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Surging Earnings Estimates Signal Good News for Okta (OKTA)

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Okta, Inc. (OKTA - Free Report) is an independent provider of identity for the enterprise that could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on OKTA’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Okta could be a solid choice for investors.

Current Quarter Estimates for OKTA

In the past 30 days, seven estimates have gone higher for Okta while none have gone lower in the same time period. The trend has been pretty favorable too, with estimates narrowing from a loss of 11 cents a share 30 days ago, to a loss of 8 cents today, a move of 27.3%.

Current Year Estimates for OKTA

Meanwhile, Okta’s current year figures are also looking quite promising, with seven estimates moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, narrowing from a loss of 47 cents per share 30 days ago to a loss of 36 cents per share today, an increase of 23.4%.

Okta, Inc. Price and Consensus

Okta, Inc. Price and Consensus | Okta, Inc. Quote

Bottom Line

The stock has also started to move higher lately, adding 17.3% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So, investors may want to consider this Zacks Rank #3 (Hold) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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