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COUPA SOFTWARE (COUP) Gains But Lags Market: What You Should Know

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In the latest trading session, COUPA SOFTWARE closed at $133.04, marking a +0.13% move from the previous day. The stock lagged the S&P 500's daily gain of 0.16%. Elsewhere, the Dow 0%, while the tech-heavy Nasdaq added 0.26%.

Heading into today, shares of the company had lost 16.04% over the past month, lagging the Computer and Technology sector's gain of 4.79% and the S&P 500's gain of 4.12% in that time.

Investors will be hoping for strength from COUP as it approaches its next earnings release, which is expected to be December 2, 2019. The company is expected to report EPS of $0.07, down 12.5% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $96.50 million, up 43.05% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.16 per share and revenue of $372.82 million, which would represent changes of -20% and +43.19%, respectively, from the prior year.

Any recent changes to analyst estimates for COUP should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.88% higher within the past month. COUP is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note COUP's current valuation metrics, including its Forward P/E ratio of 821.11. Its industry sports an average Forward P/E of 57.01, so we one might conclude that COUP is trading at a premium comparatively.

Also, we should mention that COUP has a PEG ratio of 22.13. 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 2.77 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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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