Okta (OKTA) Stock Sinks As Market Gains: What You Should Know
Okta (OKTA) closed the most recent trading day at $129.96, moving -0.28% from the previous trading session. This move lagged the S&P 500's daily gain of 0.42%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.66%.
Coming into today, shares of the cloud identity management company had gained 21.27% in the past month. In that same time, the Computer and Technology sector gained 4.8%, while the S&P 500 gained 4.09%.
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. The company is expected to report EPS of -$0.12, down 200% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $143.42 million, up 35.84% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.43 per share and revenue of $561.58 million. These totals would mark changes of -34.38% and +40.66%, 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. As a result, we can interpret positive estimate revisions as a good sign for 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. OKTA is holding a Zacks Rank of #4 (Sell) right now.
The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 38% 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.