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Okta (OKTA) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Okta (OKTA) closed the most recent trading day at $131.99, moving -0.48% from the previous trading session. This change lagged the S&P 500's 0.26% loss on the day. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq lost 0.24%.

Coming into today, shares of the cloud identity management company had gained 8.34% in the past month. In that same time, the Computer and Technology sector gained 5.19%, while the S&P 500 gained 2.87%.

OKTA will be looking to display strength as it nears its next earnings release. In that report, analysts expect OKTA to post earnings of -$0.10 per share. This would mark year-over-year growth of 33.33%. Meanwhile, our latest consensus estimate is calling for revenue of $131.09 million, up 38.59% from the prior-year quarter.

OKTA's full-year Zacks Consensus Estimates are calling for earnings of -$0.46 per share and revenue of $546.36 million. These results would represent year-over-year changes of -43.75% and +36.85%, respectively.

It is also important to note the recent changes to analyst estimates for OKTA. These revisions help to show the ever-changing nature of near-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 currently has a Zacks Rank of #3 (Hold).

The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% 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.

To follow OKTA in the coming trading sessions, be sure to utilize Zacks.com.


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