Is Okta (OKTA) Outperforming Other Computer and Technology Stocks This Year?

For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Okta (OKTA) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Okta is a member of our Computer and Technology group, which includes 608 different companies and currently sits at #8 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Okta is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for OKTA's full-year earnings has moved 74.6% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

According to our latest data, OKTA has moved about 42.8% on a year-to-date basis. In comparison, Computer and Technology companies have returned an average of -10.8%. This shows that Okta is outperforming its peers so far this year.

CyberAgent (CYGIY) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 19.4%.

Over the past three months, CyberAgent's consensus EPS estimate for the current year has increased 6.7%. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Okta belongs to the Security industry, which includes 5 individual stocks and currently sits at #89 in the Zacks Industry Rank. On average, stocks in this group have gained 12.7% this year, meaning that OKTA is performing better in terms of year-to-date returns.

CyberAgent, however, belongs to the Internet - Services industry. Currently, this 37-stock industry is ranked #168. The industry has moved -13.4% so far this year.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to Okta and CyberAgent as they could maintain their solid performance.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research