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

Okta (OKTA) closed at $138.76 in the latest trading session, marking a -0.53% move from the prior day. This move lagged the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.44%, and the tech-heavy Nasdaq lost 0.67%.

Coming into today, shares of the cloud identity management company had gained 11.58% in the past month. In that same time, the Computer and Technology sector gained 3.8%, while the S&P 500 gained 1.91%.

Investors will be hoping for strength from OKTA as it approaches its next earnings release, which is expected to be March 5, 2020. 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.

It is also important to note the recent changes to analyst estimates for OKTA. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 46, putting it in the top 19% 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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Zacks Investment Research