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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 $128.40, moving -0.13% from the previous trading session. This change lagged the S&P 500's daily gain of 0.84%. Elsewhere, the Dow gained 0.92%, while the tech-heavy Nasdaq added 1.06%.

Heading into today, shares of the cloud identity management company had gained 11.41% over the past month, outpacing the Computer and Technology sector's gain of 6.54% and the S&P 500's gain of 3.95% in that time.

Wall Street will be looking for positivity from OKTA as it approaches its next earnings report date. The company is expected to report EPS of -$0.05, down 25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $155.77 million, up 34.9% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.36 per share and revenue of $574.57 million, which would represent changes of -12.5% and +43.91%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for OKTA. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate has moved 0.47% higher within the past month. OKTA is currently a Zacks Rank #3 (Hold).

The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% 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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