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

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Okta (OKTA - Free Report) closed at $216.55 in the latest trading session, marking a -1.93% move from the prior day. This change lagged the S&P 500's 0.52% gain on the day. Elsewhere, the Dow gained 0.54%, while the tech-heavy Nasdaq added 0.19%.

Prior to today's trading, shares of the cloud identity management company had gained 6.3% over the past month. This has lagged the Computer and Technology sector's gain of 7.19% and outpaced the S&P 500's gain of 4.79% in that time.

Wall Street will be looking for positivity from OKTA as it approaches its next earnings report date. In that report, analysts expect OKTA to post earnings of -$0.02 per share. This would mark year-over-year growth of 71.43%. Meanwhile, our latest consensus estimate is calling for revenue of $202.63 million, up 32.41% from the prior-year quarter.

OKTA's full-year Zacks Consensus Estimates are calling for earnings of -$0.02 per share and revenue of $802.19 million. These results would represent year-over-year changes of +93.55% and +36.88%, respectively.

Investors might also notice recent changes to analyst estimates for OKTA. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. OKTA is currently sporting 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 227, which puts it in the bottom 11% 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.

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


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