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

Zacks Equity Research

Okta (OKTA) closed the most recent trading day at $135.29, moving -0.97% from the previous trading session. This change lagged the S&P 500's 0.46% gain on the day. At the same time, the Dow added 0.9%, and the tech-heavy Nasdaq gained 0.59%.

Heading into today, shares of the cloud identity management company had gained 4.8% over the past month, lagging the Computer and Technology sector's gain of 5.19% and outpacing the S&P 500's gain of 4.04% in that time.

OKTA will be looking to display strength as it nears its next earnings release. On that day, OKTA is projected to report earnings of -$0.10 per share, which would represent 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.

Any recent changes to analyst estimates for OKTA should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. OKTA is currently sporting 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 49, putting it in the top 20% 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.

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

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