Back to top

Image: Bigstock

Coupang, Inc. (CPNG) Stock Sinks As Market Gains: Here's Why

Read MoreHide Full Article

Coupang, Inc. (CPNG - Free Report) ended the recent trading session at $25.70, demonstrating a -0.39% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.45%.

Shares of the company have appreciated by 15.13% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 7.36% and the S&P 500's gain of 5.41%.

The investment community will be closely monitoring the performance of Coupang, Inc. in its forthcoming earnings report. In that report, analysts expect Coupang, Inc. to post earnings of $0.02 per share. This would mark a year-over-year decline of 60%. Simultaneously, our latest consensus estimate expects the revenue to be $7.79 billion, showing a 26.04% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of -$0.02 per share and a revenue of $30.57 billion, demonstrating changes of -107.69% and +25.36%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Coupang, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Coupang, Inc. presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Coupang, Inc. is presently being traded at a Forward P/E ratio of 191.11. For comparison, its industry has an average Forward P/E of 23.92, which means Coupang, Inc. is trading at a premium to the group.

We can additionally observe that CPNG currently boasts a PEG ratio of 189.22. 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 average PEG ratio for the Internet - Commerce industry stood at 1 at the close of the market yesterday.

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 56, placing it within the top 23% of over 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.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Coupang, Inc. (CPNG) - free report >>

Published in