Is Now the Right Time to Buy Okta Stock?

Following the March market lows, Okta (NASDAQ: OKTA) stock shot past its February peak. As of this writing, this tech stock trades near all-time highs. With more employees working from home amid the coronavirus pandemic, the company's single sign-on solution continues to grow in popularity.

Unfortunately for new investors, this has taken Okta's valuation to stratospheric highs. While that may not change the long-term prospects for Okta, it does call into question the wisdom of buying now. Although the level of anticipated profit growth indicates that Okta should trade at a higher level years from now, investors should consider staying on the sidelines for the foreseeable future.

To be sure, the value proposition behind Okta's leading product is self-evident. People have grown tired of maintaining dozens of passwords that have to change regularly. To that end, the single sign-on solution makes life easier for many. This value has translated into customer growth and positive cash flows that have sent the stock surging higher since the lows in March.

Source Fool.com