For Immediate Release
Chicago, IL – September 7, 2017 – Today, Zacks Investment Ideas feature highlights Features: Coupa Software (Nasdaq: – Free Report).
This Stock Could Move a Lot Higher
Coupa Software(Nasdaq: – Free Report) is a Zacks Rank #3 (Hold) but there is a good chance that the Zacks Rank for this stock jumps to a Zacks Rank #2 (Buy) or even a Zacks Rank #1 (Strong Buy) in the next few days. The company just posted a very solid quarter and analysts will be revising estimates higher and that tends to improve the Zacks Rank for any stock.
COUP isn't that big of a stock compared to others in the enterprise software space. At $1.6B the company is only a fraction of WDAY, CRM, SAP and ORCL. The company's software helps businesses manage their purchasing. As their tag line says, what CRM is to sales, COUP is to expenses.
The company reported a loss of $0.10 per share, but that was $0.09 better than expected. Revenue rose 43% from the year ago level to $44.6M when $41.6 was expected. The key idea here is that the fiscal first quarter that was reported back in June of this year showed growth of 40.8% on the topline, so the 43% rate is an acceleration of growth. Growth investors love to see this and they are generally willing to pay a little more for growth than value investors are for any sort of value play.
Guidance
The company guided next quarter inline, as they gave a range of a loss of $0.12 - $0.10 when a loss of $0.12 was expected. However, the company guided revenue for next quarter above consensus with an expected range of $44.8M-$45.3M when the consensus was calling for $44.08M.
For FY18, the company sees a loss between $0.48 to $0.50 when the consensus was looking for a loss of $0.51. The company expects revenues of between $177M - $179M when the consensus was calling for $174M.
This is what we call a beat and raise report and aggressive growth investors love to see this.
Analysts
I see three recent research reports on the stock with two of them being initiations. First Analysis out of Chicago started the stock with an Overweight rating and price target of $37 in early August. BTIG Research started the stock at a Buy in early June and put a $40 price target on the stock. On June 1, RBC Capital Markets reiterated their Outperform rating on June 1 and at that time they raised their price target to $40 from $35.
Following this most recent beat and raise the stock is still a ways away from even the lowest price targets. The probability of a higher price target isn't all that good (at least at the time this piece was written).
My Take
This was a solid quarter and down the road, COUP will be bought by one of the bigger players. Long term investors will be rewarded if they hold this stock and ride out any rough patches. For the more immediate traders, this stock is primed for a move higher as options were pricing in a move of 11.6% and the stock was up around 8% in after hours. The thing is, the shorts were probably looking to hammer this stock as good reports from CRM and WDAY failed to move those stocks. Given those ideas, don't be surprised if COUP runs up more than 15% today.
Following this report, the stock deserves to be on your radar screen.
Free Tech Stock Newsletter
Let's face it, there is just too much data to keep track of. There are too many earnings reports and we all only have so much bandwidth to take it all in. Luckily, we have developed a tech stock newsletter that not only reviews the biggest ideas of the last week but also looks forward to the upcoming week as well. The best part about it is that it is totally free! I said FREE! To sign up, just click here: https://www.zacks.com/registration/newsletter/?type=TSN
Be sure to follow me on Twitter: @BBolan1
Want more articles from this author? Go to Zacks.com on this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
Brian Bolan is a Stock Strategist for Zacks.com.
He runs Stocks Under $10 Investor service where he looks for low priced stocks that are seeing positive earnings estimate revisions. This popular service has seen some strong early returns and offers a free trial via the Zacks Ultimate service.
Brian also runs the brand new Zacks Game Changers where he looks for stocks that are disrupting their industries and reaping big gains.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>
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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Coupa Software
For Immediate Release
Chicago, IL – September 7, 2017 – Today, Zacks Investment Ideas feature highlights Features: Coupa Software (Nasdaq: – Free Report).
This Stock Could Move a Lot Higher
Coupa Software(Nasdaq: – Free Report) is a Zacks Rank #3 (Hold) but there is a good chance that the Zacks Rank for this stock jumps to a Zacks Rank #2 (Buy) or even a Zacks Rank #1 (Strong Buy) in the next few days. The company just posted a very solid quarter and analysts will be revising estimates higher and that tends to improve the Zacks Rank for any stock.
COUP isn't that big of a stock compared to others in the enterprise software space. At $1.6B the company is only a fraction of WDAY, CRM, SAP and ORCL. The company's software helps businesses manage their purchasing. As their tag line says, what CRM is to sales, COUP is to expenses.
The company reported a loss of $0.10 per share, but that was $0.09 better than expected. Revenue rose 43% from the year ago level to $44.6M when $41.6 was expected. The key idea here is that the fiscal first quarter that was reported back in June of this year showed growth of 40.8% on the topline, so the 43% rate is an acceleration of growth. Growth investors love to see this and they are generally willing to pay a little more for growth than value investors are for any sort of value play.
Guidance
The company guided next quarter inline, as they gave a range of a loss of $0.12 - $0.10 when a loss of $0.12 was expected. However, the company guided revenue for next quarter above consensus with an expected range of $44.8M-$45.3M when the consensus was calling for $44.08M.
For FY18, the company sees a loss between $0.48 to $0.50 when the consensus was looking for a loss of $0.51. The company expects revenues of between $177M - $179M when the consensus was calling for $174M.
This is what we call a beat and raise report and aggressive growth investors love to see this.
Analysts
I see three recent research reports on the stock with two of them being initiations. First Analysis out of Chicago started the stock with an Overweight rating and price target of $37 in early August. BTIG Research started the stock at a Buy in early June and put a $40 price target on the stock. On June 1, RBC Capital Markets reiterated their Outperform rating on June 1 and at that time they raised their price target to $40 from $35.
Following this most recent beat and raise the stock is still a ways away from even the lowest price targets. The probability of a higher price target isn't all that good (at least at the time this piece was written).
My Take
This was a solid quarter and down the road, COUP will be bought by one of the bigger players. Long term investors will be rewarded if they hold this stock and ride out any rough patches. For the more immediate traders, this stock is primed for a move higher as options were pricing in a move of 11.6% and the stock was up around 8% in after hours. The thing is, the shorts were probably looking to hammer this stock as good reports from CRM and WDAY failed to move those stocks. Given those ideas, don't be surprised if COUP runs up more than 15% today.
Following this report, the stock deserves to be on your radar screen.
Free Tech Stock Newsletter
Let's face it, there is just too much data to keep track of. There are too many earnings reports and we all only have so much bandwidth to take it all in. Luckily, we have developed a tech stock newsletter that not only reviews the biggest ideas of the last week but also looks forward to the upcoming week as well. The best part about it is that it is totally free! I said FREE! To sign up, just click here: https://www.zacks.com/registration/newsletter/?type=TSN
Be sure to follow me on Twitter: @BBolan1
Want more articles from this author? Go to Zacks.com on this article and click the FOLLOW AUTHOR button to get an email each time a new article is published.
Brian Bolan is a Stock Strategist for Zacks.com.
He runs Stocks Under $10 Investor service where he looks for low priced stocks that are seeing positive earnings estimate revisions. This popular service has seen some strong early returns and offers a free trial via the Zacks Ultimate service.
Brian also runs the brand new Zacks Game Changers where he looks for stocks that are disrupting their industries and reaping big gains.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>
Get the full Report on COUP – FREE
Follow us on Twitter: https://twitter.com/ZacksResearch
Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com/performance
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.