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Coupa Software (COUP) Soars 28.9%: Is Further Upside Left in the Stock?

Coupa Software (COUP) shares soared 28.9% in the last trading session to close at $58.93. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15.8% loss over the past four weeks.

Coupa Software boasts one of the highest adoption rates in the industry with its easy-to-use operations. It offers prescriptive recommendations, from saving opportunities to supplier insights, by leveraging collective AI across the entire Coupa Software platform for greater agility. Its unified cloud platform makes it faster to deploy, accelerating the time to deliver value to customers.

Solid momentum in Coupa Advantage Express, Strategic Sourcing, Risk Assess and Source Together solutions is anticipated to bolster company’s subscription services revenues in the quarters ahead. Further, the company has been adding new capabilities to Coupa Supplier Insights and Coupa BSM solutions, which is anticipated to boost adoption.

This company is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of -67.7%. Revenues are expected to be $212.36 million, up 14.3% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Coupa Software, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on COUP going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Coupa Software is part of the Zacks Internet - Software industry. Couchbase, Inc. (BASE), another stock in the same industry, closed the last trading session 3.6% higher at $12.64. BASE has returned -5.1% in the past month.

For Couchbase, Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.33. This represents a change of -13.8% from what the company reported a year ago. Couchbase, Inc. currently has a Zacks Rank of #3 (Hold).

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