COUPA SOFTWARE (COUP - Free Report) closed at $144.65 in the latest trading session, marking a +1.1% move from the prior day. This change outpaced the S&P 500's 0.05% gain on the day. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.11%.
Coming into today, shares of the company had gained 4.51% in the past month. In that same time, the Computer and Technology sector gained 4.89%, while the S&P 500 gained 4.32%.
Investors will be hoping for strength from COUP as it approaches its next earnings release, which is expected to be December 2, 2019. On that day, COUP is projected to report earnings of $0.07 per share, which would represent a year-over-year decline of 12.5%. 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.
Investors might also notice recent changes to analyst estimates for COUP. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.88% higher. COUP is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that COUP has a Forward P/E ratio of 884.2 right now. This represents a premium compared to its industry's average Forward P/E of 57.68.
It is also worth noting that COUP currently has a PEG ratio of 23.83. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software was holding an average PEG ratio of 2.69 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 102, putting 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.