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Okta (OKTA) Dips More Than Broader Markets: What You Should Know

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Okta (OKTA - Free Report) closed at $104.07 in the latest trading session, marking a -0.4% move from the prior day. This move lagged the S&P 500's daily loss of 0.08%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq lost 0.06%.

Coming into today, shares of the cloud identity management company had gained 3.12% in the past month. In that same time, the Computer and Technology sector gained 12.38%, while the S&P 500 gained 8.78%.

Okta will be looking to display strength as it nears its next earnings release, which is expected to be August 31, 2022. On that day, Okta is projected to report earnings of -$0.30 per share, which would represent a year-over-year decline of 172.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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 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 group has a Zacks Industry Rank of 152, putting it in the bottom 40% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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