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Okta (OKTA) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Okta (OKTA) closed at $127.36 in the latest trading session, marking a +0.39% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.25%. At the same time, the Dow added 0.39%, and the tech-heavy Nasdaq lost 0.09%.

Prior to today's trading, shares of the cloud identity management company had lost 8.08% over the past month. This has lagged the Computer and Technology sector's loss of 5.18% and the S&P 500's loss of 5.58% in that time.

Wall Street will be looking for positivity from OKTA as it approaches its next earnings report date. This is expected to be August 28, 2019. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $131.09 million, up 38.59% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.46 per share and revenue of $546.36 million, which would represent changes of -43.75% and +36.85%, respectively, from the prior year.

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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering 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 #3 (Hold) 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 45, which puts it in the top 18% 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.

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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