Okta (OKTA) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, Okta (OKTA) closed at $107.98, marking a -1.56% move from the previous day. This move lagged the S&P 500's daily loss of 0.28%. Elsewhere, the Dow lost 0.39%, while the tech-heavy Nasdaq lost 0.45%.

Heading into today, shares of the cloud identity management company had gained 7.82% over the past month, outpacing the Computer and Technology sector's loss of 4.73% and the S&P 500's loss of 1.59% in that time.

OKTA will be looking to display strength as it nears its next earnings release, which is expected to be May 30, 2019. In that report, analysts expect OKTA to post earnings of -$0.21 per share. This would mark a year-over-year decline of 133.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $116.66 million, up 39.51% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.49 per share and revenue of $533.75 million, which would represent changes of -53.13% and +33.69%, respectively, from the prior year.

Any recent changes to analyst estimates for OKTA should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. OKTA is currently a Zacks Rank #4 (Sell).

The Internet - Software and Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 17% 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.

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


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