Okta has put up some amazing numbers this past year. For example, earnings growth ranged from 110% to more than 1,000% over the most recent four quarters. No surprise then that the Relative Strength (RS) Rating for Okta stock on Tuesday jumped from 69 to 76.
Okta Stock Nearing Possible Breakout
The upgraded 76 RS Rating shows that Okta stock bested 76% of all stocks for price performance this past year. The rating hike brings Okta stock within a few points of a benchmark.
Market research shows top-performing stocks often have an 80 or better RS Rating as they begin their largest price moves. See if San Francisco-based Okta can continue to show renewed price strength and hit that benchmark.
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Okta stock was trading near 100 Tuesday afternoon. It's working on a consolidation with a 114.50 buy point, a high it reached in early March. Okta hit a 44.12 low in early November 2022 amid the pandemic market slowdown. It's more than doubled since then, a bullish sign.
However, it has a ways to go to recover its all-time high. Okta went public in April 2017 and closed at 26.05 shortly after its IPO. It marched higher for the next four years and hit an all-time high 294 in mid-February 2021. Then it fell in sync with the market until its November 2022 bottom.
Solid Earnings, Revenue Gains
Meanwhile Okta posted 195% earnings growth in its most recent quartre, to 65 cents per share. Revenue increased 19% to $617 million. The prior quarter it recorded 110% EPS growth on 19% higher sales.
Okta stock earns the No. 7 rank among its peers in the 33-stock Computer Software-Security industry group. CrowdStrike , CyberArk Software and Zscaler are among the top five highly rated stocks in the group.
IBD's proprietary Relative Strength Rating measures technical performance by using a 1 (worst) to 99 (best) score that identifies how a stock's price performance over the trailing 52 weeks compares to other publicly traded companies.
Please follow James DeTar on X, formerly known as Twitter, @JimDeTar
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