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

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Zacks Equity Research
·2 min read
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Okta (OKTA) closed the most recent trading day at $279.89, moving -0.45% from the previous trading session. This move lagged the S&P 500's daily loss of 0.11%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.14%.

Coming into today, shares of the cloud identity management company had gained 11.78% in the past month. In that same time, the Computer and Technology sector gained 7.49%, while the S&P 500 gained 2.46%.

OKTA will be looking to display strength as it nears its next earnings release, which is expected to be March 3, 2021. In that report, analysts expect OKTA to post earnings of -$0.01 per share. This would mark no growth from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $221.57 million, up 32.41% from the year-ago period.

It is also important to note the 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 199, putting it in the bottom 22% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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