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Okta (OKTA) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Okta (OKTA) closed at $247.18, marking a +1.04% move from the previous day.

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This story originally appeared on Zacks

In the latest trading session, Okta (OKTA) closed at $247.18, marking a +1.04% move from the previous day. This change outpaced the S&P 500's 0.2% gain on the day.

- Zacks

Heading into today, shares of the cloud identity management company had gained 3.07% over the past month, lagging the Computer and Technology sector's gain of 4.44% and the S&P 500's gain of 5.66% in that time.

OKTA will be looking to display strength as it nears its next earnings release. In that report, analysts expect OKTA to post earnings of -$0.23 per share. This would mark a year-over-year decline of 675%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $327.33 million, up 50.58% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.75 per share and revenue of $1.25 billion. These totals would mark changes of -781.82% and +49.55%, respectively, from last year.

Investors might also notice 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.02% lower within the past month. OKTA is holding a Zacks Rank of #5 (Strong Sell) right now.

The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 240, which puts it in the bottom 6% 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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