Okta (OKTA) Upgraded to Buy: Here's Why

Core Viewpoint - Okta (OKTA) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Okta suggest an improvement in the company's underlying business, likely leading to increased stock prices [5]. Recent Performance and Projections - For the fiscal year ending January 2026, Okta is expected to earn $3.27 per share, reflecting a year-over-year increase of 16.4% [8]. - Over the past three months, the Zacks Consensus Estimate for Okta has surged by 92.4%, indicating strong upward revisions by analysts [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating [9][10]. - Okta's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].