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

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In the latest trading session, Okta (OKTA - Free Report) closed at $178.04, marking a +0.21% move from the previous day. This move outpaced the S&P 500's daily loss of 0.15%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Heading into today, shares of the cloud identity management company had lost 20.85% over the past month, lagging the Computer and Technology sector's loss of 14.1% and the S&P 500's loss of 7.66% in that time.

Wall Street will be looking for positivity from Okta as it approaches its next earnings report date. On that day, Okta is projected to report earnings of -$0.24 per share, which would represent a year-over-year decline of 500%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $359.38 million, up 53.1% from the year-ago period.

OKTA's full-year Zacks Consensus Estimates are calling for earnings of -$0.52 per share and revenue of $1.28 billion. These results would represent year-over-year changes of -572.73% and +52.81%, respectively.

Investors should also note any 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Okta currently has a Zacks Rank of #2 (Buy).

The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 91, putting it in the top 36% 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.

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


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