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

Zacks Equity Research

Okta (OKTA) closed at $127.88 in the latest trading session, marking a -1.18% move from the prior day. This change lagged the S&P 500's 0.16% loss on the day. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, lost 0.24%.

Coming into today, shares of the cloud identity management company had gained 28.4% in the past month. In that same time, the Computer and Technology sector gained 5.67%, while the S&P 500 gained 4.31%.

Wall Street will be looking for positivity from OKTA as it approaches its next earnings report date. This is expected to be December 5, 2019. On that day, OKTA is projected to report earnings of -$0.12 per share, which would represent a year-over-year decline of 200%. Our most recent consensus estimate is calling for quarterly revenue of $143.45 million, up 35.87% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.43 per share and revenue of $561.62 million, which would represent changes of -34.38% and +40.67%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for OKTA. 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. 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 has moved 0.13% higher within the past month. OKTA currently has a Zacks Rank of #4 (Sell).

The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% 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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