Okta (OKTA) Stock Sinks As Market Gains: What You Should Know
Okta (OKTA) closed at $204.05 in the latest trading session, marking a -1.31% move from the prior day. This change lagged the S&P 500's 0.91% gain on the day. Elsewhere, the Dow gained 0.85%, while the tech-heavy Nasdaq added 0.59%.
Heading into today, shares of the cloud identity management company had gained 9.91% over the past month, outpacing the Computer and Technology sector's gain of 8.52% and the S&P 500's gain of 5.26% 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 -$0.02, up 60% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $190.56 million, up 35.65% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.19 per share and revenue of $791.61 million. These totals would mark changes of +38.71% and +35.07%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for OKTA. Recent revisions tend to reflect the latest near-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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. OKTA currently has a Zacks Rank of #3 (Hold).
The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% 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.
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