From Nasdaq

February 17, 2025 12:00:12 PM:

Investors may want to consider investing in Coinbase Global, Inc. (COIN) as it has been upgraded to a Zacks Rank #1 (Strong Buy) due to an upward trend in earnings estimates. The Zacks rating system focuses on changing earnings pictures and tracks EPS estimates from sell-side analysts.

Individual investors often struggle with making decisions based on Wall Street analyst upgrades, but the Zacks rating system is based on objective factors like earnings estimates. The recent upgrade for Coinbase Global indicates positive earnings outlook and potential stock price impact due to changing earnings picture.

Earnings estimate revisions have a significant impact on stock prices, with institutional investors using these estimates to calculate fair value. Rising earnings estimates and a Zacks rating upgrade for Coinbase Global signal improvement in the company’s business, likely leading to stock price appreciation.

Empirical research shows a strong correlation between earnings estimate revisions and stock movements, making it crucial to track such revisions for investment decisions. The Zacks Rank system classifies stocks based on earnings estimates, with Zacks Rank #1 stocks historically generating an average annual return of +25%.

Coinbase Global is expected to earn $4.56 per share for the fiscal year ending December 2025, with analysts raising their estimates for the company by 67.7% over the past three months. The Zacks rating system maintains an equal proportion of ‘buy’ and ‘sell’ ratings for all stocks, with only the top 5% receiving a ‘Strong Buy’ rating.

The upgrade of Coinbase Global to a Zacks Rank #1 places it in the top 5% of Zacks-covered stocks for estimate revisions, indicating potential for the stock to move higher in the near term. Investors can benefit from tracking earnings estimate revisions and utilizing the Zacks Rank system for investment decisions.

The Zacks Top 10 Stocks for 2025, handpicked by Zacks Director of Research Sheraz Mian, offer significant potential for investors. These top performers have historically outperformed the S&P 500, showcasing the success of the Zacks Rank system in identifying strong investment opportunities for the future.

Read more at Nasdaq: Coinbase Global (COIN) Upgraded to Strong Buy: Here’s What You Should Know