Coupang (CPNG -0.56%) is South Korea’s leading e-commerce provider. It has a pretty dominant position with 23.6 million active customers. This may not seem like a lot, but it’s about half of the country’s adult population. Coupang is graded D on this front, indicating that it is trading at a premium to its peers.
Revisions to Earnings Estimates
Stockchase, in its reporting on what has been discussed by individuals on business television programs (in particular Business News Network), neither recommends nor promotes any investment strategies. CPNG earnings call for the period ending September 30, 2024. Upgrade to MarketBeat All Access to add more stocks to your watchlist. Coupang (CPNG) raised $3.4 billion in an IPO on Thursday, March 11th 2021. The company issued 120,000,000 shares at $27.00-$30.00 per share.
Coupang, Inc., together with its subsidiaries, owns and operates retail business through its mobile applications and internet websites in South Korea and internationally. It operates through Product Commerce and Developing Offerings segments. The Product Commerce segment includes Korean retail and marketplace offerings; Rocket Fresh, a fresh grocery offering; and advertising products. The Developing Offerings segment offers Coupang Eats, a restaurant ordering and delivery service; Coupang Play, an online content streaming service; fintech activities; and Farfetch, a luxury fashion marketplace. It also performs operations and support services in the United States, South Korea, Taiwan, Singapore, China, Japan, and India. Coupang, Inc. was incorporated in How to Invest in Index Funds 2010 and is headquartered in Seattle, Washington.
Click here to see the values of some of the valuation metrics that have driven this grade. Despite the market expectation for improving earnings, Coupang’s inconsistent record in recent years in what remains a highly competitive industry warrants some caution. Beyond Korea, multiple retailers are targeting the same growth opportunities in Asia-Pacific, adding a layer of uncertainty. There’s a lot to like about Coupang capturing themes like e-commerce and fintech adoption in emerging markets. Nevertheless, it’s a smart idea to examine investments critically and consider where things could go wrong.
- According to 6 analysts, the average rating for CPNG stock is “Buy.” The 12-month stock price forecast is $29.83, which is an increase of 5.44% from the latest price.
- And if earnings estimates go up for a company, the fair value for its stock goes up.
- The Product Commerce segment includes Korean retail and marketplace offerings; Rocket Fresh, a fresh grocery offering; and advertising products.
- This is against a backdrop of Coupang’s stock trading at 48 times its consensus 2025 EPS as a forward price-to-earnings (P/E) ratio.
Investor Services
A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock. Copyright © 2025 FactSet Research Systems Inc.© 2025 TradingView, Inc. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. Coupang scored higher than 57% of companies evaluated by MarketBeat, and ranked 134th out of 207 stocks in the retail/wholesale sector.
CPNG Competitors
Its Coupang Wow subscription has attracted loyal customers with same-day delivery, exclusive deals bundled with a streaming movies platform, and gym access in select locations. Coupang is a better company now than it was when it went public four springtimes ago. It stumbled in its initial expansion into Japan, but it’s holding up better in Taiwan as a secondary market. It also scored some global street cred early last year when it acquired European luxury apparel e-tailer Farfetch at a distressed price.
The segment posted Q3 revenue growth of 146% from last year, even excluding the boost from Farfetch. For the next fiscal year, the consensus earnings estimate of $0.62 indicates a change of +119.1% from what Coupang is expected to report a year ago. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +23.48% per year. These returns cover a period from January 1, 1988 through May 5, 2025.
CORRECTING and REPLACING Coupang Announces Results for Fourth Quarter 2024
This is against a backdrop of Coupang’s stock trading at 48 times its consensus 2025 EPS as a forward price-to-earnings (P/E) ratio. This valuation level isn’t cheap next to regional e-commerce players such as Sea Limited, with a forward P/E ratio of 34, and Chinese players Alibaba and PDD Holdings trading at an earnings multiple closer to 10. Shares of Coupang (CPNG -0.56%) have quietly climbed by 77% in the past year amid strong growth from the South Korean e-commerce leader. The rally is a welcomed turn of events for longtime investors following a challenging post-pandemic period with disappointing company results. Nevertheless, the stock remains 51% below its 2021 IPO price of $63.50, reflecting a deep reset of expectations in coinberry review the time since. Over the last four quarters, Coupang surpassed consensus EPS estimates three times.
Change versus previous month
Despite the disappointing overall return, momentum is on its side now. Coupang is beating the market with a 24% year-to-date rise, and there’s a clear path for the upticks to keep coming. I predict that Coupang can beat the market in the coming year and potentially longer than that. Investors who believe Coupang will struggle to achieve consistent profitability may want to consider selling or avoiding this stock in 2025. Privacy Policy | No cost, no obligation to buy anything ever.Past performance is no guarantee of future results.
- It has a pretty dominant position with 23.6 million active customers.
- Their paid membership prices are increasing 58%, so let’s see if they have pricing power.
- Despite the disappointing overall return, momentum is on its side now.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Coupang. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors’ interest in buying the stock, leading to its price moving higher.
Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. The consensus earnings estimate of $0.28 for the current fiscal year indicates a year-over-year change of +27.3%. No investment decision can be efficient without considering a stock’s valuation. Whether a stock’s current price rightly reflects the intrinsic value of the underlying business and the company’s growth prospects is an essential determinant of its future price performance.
This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Coupang (CPNG-N) presents a mix of opportunities and concerns for investors based on recent expert reviews. On one hand, the company’s impressive 20% revenue growth signals a robust performance within the competitive South Korean e-commerce landscape. The experts note the increasing consumer spending power, which potentially supports further growth as paid membership prices rise significantly. Despite this positive outlook, some experts express caution due to the ‘awful momentum’ surrounding the stock, highlighting the importance of tracking this momentum as it approaches all-time highs. Observing Coupang’s pricing power will be crucial in determining its long-term sustainability and ability to navigate market challenges effectively.
Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations.
Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock. Wall Street analysts tracked by Yahoo! Finance expect 24.7% revenue growth in 2024 (pending final Q4 results), followed by 15.5% in 2025. The adjusted earnings per share (EPS) outlook is particularly exciting, projected to reach $0.49 in 2025 versus $0.01 in 2024. Coupang reported revenues of $7.91 billion in the last reported quarter, representing a year-over-year change of +11.2%.
In 2024, Coupang acquired the specialty online luxury fashion marketplace Farfetch, marking an effort to diversify beyond its mass-market retail focus into a new category with a global reach. While Farfetch isn’t yet profitable, it’s already contributing to the top line. Awful momentum, but he likes Coupang for its 20% revenue growth and will approach an all-time high. Coupang is recognized as one of Asia’s largest retailers, offering everything from groceries to electronics and fashion through its online marketplace.
Investors confident the company is in the early stages of consolidating its market share and expanding institutional trading & institutional portfolio managers internationally have plenty of reasons to buy the stock today. Coupang is expected to post earnings of $0.07 per share for the current quarter, representing no change from the year-ago quarter. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.