COUPA SOFTWARE (COUP - Free Report) closed the most recent trading day at $150.60, moving +1.33% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.75%. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 1.32%.
Prior to today's trading, shares of the company had gained 12.91% over the past month. This has outpaced the Computer and Technology sector's gain of 5.59% and the S&P 500's gain of 3.42% in that time.
COUP will be looking to display strength as it nears 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, the Zacks Consensus Estimate for revenue is projecting net sales of $96.50 million, up 43.05% from the year-ago period.
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 recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 1.88% higher within the past month. COUP currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that COUP has a Forward P/E ratio of 921.34 right now. This represents a premium compared to its industry's average Forward P/E of 56.03.
Meanwhile, COUP's PEG ratio is currently 24.83. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.81 based on yesterday's closing prices.
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 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.
To follow COUP in the coming trading sessions, be sure to utilize Zacks.com.