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

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Okta (OKTA - Free Report) closed the most recent trading day at $106.80, moving -0.44% from the previous trading session. This move lagged the S&P 500's daily loss of 0.12%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.02%.

Heading into today, shares of the cloud identity management company had lost 9.91% over the past month, lagging the Computer and Technology sector's gain of 5.66% and the S&P 500's gain of 4.42% in that time.

Wall Street will be looking for positivity from OKTA as it approaches its next earnings report date. This is expected to be December 5, 2019. On that day, OKTA is projected to report earnings of -$0.12 per share, which would represent a year-over-year decline of 200%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $143.38 million, up 35.8% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.43 per share and revenue of $561.46 million, which would represent changes of -34.38% and +40.63%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for OKTA. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. OKTA is holding a Zacks Rank of #2 (Buy) right now.

The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 38, putting it in the top 15% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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