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Okta (OKTA) Outpaces Stock Market Gains: What You Should Know

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Okta (OKTA - Free Report) closed the most recent trading day at $233.96, moving +0.88% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.83%.

Heading into today, shares of the cloud identity management company had lost 11.97% over the past month, lagging the Computer and Technology sector's loss of 7.26% and the S&P 500's loss of 3.68% in that time.

Wall Street will be looking for positivity from OKTA as it approaches its next earnings report date. The company is expected to report EPS of -$0.23, down 675% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $327.33 million, up 50.58% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.75 per share and revenue of $1.25 billion. These totals would mark changes of -781.82% and +49.55%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for OKTA. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. OKTA is currently a Zacks Rank #5 (Strong Sell).

The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 237, which puts it in the bottom 7% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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