Coupa Software (COUP) Gains As Market Dips: What You Should Know
In the latest trading session, Coupa Software (COUP) closed at $64.43, marking a +1.88% move from the previous day. This change outpaced the S&P 500's 0.09% loss on the day. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq added 0.22%.
Heading into today, shares of the company had gained 28.25% over the past month, outpacing the Computer and Technology sector's gain of 7.08% and the S&P 500's gain of 5.55% 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 12, 2022. In that report, analysts expect Coupa Software to post earnings of $0.11 per share. This would mark a year-over-year decline of 64.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $212.36 million, up 14.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.45 per share and revenue of $840.75 million, which would represent changes of -45.78% and +15.92%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Coupa Software. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Coupa Software's current valuation metrics, including its Forward P/E ratio of 140.53. Its industry sports an average Forward P/E of 47.14, so we one might conclude that Coupa Software is trading at a premium comparatively.
Investors should also note that COUP has a PEG ratio of 6.21 right now. 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. COUP's industry had an average PEG ratio of 2.31 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 61, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow COUP in the coming trading sessions, be sure to utilize Zacks.com.
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Coupa Software, Inc. (COUP) : Free Stock Analysis Report
