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COUPA SOFTWARE (COUP) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, COUPA SOFTWARE (COUP) closed at $94.05, marking a -0.1% move from the previous day. This change lagged the S&P 500's 0.07% gain on the day. At the same time, the Dow lost 0.21%, and the tech-heavy Nasdaq gained 0.13%.

Heading into today, shares of the company had gained 45.53% over the past month, outpacing the Computer and Technology sector's gain of 7.08% and the S&P 500's gain of 5.36% in that time.

Investors will be hoping for strength from COUP as it approaches its nex t earnings release, which is expected to be March 11, 2019. The company is expected to report EPS of $0, down 100% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $68.07 million, up 26.63% from the year-ago period.

Investors might also notice recent changes to analyst estimates for COUP. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. COUP currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that COUP has a Forward P/E ratio of 431.18 right now. Its industry sports an average Forward P/E of 49.79, so we one might conclude that COUP is trading at a premium comparatively.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% 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.

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

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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.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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