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

Okta (OKTA) closed at $242.56 in the latest trading session, marking a +0.76% move from the prior day. This change outpaced the S&P 500's 0.75% gain on the day.

Prior to today's trading, shares of the cloud identity management company had gained 14.25% over the past month. This has outpaced the Computer and Technology sector's gain of 6.19% and the S&P 500's gain of 2.91% in that time.

Wall Street will be looking for positivity from OKTA as it approaches its next earnings report date. The company is expected to report EPS of -$0.35, down 600% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $295.12 million, up 47.23% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.13 per share and revenue of $1.21 billion. These totals would mark changes of -1127.27% and +44.95%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for OKTA. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 currently a Zacks Rank #4 (Sell).

The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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