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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 $255.02 in the latest trading session, marking a -0.2% move from the prior day. This move lagged the S&P 500's daily gain of 0.75%.

Coming into today, shares of the cloud identity management company had lost 0.1% in the past month. In that same time, the Computer and Technology sector lost 2.38%, while the S&P 500 lost 0.05%.

Investors will be hoping for strength from OKTA as it approaches its next earnings release. The company is expected to report EPS of -$0.23, down 675% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $327.33 million, up 50.58% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.75 per share and revenue of $1.25 billion. These totals would mark changes of -781.82% and +49.55%, respectively, from last year.

Any recent changes to analyst estimates for OKTA should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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 currently has a Zacks Rank of #5 (Strong Sell).

The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 229, putting it in the bottom 10% 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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