Coinbase Global, Inc. (COIN) Stock Sinks As Market Gains: Here's Why

Coinbase Global, Inc. (COIN) closed the most recent trading day at $353.30, moving -5.81% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.52%. On the other hand, the Dow registered a gain of 1%, and the technology-centric Nasdaq increased by 0.52%.

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The stock of company has risen by 50.73% in the past month, leading the Finance sector's gain of 3.62% and the S&P 500's gain of 5.95%.

The upcoming earnings release of Coinbase Global, Inc. will be of great interest to investors. The company is predicted to post an EPS of $0.91, indicating a 14.95% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.54 billion, reflecting a 6.25% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.96 per share and a revenue of $6.95 billion, signifying shifts of -61.05% and +5.88%, respectively, from the last year.

Any recent changes to analyst estimates for Coinbase Global, Inc. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 3.56% higher within the past month. Coinbase Global, Inc. is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Coinbase Global, Inc. is holding a Forward P/E ratio of 126.61. This represents a premium compared to its industry average Forward P/E of 11.93.

We can additionally observe that COIN currently boasts a PEG ratio of 47.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Financial - Miscellaneous Services stocks are, on average, holding a PEG ratio of 1.03 based on yesterday's closing prices.

The Financial - Miscellaneous Services industry is part of the Finance sector. With its current Zacks Industry Rank of 94, this industry ranks in the top 39% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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

Zacks Investment Research