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Okta (OKTA) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Okta (OKTA - Free Report) closed at $138.66, marking a +0.46% move from the previous day. This change outpaced the S&P 500's 0.36% gain on the day. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 0.27%.

Prior to today's trading, shares of the cloud identity management company had gained 4.24% over the past month. This has lagged the Computer and Technology sector's gain of 4.78% and outpaced the S&P 500's gain of 3.98% in that time.

Investors will be hoping for strength from OKTA as it approaches its next earnings release. The company is expected to report EPS of -$0.10, up 33.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $131.09 million, up 38.59% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.46 per share and revenue of $546.36 million. These totals would mark changes of -43.75% and +36.85%, respectively, from last year.

Any recent changes to analyst estimates for OKTA should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

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 54, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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