - Endpoint Security, Security & IT Operations, and Threat Intelligence. The share of subscription-based sales to CrowdStrike's total revenues grew from 72% in fiscal 2017 to 95% in fiscal the company is facing several headwinds related to customers' negative sentiments since the global IT outage incident on July 19, 2024. The company has been implementing the Customer Commitment Package to retain its customers, which includes product additions and discounts, hence compressing its of all these measures, the company's upsell into existing customers showed signs of slowdown and the churn rate remained moderate. These factors are likely to weigh on CRWD's profitability in the near term. The Zacks Consensus Estimate for CrowdStrike's fiscal 2026 earnings indicates a year-over-year decline of 10.94%. Image Source: Zacks Investment Research Okta's latest financial results for the first quarter of fiscal 2026 highlight its strengthening position as a leader in identity security. Its broad portfolio, which includes Okta Identity Governance, Privileged Access, Device Access, Identity Security Posture Management, Identity Threat Protection with Okta AI, and Auth for GenAI, continues to drive customer wins and expand its addressable exited the first quarter with roughly 20,000 customers and $4.08 billion in remaining performance obligations, reflecting strong growth prospects for subscription revenues. Customers with more than $100K in Annual Contract Value increased 7% year over year to 4, ability to help organizations secure both human and non-human identities is becoming a key competitive advantage. During its last earnings call, the company noted that the recent boom in AI agents has resulted in a tremendous increase in non-human identities, and its Identity Security Posture Management and Privileged Access solutions have the capabilities to address this problem. Also, Okta's newly introduced suite-based pricing model is likely to encourage customers to consolidate identity solutions with Okta, driving cross-sell opportunities for the is also benefiting from a rich partner base that includes the likes of Amazon Web Services, CrowdStrike, Google, LexisNexis Risk Solutions, Microsoft, Netskope, Palo Alto Networks, Plaid, Proofpoint, Salesforce, ServiceNow, VMware, Workday, Yubico and Zscaler. These factors are likely to continue driving growth in OKTA's top and bottom lines. The Zacks Consensus Estimate for Okta's fiscal 2026 revenues and earnings indicates year-over-year growth of 9.44% and 16.73%, respectively. Image Source: Zacks Investment Research Year to date, CrowdStrike shares have appreciated 39.2% and OKTA shares have surged 26.2%. Image Source: Zacks Investment Research OKTA is trading at a forward sales multiple of 5.87X, below the security industry's 14.51X. Whereas, CRWD is trading at a forward sales multiple of 22.93X, indicating its overvaluation at present. Image Source: Zacks Investment Research While CrowdStrike is still navigating the headwinds emerging from reputational damage caused by the global IT outage and shrinking profit margin, OKTA's focus on identity solutions, stronger earnings growth potential and low valuations make the stock more attractive for investors seeking growth in the cybersecurity space. Currently, Okta carries a Zacks Rank #2 (Buy), making the stock a must-pick compared to CrowdStrike, 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 Okta, Inc. (OKTA) : Free Stock Analysis Report CrowdStrike (CRWD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
06-05-2025
- Business
- Yahoo
Okta (NasdaqGS:OKTA) Sees 26% Rise Over Past Month
Okta has been included in the S&P 1000 and several other indices recently, a development that could enhance investor appeal and visibility. This, alongside the launch of Auth for GenAI on the Auth0 platform, appears to have bolstered the company's profile amid a cautious market environment. The tech market faced some overall declines due to tariff uncertainties and anticipation of the Federal Reserve's announcements, but Okta's share price reflected resistance against market trends by rising 26% over the past month, slightly contrasting with the broader market's flatter trajectory. Every company has risks, and we've spotted 1 risk for Okta you should know about. NasdaqGS:OKTA Earnings Per Share Growth as at May 2025 The latest GPUs need a type of rare earth metal called Dysprosium and there are only 24 companies in the world exploring or producing it. Find the list for free. Over the past three years, Okta's total return, including share price and dividends, was 30.26%. This performance contextually complements a 26% rise in share price over the past month, indicating a significant rebound amid recent market pressures. Comparatively, Okta's performance aligned with the US IT industry, matching its 15.9% return over the past year. While the broader market returned 8.2% in the same timeframe, Okta exceeded this benchmark, highlighting its relative resilience and investor confidence. The recent inclusion of Okta in major indices such as the S&P 1000 and the launch of innovations like Auth for GenAI could enhance the company's growth potential. These developments are poised to influence Okta's anticipated revenue and earnings advancements, with projections indicating an 8.8% annual revenue growth, slightly outpacing the market average. Furthermore, Okta's current share price, although experiencing pronounced recent gains, reflects a minor discount relative to consensus analyst price targets of US$118.25. Consequently, the ongoing market recognition and strategic initiatives are likely integrated into these optimistic forecasts, underpinning Okta's competitive positioning and forward outlook. Review our growth performance report to gain insights into Okta's future. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
27-04-2025
- Business
- Yahoo
High Growth Tech Stocks To Watch In The US April 2025
As the U.S. stock market navigates through a period of mixed performance, with major indices like the Dow Jones experiencing fluctuations due to ongoing tariff uncertainties, investors are closely watching the tech sector for potential opportunities. In this environment, identifying high-growth tech stocks involves looking for companies that demonstrate resilience and innovation amidst economic challenges and market volatility. Name Revenue Growth Earnings Growth Growth Rating Super Micro Computer 20.29% 29.79% ★★★★★★ TG Therapeutics 26.06% 37.39% ★★★★★★ Travere Therapeutics 28.65% 66.06% ★★★★★★ Arcutis Biotherapeutics 26.11% 58.46% ★★★★★★ Alkami Technology 20.46% 85.16% ★★★★★★ Clene 62.08% 64.01% ★★★★★★ Alnylam Pharmaceuticals 23.08% 58.88% ★★★★★★ AVITA Medical 27.81% 55.17% ★★★★★★ Lumentum Holdings 21.34% 120.49% ★★★★★★ Ascendis Pharma 32.78% 59.70% ★★★★★★ Click here to see the full list of 234 stocks from our US High Growth Tech and AI Stocks screener. Let's explore several standout options from the results in the screener. Simply Wall St Growth Rating: ★★★★☆☆ Overview: Okta, Inc. is a global identity management company that provides secure access solutions for enterprises, with a market capitalization of approximately $17.07 billion. Operations: The company generates revenue primarily from its Internet Software & Services segment, totaling $2.61 billion. Okta's recent pivot towards enhancing security in generative AI applications marks a strategic expansion in high-growth tech sectors. By introducing Auth for GenAI, Okta addresses critical gaps in AI-driven application security, catering to the burgeoning demand for robust identity verification systems. This move not only diversifies Okta's product offerings but also positions it favorably within an industry shifting rapidly towards AI integration. Financially, Okta has turned a corner with its latest annual report showing a swing to a net income of $28 million from a previous net loss of $355 million, reflecting significant operational improvements and potential for sustained growth. Delve into the full analysis health report here for a deeper understanding of Okta. Understand Okta's track record by examining our Past report. Simply Wall St Growth Rating: ★★★★☆☆ Overview: Kyndryl Holdings, Inc. is a global technology services company specializing in IT infrastructure services, with a market cap of approximately $7.22 billion. Operations: The company generates revenue primarily from its IT infrastructure services across various regions, with the United States contributing $3.90 billion and Principal Markets adding $5.63 billion to its revenue streams. Kyndryl Holdings, recently profitable, is navigating the high-growth tech landscape with strategic initiatives in AI and data security. The company's launch of Kyndryl Consult Data Security Posture Management with Microsoft Purview underscores its commitment to enhancing data protection capabilities across hybrid environments. This move, coupled with a suite of AI private cloud services developed in collaboration with NVIDIA, positions Kyndryl to capitalize on enterprise-grade AI solutions demand. Despite modest revenue growth at 1.1% annually, Kyndryl's earnings are expected to surge by 47.8% per year, showcasing a significant turnaround in profitability and operational efficiency. Unlock comprehensive insights into our analysis of Kyndryl Holdings stock in this health report. Assess Kyndryl Holdings' past performance with our detailed historical performance reports. Simply Wall St Growth Rating: ★★★★★☆ Overview: TKO Group Holdings, Inc. is a sports and entertainment company with a market capitalization of approximately $25.85 billion. Operations: TKO Group Holdings generates revenue primarily through its UFC and WWE segments, contributing approximately $1.41 billion and $1.40 billion, respectively. The company operates within the sports and entertainment industry, leveraging these major brands to drive its financial performance. TKO Group Holdings has demonstrated a robust trajectory in the high-growth tech sector, notably with its recent earnings turnaround and strategic licensing expansions. In 2024, the company not only reversed its net losses, posting a net income of $31 million from a previous loss but also increased its sales to $642.2 million from $614 million year-over-year. This financial revitalization is underscored by an aggressive revenue target of up to $3 billion for 2025, reflecting an annual growth rate of 16.8%. Additionally, TKO's strategic move to extend its licensing agreement with WWE and Mattel ensures continued penetration into diverse global markets, leveraging popular culture for sustained growth. This blend of financial health and strategic partnerships positions TKO well within the competitive tech landscape. Navigate through the intricacies of TKO Group Holdings with our comprehensive health report here. Learn about TKO Group Holdings' historical performance. Dive into all 234 of the US High Growth Tech and AI Stocks we have identified here. Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly. Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:OKTA NYSE:KD and NYSE:TKO. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
25-04-2025
- Business
- Yahoo
High Growth Tech Stocks To Watch In The US April 2025
As the U.S. stock market navigates through a period of mixed performance, with major indices like the Dow Jones experiencing fluctuations due to ongoing tariff uncertainties, investors are closely watching the tech sector for potential opportunities. In this environment, identifying high-growth tech stocks involves looking for companies that demonstrate resilience and innovation amidst economic challenges and market volatility. Name Revenue Growth Earnings Growth Growth Rating Super Micro Computer 20.29% 29.79% ★★★★★★ TG Therapeutics 26.06% 37.39% ★★★★★★ Travere Therapeutics 28.65% 66.06% ★★★★★★ Arcutis Biotherapeutics 26.11% 58.46% ★★★★★★ Alkami Technology 20.46% 85.16% ★★★★★★ Clene 62.08% 64.01% ★★★★★★ Alnylam Pharmaceuticals 23.08% 58.88% ★★★★★★ AVITA Medical 27.81% 55.17% ★★★★★★ Lumentum Holdings 21.34% 120.49% ★★★★★★ Ascendis Pharma 32.78% 59.70% ★★★★★★ Click here to see the full list of 234 stocks from our US High Growth Tech and AI Stocks screener. Let's explore several standout options from the results in the screener. Simply Wall St Growth Rating: ★★★★☆☆ Overview: Okta, Inc. is a global identity management company that provides secure access solutions for enterprises, with a market capitalization of approximately $17.07 billion. Operations: The company generates revenue primarily from its Internet Software & Services segment, totaling $2.61 billion. Okta's recent pivot towards enhancing security in generative AI applications marks a strategic expansion in high-growth tech sectors. By introducing Auth for GenAI, Okta addresses critical gaps in AI-driven application security, catering to the burgeoning demand for robust identity verification systems. This move not only diversifies Okta's product offerings but also positions it favorably within an industry shifting rapidly towards AI integration. Financially, Okta has turned a corner with its latest annual report showing a swing to a net income of $28 million from a previous net loss of $355 million, reflecting significant operational improvements and potential for sustained growth. Delve into the full analysis health report here for a deeper understanding of Okta. Understand Okta's track record by examining our Past report. Simply Wall St Growth Rating: ★★★★☆☆ Overview: Kyndryl Holdings, Inc. is a global technology services company specializing in IT infrastructure services, with a market cap of approximately $7.22 billion. Operations: The company generates revenue primarily from its IT infrastructure services across various regions, with the United States contributing $3.90 billion and Principal Markets adding $5.63 billion to its revenue streams. Kyndryl Holdings, recently profitable, is navigating the high-growth tech landscape with strategic initiatives in AI and data security. The company's launch of Kyndryl Consult Data Security Posture Management with Microsoft Purview underscores its commitment to enhancing data protection capabilities across hybrid environments. This move, coupled with a suite of AI private cloud services developed in collaboration with NVIDIA, positions Kyndryl to capitalize on enterprise-grade AI solutions demand. Despite modest revenue growth at 1.1% annually, Kyndryl's earnings are expected to surge by 47.8% per year, showcasing a significant turnaround in profitability and operational efficiency. Unlock comprehensive insights into our analysis of Kyndryl Holdings stock in this health report. Assess Kyndryl Holdings' past performance with our detailed historical performance reports. Simply Wall St Growth Rating: ★★★★★☆ Overview: TKO Group Holdings, Inc. is a sports and entertainment company with a market capitalization of approximately $25.85 billion. Operations: TKO Group Holdings generates revenue primarily through its UFC and WWE segments, contributing approximately $1.41 billion and $1.40 billion, respectively. The company operates within the sports and entertainment industry, leveraging these major brands to drive its financial performance. TKO Group Holdings has demonstrated a robust trajectory in the high-growth tech sector, notably with its recent earnings turnaround and strategic licensing expansions. In 2024, the company not only reversed its net losses, posting a net income of $31 million from a previous loss but also increased its sales to $642.2 million from $614 million year-over-year. This financial revitalization is underscored by an aggressive revenue target of up to $3 billion for 2025, reflecting an annual growth rate of 16.8%. Additionally, TKO's strategic move to extend its licensing agreement with WWE and Mattel ensures continued penetration into diverse global markets, leveraging popular culture for sustained growth. This blend of financial health and strategic partnerships positions TKO well within the competitive tech landscape. Navigate through the intricacies of TKO Group Holdings with our comprehensive health report here. Learn about TKO Group Holdings' historical performance. Dive into all 234 of the US High Growth Tech and AI Stocks we have identified here. Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly. Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:OKTA NYSE:KD and NYSE:TKO. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
09-03-2025
- Business
- Yahoo
Okta Shares Soared on Management's Outlook. Is It Too Late to Buy the Stock?
Share prices of Okta (NASDAQ: OKTA) surged higher after the cybersecurity company on Monday reported fiscal 2025 fourth-quarter results that easily topped analyst expectations and offered upbeat guidance. The stock trades up about 30% year to date as of this writing, although it's still down over the past 12 months. With that initial pop in the books, can Okta continue to rally, or have investors missed their near-term window to buy the stock? Okta suffered a big cybersecurity failure in the autumn of 2023 when hackers stole data from customers who used its support system. That put a damper on the stock price through much of 2024, but the impact of the incident now appears to be in the rear-view mirror. For its fiscal Q4, which ended Jan. 31, Okta's revenue increased by 13% year over year to $682 million, which blew past both its $667 million to $669 million guidance range and the $669 million analyst consensus compiled by FactSet. Subscription revenue also rose by 13% to $670 million. Adjusted earnings per share (EPS) jumped 24% to $0.78 from $0.63 a year ago. The company had guided for adjusted EPS to be between $0.73 and $0.74. Okta's net dollar retention rate -- which measures the amount of revenue that came from established customers relative to their prior-year spending -- was 107%. Management expects it to remain in that neighborhood in fiscal 2026. That metric has drifted lower in recent quarters, a trend Okta attributed to relatively low hiring rates among its clients. Its net dollar retention rate was 111% in fiscal 2024. Okta continues to add customers, and it's doing particularly well at bringing on new enterprise-level clients. It added about 200 total customers in the quarter, ending the fiscal year with 19,650, an increase of 4% year over year. Customers with annual contract values (ACVs) above $100,000 rose to 4,800, up 7% year over year, and customers with ACVs of more than $1 million climbed by 22% to 470. That customer cohort accounted for over $1 billion in total ACV. The company said that its Okta Identity Governance (OIG) solution has been a strong seller since its launch two years ago; it now has 1,300 customers with a total ACV of more than $100 million. Later this month, the company will launch its new Auth for GenAI solution, which will help customers securely build and scale generative AI applications. It says it has a waitlist of customers looking to try the product. Okta's remaining performance obligation (RPO) backlog climbed by 25% to $4.22 billion, while its current RPO (cRPO) backlog, which is subscription backlog expected to be recognized over the next 12 months, increased by 15% to nearly $2.25 billion. Both metrics are based on signed contracts and are an indication of future revenue. Both its RPO and cRPO backlog growth saw nice accelerations in growth from their fiscal Q3 levels. Management is now guiding for fiscal 2026 revenue to be between $2.85 billion and $2.86 billion, which would amount to growth of 9% to 10%. The company had previously forecast fiscal 2026 revenue would be between $2.77 billion and $2.78 billion. It's also now projecting adjusted EPS of $3.15 to $3.20 for the year. For fiscal Q1 2026, it guided for revenue to grow by about 10% to between $678 million to $680 million, which was above the $670 million analyst consensus. It is looking for adjusted EPS to be between $0.76 to $0.77. With a forward price-to-sales (P/S) ratio of about 6 times fiscal 2026 analyst estimates, Okta is still reasonably valued relative to many other cybersecurity stocks. The company has been conservative with its guidance recently, and in part as a result surpassed the high end of its original fiscal 2025 revenue guidance range by 4%. A similar outcome in fiscal 2026 would see Okta produce revenue of around $2.9 billion, which would represent growth of around 11%. Fiscal 2025's Q4 was a good quarter and I expect the company to continue to raise its guidance throughout fiscal 2026. That said, I would not chase the stock at this time. Cybersecurity investors tend to prefer growth, and Okta's revenue growth rates are still relatively low compared to top-tier companies in the industry. With the labor market environment likely to not be robust this year (a condition which could drag on Okta's growth), I'd stay on the sidelines. Before you buy stock in Okta, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Okta wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $677,631!* Now, it's worth noting Stock Advisor's total average return is 822% — a market-crushing outperformance compared to 166% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of March 3, 2025 Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike, FactSet Research Systems, and Okta. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy. Okta Shares Soared on Management's Outlook. Is It Too Late to Buy the Stock? was originally published by The Motley Fool Sign in to access your portfolio
