Okta (OKTA) Gains But Lags Market: What You Should Know
Okta (OKTA) closed at $222.32 in the latest trading session, marking a +0.61% move from the prior day. This change lagged the S&P 500's 0.72% gain on the day. Meanwhile, the Dow gained 0.89%, and the Nasdaq, a tech-heavy index, added 1.47%.
Heading into today, shares of the cloud identity management company had gained 6.36% over the past month, lagging the Computer and Technology sector's gain of 7.08% and outpacing the S&P 500's gain of 5.85% in that time.
OKTA will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.17, down 240% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $190.56 million, up 35.65% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.19 per share and revenue of $791.61 million, which would represent changes of +38.71% and +35.07%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for OKTA. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 currently has a Zacks Rank of #4 (Sell).
The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 124, which puts it in the top 49% 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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.