In the latest trading session, Okta (OKTA) closed at $107.46, marking a +0.2% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.08%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq lost 0.59%.
Prior to today's trading, shares of the cloud identity management company had gained 8.93% over the past month. This has outpaced the Computer and Technology sector's gain of 4.71% and the S&P 500's gain of 2.7% in that time.
Wall Street will be looking for positivity from OKTA as it approaches its next earnings report date. In that report, analysts expect OKTA to post earnings of -$0.12 per share. This would mark a year-over-year decline of 200%. Our most recent consensus estimate is calling for quarterly revenue of $143.38 million, up 35.8% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.43 per share and revenue of $561.46 million, which would represent changes of -34.38% and +40.63%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for OKTA. These recent revisions tend to reflect the evolving nature of short-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 #2 (Buy).
The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 17, putting it in the top 7% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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