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

In the latest trading session, Okta (OKTA) closed at $237.27, marking a +1.23% move from the previous day. This change outpaced the S&P 500's 0.74% gain on the day.

Coming into today, shares of the cloud identity management company had lost 1.72% in the past month. In that same time, the Computer and Technology sector gained 3.03%, while the S&P 500 gained 3.21%.

OKTA will be looking to display strength as it nears its next earnings release, which is expected to be May 26, 2021. The company is expected to report EPS of -$0.20, down 185.71% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $238.61 million, up 30.49% from the prior-year quarter.

OKTA's full-year Zacks Consensus Estimates are calling for earnings of -$0.50 per share and revenue of $1.1 billion. These results would represent year-over-year changes of -554.55% and +31.45%, respectively.

Any recent changes to analyst estimates for OKTA should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection has moved 2.08% lower. 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 241, which puts it in the bottom 6% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow OKTA in the coming trading sessions, be sure to utilize Zacks.com.


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