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

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Okta (OKTA - Free Report) closed at $100.79 in the latest trading session, marking a +1.51% move from the prior day. This move outpaced the S&P 500's daily gain of 0.29%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.19%.

Prior to today's trading, shares of the cloud identity management company had lost 3.03% over the past month. This has lagged the Computer and Technology sector's loss of 0.13% and the S&P 500's gain of 0.32% in that time.

Investors will be hoping for strength from OKTA as it approaches its next earnings release. The company is expected to report EPS of -$0.12, down 200% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $143.38 million, up 35.8% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.43 per share and revenue of $561.46 million. These totals would mark changes of -34.38% and +40.63%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for OKTA. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.34% lower. OKTA is holding a Zacks Rank of #3 (Hold) right now.

The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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