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

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In the latest trading session, Okta (OKTA - Free Report) closed at $83.60, marking a -1.21% move from the previous day. This move lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.46%, while the tech-heavy Nasdaq added 0.08%.

Coming into today, shares of the cloud identity management company had gained 16.81% in the past month. In that same time, the Computer and Technology sector gained 7.64%, while the S&P 500 gained 5.93%.

Wall Street will be looking for positivity from OKTA as it approaches its next earnings report date. This is expected to be March 7, 2019. On that day, OKTA is projected to report earnings of -$0.08 per share, which would represent year-over-year growth of 20%. Meanwhile, our latest consensus estimate is calling for revenue of $107.94 million, up 38.83% from the prior-year quarter.

It is also important to note the 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. OKTA currently has a Zacks Rank of #3 (Hold).

The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 39, which puts it in the top 16% 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.

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


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