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

·2-min read

Okta (OKTA) closed the most recent trading day at $221.96, moving -1.61% from the previous trading session. This change lagged the S&P 500's daily gain of 1.22%.

Prior to today's trading, shares of the cloud identity management company had lost 13.2% over the past month. This has lagged the Computer and Technology sector's loss of 3.53% and the S&P 500's loss of 1.49% in that time.

Investors will be hoping for strength from OKTA as it approaches 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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.45 per share and revenue of $1.1 billion. These totals would mark changes of -509.09% and +31.45%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for OKTA. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. OKTA is holding a Zacks Rank of #4 (Sell) right now.

The Internet - Software and Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 7% 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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