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

Okta (OKTA Free Report) closed at $255.70 in the latest trading session, marking a +0.57% move from the prior day. This move outpaced the S&P 500’s daily gain of 0.42%.

Heading into today, shares of the cloud identity management company had gained 9.63% over the past month, outpacing the Computer and Technology sector’s gain of 6.71% and the S&P 500’s gain of 7.03% in that time.

Investors will be hoping for strength from OKTA as it approaches its next earnings release, which is expected to be December 1, 2021. The company is expected to report EPS of -$0.23, down 675% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $327.33 million, up 50.58% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.75 per share and revenue of $1.25 billion, which would represent changes of -781.82% and +49.55%, respectively, from the prior year.

Any recent changes to analyst estimates for OKTA should also be noted by investors. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. OKTA is currently a Zacks Rank #5 (Strong Sell).

The Internet – Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 32% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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