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

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Okta (OKTA - Free Report) closed at $251.84 in the latest trading session, marking a +0.23% move from the prior day. The stock lagged the S&P 500's daily gain of 1.13%.

Coming into today, shares of the cloud identity management company had gained 13.12% in the past month. In that same time, the Computer and Technology sector gained 4.4%, while the S&P 500 gained 2.39%.

Investors will be hoping for strength from OKTA as it approaches its next earnings release. In that report, analysts expect OKTA to post earnings of -$0.35 per share. This would mark a year-over-year decline of 600%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $295.12 million, up 47.23% from the year-ago period.

OKTA's full-year Zacks Consensus Estimates are calling for earnings of -$1.13 per share and revenue of $1.21 billion. These results would represent year-over-year changes of -1127.27% and +44.95%, respectively.

Any recent changes to analyst estimates for OKTA should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 remained stagnant. OKTA is currently a Zacks Rank #4 (Sell).

The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 28% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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