Okta (OKTA) outpaces stock market gains: what you need to know

Okta (OKTA) closed the last trading day at $84.22, +1.43% from the previous trading session. The change outpaced the S&P 500’s 0.02% gain on the day. Meanwhile, the Dow Jones gained 0.03% and the tech-heavy Nasdaq lost 0.16%.

Today, shares of the cloud identity management company were down 40.17% over the past month. Meanwhile, the IT & Technology sector lost 14.21%, while the S&P 500 lost 12.5%.

Wall Street will be looking for positivity from Okta as its next earnings report date nears. That should be June 2, 2022. On that day, Okta is expected to report earnings of -$0.34 per share, which would represent a 240% year-over-year decline. Meanwhile, our latest consensus estimate calls for revenue of $388.98 million, up 54.97% from the prior year quarter.

For the full year, our Zacks consensus estimates call for earnings of -$1.26 per share and revenue of $1.78 billion, which would represent changes of -173.91% and +37 .18%, respectively, compared to the previous year.

Any recent changes in analyst estimates for Okta should also be noted by investors. Recent revisions tend to reflect the latest short-term trading trends. Therefore, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Our research shows that these estimate changes are directly correlated to short-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes into account these estimation changes and provides a clear and actionable scoring model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven track record of outperformance, with #1 stocks returning an average of +25% per year since 1988. Over the past few months, the Zacks Consensus EPS estimate has fallen 0.13%. Okta currently holds a Zacks rank of #3 (Hold).

The Internet – Software and Services industry is part of the IT and Technology sector. This industry currently has a Zacks Industry Rank of 161, which places it in the bottom 37% of all 250+ industries.

The Zacks Industry Ranking assesses the strength of our industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

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

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About Mariel Baker

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