Okta OKTA shares ended the last trading session 3.3% higher at $101.1. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 0.2% loss over the past four weeks.
Okta is benefiting from an expanding partner base, along with a strong backlog and an innovative portfolio.
This cloud identity management company is expected to post quarterly earnings of $0.84 per share in its upcoming report, which represents a year-over-year change of +16.7%. Revenues are expected to be $711.04 million, up 10.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Okta, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on OKTA going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Okta belongs to the Zacks Security industry. Another stock from the same industry, SentinelOne S, closed the last trading session 0.5% higher at $19.56. Over the past month, S has returned 8.1%.
For SentinelOne, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.03. This represents a change of +200% from what the company reported a year ago. SentinelOne currently has a Zacks Rank of #3 (Hold).
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SentinelOne, Inc. (S) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
