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Coinbase Global, Inc. (COIN) Falls More Steeply Than Broader Market: What Investors Need to Know

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Coinbase Global, Inc. (COIN - Free Report) closed at $210.72 in the latest trading session, marking a -1.4% move from the prior day. This change lagged the S&P 500's 0.05% loss on the day. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.18%.

The company's shares have seen an increase of 25.56% over the last month, surpassing the Business Services sector's gain of 3.48% and the S&P 500's gain of 2.76%.

Market participants will be closely following the financial results of Coinbase Global, Inc. in its upcoming release. The company plans to announce its earnings on October 30, 2024. The company is forecasted to report an EPS of $0.35, showcasing a 3600% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.25 billion, indicating an 85.87% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.18 per share and a revenue of $5.65 billion, signifying shifts of +1300% and +81.82%, respectively, from the last year.

Any recent changes to analyst estimates for Coinbase Global, Inc. should also be noted by investors. These revisions help to show the ever-changing nature of 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.45% decrease. At present, Coinbase Global, Inc. boasts a Zacks Rank of #3 (Hold).

In the context of valuation, Coinbase Global, Inc. is at present trading with a Forward P/E ratio of 41.26. For comparison, its industry has an average Forward P/E of 17.83, which means Coinbase Global, Inc. is trading at a premium to the group.

The Financial Transaction Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 40% of all 250+ industries.

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

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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