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Why Coupang, Inc. (CPNG) Outpaced the Stock Market Today

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Coupang, Inc. (CPNG - Free Report) closed the latest trading day at $20.18, indicating a +1.97% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 1.11% for the day. Meanwhile, the Dow experienced a rise of 1.64%, and the technology-dominated Nasdaq saw an increase of 1.03%.

Prior to today's trading, shares of the company had lost 6.16% over the past month. This has lagged the Retail-Wholesale sector's loss of 2.12% and the S&P 500's loss of 1.16% in that time.

The upcoming earnings release of Coupang, Inc. will be of great interest to investors. The company's earnings report is expected on August 6, 2024. The company is expected to report EPS of $0.04, down 50% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $7.29 billion, indicating a 24.91% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.01 per share and revenue of $30.3 billion, which would represent changes of -96.15% and +24.25%, respectively, from the prior year.

Any recent changes to analyst estimates for Coupang, Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 92.31% decrease. Coupang, Inc. is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Coupang, Inc. is presently being traded at a Forward P/E ratio of 1979. Its industry sports an average Forward P/E of 19.88, so one might conclude that Coupang, Inc. is trading at a premium comparatively.

It is also worth noting that CPNG currently has a PEG ratio of 1959.41. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 0.99.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 64, finds itself in the top 26% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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