This cloud stock could break above a 3-year resistance level, charts show
We just added Okta to our "fast money" model at Inside Edge Capital ahead of a possible three-year technical resistance breakout, as the company is projected to also reach fundamental profitability this year. OKTA is a leader in the identity and access management (IAM) space. It offers products to secure access within cloud services and remote work, a trend that we now know is not going away. The company is investing in AI to enhance its offerings that safeguard generative AI systems and non-human identities. Specifically, OKTA announced capabilities to help businesses incorporate AI agents and other "non-human identities," or NHIs. Research from Deloitte forecasts that by 2027, 50% of companies using AI will also be using generative AI agents in some way. The company recently got a boost on news it would be added to the S & P 400 midcap index, sending the stock higher by 7%. That put it within reach of the three-year price ceiling around the $115 level. This resistance level has bested the stock 3 times. But in addition to being added to the midcap index, analyst now expect a sharp turnaround in earnings, signaling it might be time to buy. This stock also has an additional tailwind being part of the "Software & Services" group that has several cutting edge companies brining additional addition to these names. In the Active Opps portfolio at Inside Edge Capital, I'm holding a pretty sizable 5.26% allocation from $112.88. Should the broader market stabilize and push through the daily moving averages, I would look to increase my size to around 7% if we get a break through the $115 resistance level and trail stop losses to my original entry price. -Todd Gordon, Founder of Inside Edge Capital, LLC DISCLOSURES: Gordon owns OKTA in his wealth management company Inside Edge Capital, LLC All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
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