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Okta (OKTA) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Okta (OKTA - Free Report) closed at $189.41, marking a -1.23% move from the previous day. This move lagged the S&P 500's daily loss of 0.38%. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Heading into today, shares of the cloud identity management company had lost 6.18% over the past month, outpacing the Computer and Technology sector's loss of 8.71% and the S&P 500's loss of 6.25% in that time.

Investors will be hoping for strength from Okta as it approaches its next earnings release, which is expected to be March 2, 2022. In that report, analysts expect Okta to post earnings of -$0.24 per share. This would mark a year-over-year decline of 500%. Meanwhile, our latest consensus estimate is calling for revenue of $359.38 million, up 53.1% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Okta. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Okta is currently sporting a Zacks Rank of #4 (Sell).

The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow OKTA in the coming trading sessions, be sure to utilize Zacks.com.


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