Okta (OKTA) Dips More Than Broader Markets: What You Should Know
Okta (OKTA) closed at $196.18 in the latest trading session, marking a -1.74% move from the prior day. This change lagged the S&P 500's daily loss of 0.8%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 1.69%.
Coming into today, shares of the cloud identity management company had lost 0.21% in the past month. In that same time, the Computer and Technology sector gained 3.6%, while the S&P 500 gained 5.66%.
Investors will be hoping for strength from OKTA as it approaches its next earnings release, which is expected to be August 27, 2020. The company is expected to report EPS of -$0.02, up 60% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $190.56 million, up 35.65% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.19 per share and revenue of $791.61 million, which would represent changes of +38.71% and +35.07%, 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 198, putting it in the bottom 23% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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