We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
COIN Stock Up 29% in 3 Months But Valuation Expensive: How to Play
Read MoreHide Full Article
Key Takeaways
COIN gained 29.1% in 3 months, topping the industry, sector and S&P 500 composite.
Coinbase is building an "everything exchange," adding gold and silver perpetual futures contracts.
Coinbase won conditional OCC approval for a national trust bank and is expanding internationally.
Shares of Coinbase Global (COIN - Free Report) have gained 29.1% in the past three months, outperforming the industry, sector and the Zacks S&P 500 composite.
Coinbase, a leading player in the crypto space, is well-positioned to gain from expanding its range of listed digital assets and tokenized equities, along with its international growth and strategic acquisitions. The company has been actively pursuing initiatives that support CEO Brian Armstrong’s vision of evolving Coinbase into an “everything exchange,” delivering a comprehensive suite of digital financial services. As it continues to execute its long-term strategy, Coinbase appears set for a strong performance in 2026.
COIN vs. Industry, Sector, S&P 500 in 3 Months
Image Source: Zacks Investment Research
Its peers, Robinhood Markets (HOOD - Free Report) , a crypto-oriented company, has lost 6.2% in the past three months, while Interactive Brokers Group, Inc. (IBKR - Free Report) has gained 18.1% in the same time frame.
Mixed Analyst Sentiment for COIN
The Zacks Consensus Estimate for 2026 earnings has moved 35.4% south in the past 30 days, while that for 2027 has moved 11.7% north in the same time frame.
Image Source: Zacks Investment Research
The consensus estimates for 2026 and 2027 EPS of Robinhood Markets has moved south in the past 30 days. However, the same for Interactive Brokers Group witnessed no movement in the same time frame.
Growth Projection for COIN
Though the Zacks Consensus Estimate for both 2026 revenues and EPS indicates a year-over- year decline, the consensus estimate for 2027 revenues and EPS implies a year-over-year increase. Long-term earnings are expected to improve 15.9%, lower than the industry average of 16.9%
COIN is Expensive
COIN shares are trading at a premium to the industry. Its 12-month forward price-to-earnings of 66.08X is much higher than the industry average of 10.3X and the median of 52.2X over the past three years.
Image Source: Zacks Investment Research
Its Value Score of D suggests that the stock is not so cheap and indicates a stretched valuation at this moment.
COIN is more expensive than both Robinhood Markets and Interactive Brokers Group.
Investment Thesis
Coinbase is advancing its ambition to become an “everything exchange,” enabling seamless, around-the-clock trading across digital assets, commodities, equities and derivatives on a single platform. As part of this strategy, the company recently expanded its crypto derivatives offerings by introducing gold (GOLD-PERP) and silver (SILVER-PERP) perpetual futures contracts.
The company also reached an important regulatory milestone after receiving conditional approval from the Office of the Comptroller of the Currency (OCC) to establish a national trust bank. This development strengthens Coinbase’s position in the financial sector and highlights the growing integration of digital assets with traditional banking systems.
International expansion continues to support growth, with Coinbase operating in markets including Australia, Brazil, Kenya, the European Union, India, Japan, the Philippines, Indonesia, Singapore, the United Kingdom and Switzerland. This broader global presence helps diversify revenues and reduces reliance on the U.S. market.
Coinbase is also widening its product lineup through new cryptocurrencies and tokenized equities. The company recently launched regulated futures trading in Europe for Bitcoin, Solana and equity-index futures, while also introducing stock and ETF trading in the United States to compete more directly with diversified fintech brokerages.
In 2026, Coinbase plans to focus on real-world asset (RWA) perpetuals, specialized exchanges, advanced trading solutions, decentralized finance infrastructure, and AI- and robotics-driven innovations.
Despite maintaining strong liquidity and relatively low leverage, Coinbase remains vulnerable to crypto market volatility, rising operating expenses, impairment charges and restructuring costs tied to weaker digital asset prices.
What Should Investors Do?
Coinbase is well-positioned for growth through its continued efforts to expand the crypto ecosystem, gain additional spot trading market share across both retail and institutional segments, and strengthen its platform capabilities. Rising average USDC balances, growth in USDC market capitalization and relatively stable cryptocurrency prices could also contribute to more consistent revenue generation.
Nevertheless, the stock’s premium valuation, softer market volatility, weaker digital asset prices, cautious analyst sentiment, near-term pressure on revenue and earnings, and below-average return on equity suggest a more balanced outlook. Given these factors, a wait-and-see approach appears appropriate for this Zacks Rank #3 (Hold) stock at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Shutterstock
COIN Stock Up 29% in 3 Months But Valuation Expensive: How to Play
Key Takeaways
Shares of Coinbase Global (COIN - Free Report) have gained 29.1% in the past three months, outperforming the industry, sector and the Zacks S&P 500 composite.
Coinbase, a leading player in the crypto space, is well-positioned to gain from expanding its range of listed digital assets and tokenized equities, along with its international growth and strategic acquisitions. The company has been actively pursuing initiatives that support CEO Brian Armstrong’s vision of evolving Coinbase into an “everything exchange,” delivering a comprehensive suite of digital financial services. As it continues to execute its long-term strategy, Coinbase appears set for a strong performance in 2026.
COIN vs. Industry, Sector, S&P 500 in 3 Months
Image Source: Zacks Investment Research
Its peers, Robinhood Markets (HOOD - Free Report) , a crypto-oriented company, has lost 6.2% in the past three months, while Interactive Brokers Group, Inc. (IBKR - Free Report) has gained 18.1% in the same time frame.
Mixed Analyst Sentiment for COIN
The Zacks Consensus Estimate for 2026 earnings has moved 35.4% south in the past 30 days, while that for 2027 has moved 11.7% north in the same time frame.
Image Source: Zacks Investment Research
The consensus estimates for 2026 and 2027 EPS of Robinhood Markets has moved south in the past 30 days. However, the same for Interactive Brokers Group witnessed no movement in the same time frame.
Growth Projection for COIN
Though the Zacks Consensus Estimate for both 2026 revenues and EPS indicates a year-over- year decline, the consensus estimate for 2027 revenues and EPS implies a year-over-year increase. Long-term earnings are expected to improve 15.9%, lower than the industry average of 16.9%
COIN is Expensive
COIN shares are trading at a premium to the industry. Its 12-month forward price-to-earnings of 66.08X is much higher than the industry average of 10.3X and the median of 52.2X over the past three years.
Image Source: Zacks Investment Research
Its Value Score of D suggests that the stock is not so cheap and indicates a stretched valuation at this moment.
COIN is more expensive than both Robinhood Markets and Interactive Brokers Group.
Investment Thesis
Coinbase is advancing its ambition to become an “everything exchange,” enabling seamless, around-the-clock trading across digital assets, commodities, equities and derivatives on a single platform. As part of this strategy, the company recently expanded its crypto derivatives offerings by introducing gold (GOLD-PERP) and silver (SILVER-PERP) perpetual futures contracts.
The company also reached an important regulatory milestone after receiving conditional approval from the Office of the Comptroller of the Currency (OCC) to establish a national trust bank. This development strengthens Coinbase’s position in the financial sector and highlights the growing integration of digital assets with traditional banking systems.
International expansion continues to support growth, with Coinbase operating in markets including Australia, Brazil, Kenya, the European Union, India, Japan, the Philippines, Indonesia, Singapore, the United Kingdom and Switzerland. This broader global presence helps diversify revenues and reduces reliance on the U.S. market.
Coinbase is also widening its product lineup through new cryptocurrencies and tokenized equities. The company recently launched regulated futures trading in Europe for Bitcoin, Solana and equity-index futures, while also introducing stock and ETF trading in the United States to compete more directly with diversified fintech brokerages.
In 2026, Coinbase plans to focus on real-world asset (RWA) perpetuals, specialized exchanges, advanced trading solutions, decentralized finance infrastructure, and AI- and robotics-driven innovations.
Despite maintaining strong liquidity and relatively low leverage, Coinbase remains vulnerable to crypto market volatility, rising operating expenses, impairment charges and restructuring costs tied to weaker digital asset prices.
What Should Investors Do?
Coinbase is well-positioned for growth through its continued efforts to expand the crypto ecosystem, gain additional spot trading market share across both retail and institutional segments, and strengthen its platform capabilities. Rising average USDC balances, growth in USDC market capitalization and relatively stable cryptocurrency prices could also contribute to more consistent revenue generation.
Nevertheless, the stock’s premium valuation, softer market volatility, weaker digital asset prices, cautious analyst sentiment, near-term pressure on revenue and earnings, and below-average return on equity suggest a more balanced outlook. Given these factors, a wait-and-see approach appears appropriate for this Zacks Rank #3 (Hold) stock at the moment. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.