Stocks and the crypto market are rejuvenated by hopes of another rate cut at the Fed’s meeting. Bitcoin prices are rebounding after hitting multi-month lows, benefitting companies like Coinbase and Strategy. Coinbase is 38% from its 52-week high, while Strategy is trading nearly 60% lower. Risk factors include macroeconomic pressures and weak sentiment.

Bitcoin surged to over $120,000 before a recent correction, driven by a bullish run post-halving cycle. Coinbase faces profitability declines due to expansion costs, with FY26 EPS projected at $5.87. Strategy’s EPS estimates for FY25 and FY26 have increased significantly due to accounting standard updates. Concerns exist over Strategy’s balance sheet and its massive Bitcoin holdings.

Coinbase’s annual sales are expected to expand by high double digits, with FY26 EPS projected at $5.83. Strategy could deliver eye-catching FY25 EPS of $78.04 with expectations of billions in net income. Despite recent cryptocurrency volatility, both companies have Hold ratings as more buying opportunities may arise. Coinbase’s valuation is more reasonable now, but an extended rebound may not be imminent.

Zacks Investment Research’s Director of Research believes there is a top stock with money-doubling potential. Recommendations with high potential include companies like Hims & Hers Health. For more stock recommendations from Zacks, you can download the 7 Best Stocks for the Next 30 Days report.

Read more at Nasdaq: Is an Extended Rebound Ahead for Coinbase or Strategy Stock?