The Zacks Analyst Blog Coinbase, Robinhood Markets and Interactive Brokers

For Immediate ReleasesChicago, IL – November 26, 2024 – Zacks.com announces the list of stocks and featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include including Coinbase Global Inc COIN, Robinhood Markets HOOD and Interactive Brokers Group, Inc. IBKR.Here are highlights from Tuesday’s Analyst Blog:Coinbase (COIN) Surges +71% to Date: Buy, Hold or Sell the Stock?Shares of Coinbase Global Inc have rallied 70.9% in the quarter to date, outperforming its industry, sector and Zacks S&P 500 Composite’s return in the same time frame.COIN, America's largest registered crypto exchange, has a market capitalization of $76.3 billion. The average volume of shares traded in the last three months was 11.8 million.COIN shares are trading well above the 50-day moving average, indicating a bullish trend.Mixed Analyst Sentiment for COINTwo analysts covering the stock have revised their estimates south for 2024, while five analysts raised the same for 2025 over the past 30 days. The consensus estimate for 2024 has moved 2.4% south but increased 24.8% in the past 30 days.Though the Zacks Consensus Estimate for 2024 earnings implies a 1301% year-over-year increase, the same for 2025 suggests a 48% decrease.COIN provides financial infrastructure and technology for the crypto economy in the United States and internationally. The company is set to benefit from higher crypto asset volatility and crypto asset prices. Increasing regulatory clarity acts as a catalyst for Coinbase and the broader crypto economy.Strengthening banking connections, new licenses and the expansion of tailor-made product ranges to meet unique customer preferences are helping COIN reach new heights.Coinbase stays focused on growth by increasing its market share in the U.S. spot and derivatives markets, expanding its product portfolio and the international market. This apart, growth in stablecoins should also fuel the company’s top line.COIN has been prioritizing crypto utility. It envisions bringing 1 billion or more people on crypto rail and is thus heavily investing in infrastructure and foundational platforms like Layer 2s, Base and Stablecoins. COIN partnered with Stripe to enhance the global adoption of crypto.Focus on shifting to a subscription-based model enabled COIN to maintain positive EBITDA for the last six consecutive quarters. Its liquidity supports strategic investment in growth initiatives and expands its service offerings.Unfavorable Return on EquityCOIN’s return on equity in the trailing 12 months was 14.8%, lower than the industry average of 30.8%, reflecting inefficiency in utilizing shareholders’ funds.The return on invested capital in the trailing 12 months was 7.6%, compared unfavorably with the industry average of 21.2%. This reflects the insurer’s inefficiency in utilizing funds to generate income.Average Target Price for COIN Suggests a DownsideBased on short-term price targets offered by 21 analysts, the Zacks average price target is at $257.38 per share. The average suggests a potential 15.5% downside from Friday’s closing price.Expensive ValuationCoinbase shares are trading at a premium to the Zacks Financial Transaction Service Market. Its 12-month forward price-to-earnings of 102.68X is much higher than the industry average of 25.47X, the broader sector’s 25.64X and the Zacks S&P 500 Composite’s 22.38X.Its Value Score of F suggests that the stock is not so cheap and indicates a stretched valuation at this moment.Shares of Robinhood Markets and Interactive Brokers Group, Inc., two other crypto-oriented stocks, are also trading at a multiple higher than the industry average.To ConcludeThe inherent volatility in crypto prices exposes COIN to operational risks. The failure of its foundational platforms also poses risks. Coinbase, the custodian of client assets, is also exposed to cyber threats.Nonetheless, the company’s efforts to accelerate growth in the crypto market, increase market share in spot trading on consumer and institutional trading platforms and improve trading experience, along with continued innovation, should help it accelerate growth.Yet, a premium valuation, negative analyst sentiment, and weak return on capital keep us cautious.Investors who own this Zacks Rank #3 (Hold) stock should retain it, while others may wait for a better entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                     https://www.zacks.com                                                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.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report Coinbase Global, Inc. (COIN): Free Stock Analysis Report Robinhood Markets, Inc. (HOOD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks