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Okta (OKTA) Gains But Lags Market: What You Should Know

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In the latest trading session, Okta (OKTA - Free Report) closed at $101.77, marking a +0.05% move from the previous day. This change lagged the S&P 500's 0.23% gain on the day. Elsewhere, the Dow gained 0.06%, while the tech-heavy Nasdaq added 0.09%.

Prior to today's trading, shares of the cloud identity management company had lost 1.27% over the past month. This has lagged the Computer and Technology sector's gain of 11.35% and the S&P 500's gain of 10.76% in that time.

Investors will be hoping for strength from Okta as it approaches its next earnings release, which is expected to be August 31, 2022. In that report, analysts expect Okta to post earnings of -$0.30 per share. This would mark a year-over-year decline of 172.73%. Our most recent consensus estimate is calling for quarterly revenue of $430.57 million, up 36.47% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.10 per share and revenue of $1.82 billion, which would represent changes of -139.13% and +39.65%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Okta. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Okta is currently a Zacks Rank #3 (Hold).

The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 56, putting it in the top 23% 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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