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

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Okta (OKTA - Free Report) closed the most recent trading day at $204.41, moving +1.19% from the previous trading session. This change outpaced the S&P 500's 0.08% gain on the day. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 0.42%.

Heading into today, shares of the cloud identity management company had lost 4.63% over the past month, outpacing the Computer and Technology sector's loss of 5.11% and lagging the S&P 500's gain of 0.22% 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 -$0.24, down 500% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $359.38 million, up 53.1% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.52 per share and revenue of $1.28 billion. These totals would mark changes of -572.73% and +52.81%, respectively, from last year.

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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Okta is holding a Zacks Rank of #2 (Buy) right now.

The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 34% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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