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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 $132.39, marking a +1.89% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq added 0.38%.

Coming into today, shares of the cloud identity management company had lost 2.96% in the past month. In that same time, the Computer and Technology sector lost 3.22%, while the S&P 500 lost 3.57%.

Investors will be hoping for strength from OKTA as it approaches its next earnings release, which is expected to be August 28, 2019. The company is expected to report EPS of -$0.10, up 33.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $131.09 million, up 38.59% from the prior-year quarter.

OKTA's full-year Zacks Consensus Estimates are calling for earnings of -$0.46 per share and revenue of $546.36 million. These results would represent year-over-year changes of -43.75% and +36.85%, respectively.

It is also important to note the recent changes to analyst estimates for OKTA. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. OKTA is currently sporting a Zacks Rank of #3 (Hold).

The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% 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.

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


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