From Nasdaq: 2024-07-04 13:38:00

Coinbase has secured a deal with the U.S. Marshals Service to manage $32.5 million in digital assets, making the U.S. government a major holder of crypto. Coinbase, America’s largest crypto exchange, will provide custody and trading services for the assets, benefiting from increased market share and growth.

In the first quarter of 2024, the crypto market saw a rise in volatility below its all-time high, reaching a market capitalization of $2.8 trillion. Despite recent downturns, interest rate cuts by the Fed could boost the market. Coinbase expects revenues between $525 million and $600 million, driven by stablecoins and market expansion.

Shares of Coinbase have outperformed the industry, sector, and S&P 500 with a 28.3% increase year-to-date. Robinhood Markets and Interactive Brokers Group have also seen significant gains. COIN’s 2024 and 2025 earnings estimates have risen, reflecting its growth potential and strong return on invested capital.

Coinbase’s return on invested capital stands at 14.5%, above the industry average of 5.9%. With a higher P/E multiple of 53.2 compared to the industry average of 24.7, COIN is considered expensive. However, its growth plan includes expanding in international markets and enhancing products to meet customer needs, justifying its premium valuation.

COIN’s efforts to accelerate growth in the crypto market, expand internationally, and prioritize crypto utility make it a top pick for investors. With ongoing innovations, cost control measures, and a strong market position, Coinbase is ranked as a Zacks #1 (Strong Buy) stock. Experts predict potential earnings surprises and price surges in the near future.

Read more at Nasdaq MarketSite: Is Coinbase (COIN) a Buy on U.S. Government Crypto Contract Win?