Coupang, Inc. CPNG shares rallied 14.1% in the last trading session to close at $17.25. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 5.3% loss over the past four weeks.
Coupang’s recovery momentum, accelerating WOW member reactivations, strong double-digit customer spending trends, improving revenue trajectory and strong long-term operating cash flow generation suggest the stock’s rally could continue despite temporary margin pressures.
This company is expected to post quarterly loss of $0.14 per share in its upcoming report, which represents a year-over-year change of -800%. Revenues are expected to be $8.93 billion, up 4.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Coupang, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on CPNG going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Coupang belongs to the Zacks Internet - Commerce industry. Another stock from the same industry, Amazon AMZN, closed the last trading session 1.5% higher at $241.51. Over the past month, AMZN has returned -11.9%.
Amazon's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.82. Compared to the company's year-ago EPS, this represents a change of +8.3%. Amazon currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).