Coupa Software (COUP) Outpaces Stock Market Gains: What You Should Know
Coupa Software (COUP) closed at $203.13 in the latest trading session, marking a +0.92% move from the prior day. This move outpaced the S&P 500's daily gain of 0.23%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.09%.
Heading into today, shares of the company had lost 16.53% over the past month, lagging the Computer and Technology sector's gain of 3.69% and the S&P 500's gain of 3.34% in that time.
Investors will be hoping for strength from Coupa Software as it approaches its next earnings release, which is expected to be December 6, 2021. In that report, analysts expect Coupa Software to post earnings of $0.02 per share. This would mark a year-over-year decline of 88.89%. Our most recent consensus estimate is calling for quarterly revenue of $177.61 million, up 33.58% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.29 per share and revenue of $707.05 million, which would represent changes of -62.34% and +30.54%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Coupa Software. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Coupa Software is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Coupa Software currently has a Forward P/E ratio of 702.14. This represents a premium compared to its industry's average Forward P/E of 66.54.
It is also worth noting that COUP currently has a PEG ratio of 28.92. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 4.04 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 28% of all 250+ industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.