Coinbase Global, Inc. (COIN) concluded its latest trading session at $302.20, reflecting a modest increase of 1.05% from the previous day’s close. This uptick positions the company’s performance favorably against broader market indices, as the S&P 500 ended the day with a gain of 0.21%. Other indices also experienced upward movements, with the Dow increasing by 0.25% and the Nasdaq, heavily weighted towards technology stocks, appreciating by 0.45%.
However, looking at a longer timeframe, Coinbase’s shares have declined by 3.69% over the past month. This decline contrasts with the performance of the Finance sector, which has registered a gain of 3.47%, and the overall S&P 500, which has seen an increase of 3.07%. Market watchers are now focused on the forthcoming financial results expected from Coinbase, with analysts predicting earnings per share (EPS) of $1.04. This would indicate robust growth of 67.74% compared to the same quarter in the previous year. Additionally, quarterly revenues are anticipated to reach $1.71 billion, marking a significant year-over-year increase of 42.19%.
For the entire fiscal year, Zacks Consensus Estimates suggest earnings of $7.01 per share and total revenue of $7.03 billion. These figures denote a decline of 7.76% in earnings but a growth of 7.16% in revenue compared to the last fiscal year.
Investors are advised to keep an eye on any recent adjustments in analyst estimates for Coinbase, as such revisions can signal shifts in short-term business trends, influencing stock performance. These positive estimate revisions typically reflect an optimistic outlook among analysts regarding the company’s profitability.
The Zacks Rank, a system designed to leverage changes in analyst estimates for actionable investing, rates Coinbase with a score of #3 (Hold). This grading system, ranging from #1 (Strong Buy) to #5 (Strong Sell), is backed by a robust historical track record of outperformance, where top-rated stocks have averaged a 25% annual return since 1988. Over the last month, the Zacks Consensus EPS estimate for Coinbase has risen by 9.93%.
In terms of valuation, Coinbase is currently trading at a Forward P/E ratio of 42.66, which is significantly higher than the average Forward P/E of 11.9 for its industry. The Financial – Miscellaneous Services industry to which Coinbase belongs holds a Zacks Industry Rank of 53, placing it within the top 22% of over 250 industries evaluated. This ranking signifies a favorable position, as industries in the top half typically outperform those in the bottom half by a ratio of 2 to 1.
