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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 $84.22, moving +1.43% from the previous trading session. This change outpaced the S&P 500's 0.02% gain on the day. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 0.16%.

Coming into today, shares of the cloud identity management company had lost 40.17% in the past month. In that same time, the Computer and Technology sector lost 14.21%, while the S&P 500 lost 12.5%.

Wall Street will be looking for positivity from Okta as it approaches its next earnings report date. This is expected to be June 2, 2022. On that day, Okta is projected to report earnings of -$0.34 per share, which would represent a year-over-year decline of 240%. Meanwhile, our latest consensus estimate is calling for revenue of $388.98 million, up 54.97% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.26 per share and revenue of $1.78 billion, which would represent changes of -173.91% and +37.18%, respectively, from the prior year.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 0.13% lower. Okta is holding a Zacks Rank of #3 (Hold) 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 161, which puts it in the bottom 37% 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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