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

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In the latest trading session, Okta (OKTA - Free Report) closed at $98.45, marking a +0.05% move from the previous day. The stock lagged the S&P 500's daily gain of 1.42%. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq lost 0.07%.

Coming into today, shares of the cloud identity management company had gained 8.85% in the past month. In that same time, the Computer and Technology sector gained 6.64%, while the S&P 500 gained 6.69%.

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 -$0.30 per share. This would mark a year-over-year decline of 172.73%. Our most recent consensus estimate is calling for quarterly revenue of $430.57 million, up 36.47% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.10 per share and revenue of $1.82 billion. These totals would mark changes of -139.13% and +39.65%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Okta. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.21% higher within the past month. Okta currently has a Zacks Rank of #4 (Sell).

The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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