Okta (OKTA) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Okta (OKTA) closed at $80.67, marking a -0.97% move from the previous day. This move lagged the S&P 500's daily loss of 0.94%. Meanwhile, the Dow lost 0.87%, and the Nasdaq, a tech-heavy index, lost 1.18%.
Prior to today's trading, shares of the cloud identity management company had gained 18.44% over the past month. This has outpaced the Computer and Technology sector's gain of 10.32% and the S&P 500's gain of 8.01% in that time.
Investors will be hoping for strength from OKTA as it approaches its next earnings release, which is expected to be March 7, 2019. On that day, OKTA is projected to report earnings of -$0.08 per share, which would represent year-over-year growth of 20%. Meanwhile, our latest consensus estimate is calling for revenue of $107.94 million, up 38.83% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for OKTA. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.33% lower. OKTA is currently a Zacks Rank #3 (Hold).
The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% 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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