Okta (OKTA) closed the most recent trading day at $204. 41, moving +1. 19% from the previous trading session. This change outpaced the S&P 500’s 0. 08% gain on the day. The Dow lost 0. 56%, while the tech-heavy Nasdaq lost 0.42%.
Heading into today, shares of the cloud identity management company had lost 4. 63% over the past month, outpacing the Computer and Technology sector’s loss of 5. 11% and lagging the S&P 500’s gain of 0. 22% in that time.
Investors are hoping for Okta’s strength as it nears its next earnings release. Expected EPS for Okta to be -$0 24, down 500% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $359. 38 million, up 53.1% from the prior-year quarter.
Looking at the whole year, our Zacks Consensus estimates suggest that analysts expect earnings of -$0. 52 per share and revenue of $1. 28 billion. These totals would mark changes of -572. 73% and +52. 81%, respectively, from last year.
It is important to note recent changes in analyst estimates for Okta. Recent revisions tend reflect the most recent near-term business trends. Positive revisions to estimates reflect optimism among analysts about the company’s future business prospects and profitability.
Our research has shown that these estimates changes are directly related to near-term stock price movements. This is a great opportunity for investors to capitalize by using Zacks Rank. This model takes into account these estimates and gives investors 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 last month, the Zacks Consensus EPS estimate remained flat. Okta currently has a Zacks Rank #2 (Buy).
The Computer and Technology sector includes the Internet – Software and Services. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 34% of all 250+ industries. The Zacks Industry Rank measures the strength of industry groups by measuring their average Zacks Rank. 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 th