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Why Coupang, Inc. (CPNG) Dipped More Than Broader Market Today

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Coupang, Inc. (CPNG - Free Report) closed the latest trading day at $25.05, indicating a -0.32% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.18%. On the other hand, the Dow registered a loss of 0.8%, and the technology-centric Nasdaq increased by 0.27%.

Heading into today, shares of the company had gained 2.24% over the past month, lagging the Retail-Wholesale sector's gain of 3.95% and the S&P 500's gain of 4.46% in that time.

The investment community will be closely monitoring the performance of Coupang, Inc. in its forthcoming earnings report. The company's upcoming EPS is projected at $0.02, signifying a 60% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $7.79 billion, indicating a 26.04% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.02 per share and a revenue of $30.57 billion, representing changes of -107.69% and +25.36%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Coupang, Inc. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Coupang, Inc. currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Coupang, Inc. has a Forward P/E ratio of 186.15 right now. Its industry sports an average Forward P/E of 23.63, so one might conclude that Coupang, Inc. is trading at a premium comparatively.

It is also worth noting that CPNG currently has a PEG ratio of 184.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.05.

The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 70, this industry ranks in the top 28% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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