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Here's Why You Should Add Coupa Software to Your Portfolio Now

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Coupa Software Inc. is one technology stock that continues to exhibit strength in expanding partnership and customer base. In fact, the stock is a lucrative investment option at the moment.

Earnings estimates for Coupa Software have exhibited an uptrend, reflecting optimism in the stock’s prospects. The Zacks Consensus Estimate for the company’s current-year earnings has moved up from a loss of 7 cents to earnings of 12 cents per share over the past 60 days. Let us delve deeper and analyze the factors that make this Zacks Rank #1 (Strong Buy) stock a hot pick. You can see the complete list of today’s Zacks #1 Rank stocks here.

Notably, the company’s shares have gained 92.6% year over year, substantially outperforming the industry’s rally of 4.6%.

What Makes the Stock an Attractive Pick?

Coupa Software provides a unified, cloud-based spend management platform that aids enterprises keep a tab on daily expenditures The company’s expanding relationship with Amazon Web Services (“AWS”) bodes well for the company. The deal will enable customers to easily configure their AWS account to send invoices into Coupa Software's platform for touchless digital processing. This move provides greater visibility and efficiency in IT cloud spending.

Further, Coupa Software is benefiting from expanding customer base on the back of growing adoption of spend management platform. Notably, the company added many new customers namely Telenor, Leprino Foods, US Concrete, Wabash National Corporation, Hubert Burda Media, Benteler, to name a few.

Moreover, an expanding partner base is anticipated to drive the top line. The company also launched R20 that leverages Community Intelligence to reduce global supply chain risk and provides customers with new capabilities to optimize spending.

The company’s Zacks Consensus Estimate for fiscal 2019 earnings of 12 cents per share reflects year-over-year growth of 157.1%. Moreover, earnings are expected to register an improvement of 79.6% in fiscal 2020.

The company beat the Zacks Consensus Estimate in the trailing four quarters, recording average positive surprise of 181.6%.

Moreover, the company provided an encouraging view for the forthcoming quarter. For fourth-quarter fiscal 2019, revenues are anticipated between $67.8 and $68.3 million. The Zacks Consensus Estimate for revenues is currently pegged at $68 million.

For fiscal 2019, total revenues are now anticipated between $253 million and $253.5 million. The Zacks Consensus Estimate for revenues is currently pegged at $252 million.

We expect the trend to continue and drive the overall financial performance of Coupa Software.

Other Stocks to Consider

Some other top-ranked stocks in the broader technology sector are Infineon Technologies AG (IFNNY - Free Report) , Marvell Technology Group Ltd. (MRVL - Free Report) and STMicroelectronics N.V. (STM - Free Report) , all flaunting a Zacks Rank #1.

Long-term earnings growth rate for Infineon, Marvell and STMicroelectronics is currently pegged at 8.6%, 9.4% and 5%, respectively.

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