Cramer Labels Okta Undervalued at 23x Earnings With 7% Growth
Jim Cramer highlighted Okta’s 7% expected earnings growth this year and 23x forward P/E, calling the cybersecurity leader undervalued and worth nibbling at. CEO Todd McKinnon noted a major opportunity in securing thousands to millions of enterprise AI agents, driving Cramer’s optimism.
1. Cramer’s Valuation Thesis
Jim Cramer named Okta one of three beaten-down cybersecurity stocks offering value, suggesting investors consider small positions given the company’s leading identity verification platform.
2. Earnings and P/E Details
Okta is forecast to achieve 7% earnings growth this year and currently trades at 23 times forward earnings, a valuation that Cramer views as attractive relative to enterprise software peers.
3. AI Security Opportunity
CEO Todd McKinnon highlighted Okta’s massive addressable market in securing AI agents, from thousands to potentially millions across enterprise applications, underpinning long-term growth potential.
4. Stock Performance Trends
Despite robust fundamentals, Okta shares are down over 30% from their May highs and have slipped below April lows, reflecting sector-wide pressure that Cramer sees as a buying opportunity.