Of 26 analysts covering Coinbase stock, 13 have a Buy or Strong Buy rating and another nine rate the shares at Hold. At a share price of around $63.30, the upside potential based on a median price target of $87.00 is 37.4%. At the high target of $220.00, the upside potential is about 248%.
For the third quarter of 2022, the consensus revenue estimate is $641.88 million, down by 20.6% sequentially and by 51.0% year over year. Analysts are forecasting an adjusted loss per share of $1.47, compared to a loss of $0.87 per share in the second quarter and adjusted EPS of $1.85 in the year-ago quarter. For the full year, analysts now expect a loss per share of $6.64, compared to 2021 EPS of $17.10, on sales of $3.32 billion, down nearly 58%.
Coinbase is not expected to post a profit in 2022, 2023 or 2024. The enterprise value to sales multiple for 2022 is 3.7. For 2023, the multiple is 3.0, and for 2024, it is 2.3. The stock trades in a 52-week range of $40.83 to $368.90. Coinbase does not pay a dividend, and the total shareholder return for the past year was negative 80.9%.
PayPal
PayPal Holdings Inc. (NASDAQ: PYPL) has seen its share price drop by 64% over the past 12 months. The payments company surprised to the upside when it reported prior-quarter results and announced a new $15 billion share buyback program, but the bounce was small and short-lived. A recent agreement with Amazon will allow customers to use PayPal’s Venmo to make purchases. That is good news, coming as the holiday shopping season begins. If the company can repeat its surprise performance in the third quarter, the stock could get a more permanent boost.
Of 47 analysts covering the stock, 34 rate PayPal shares as a Buy or Strong Buy and the other 13 have a Hold rating. At a share price of around $83.10, the upside potential based on a median price target of $120.00 is 44.4%. At the high target of $160.00, the upside potential is 92.5%.
Third-quarter revenue is expected to come in at $6.82 billion, up 0.2% sequentially and 10.4% higher year over year. Adjusted EPS are forecast at $0.96, up 3.3% sequentially but 13.5% lower year over year. For the full 2022 fiscal year, estimates call for EPS of $3.63, down 14.5%, on sales of $27.87 billion, up 9.9%.
PayPal stock currently trades at about 21.1 times expected 2022 EPS, 17.3 times estimated 2023 earnings of $4.82 and 14.6 times estimated 2024 earnings of $5.69 per share. The stock’s 52-week range is $67.58 to $232.76. PayPal does not pay a dividend, and total shareholder return for the past 12 months was negative 64.1%.
Starbucks
Starbucks Corp. (NASDAQ: SBUX) posted its 52-week high in early January. Since then, the shares have dropped by more than 20%. The stock posted a new 52-week low on Tuesday.
Unionization efforts have slowed since 71 U.S. stores petitioned for union representation in March, but a recent ruling by the National Labor Relations Board is forcing the company to reopen a store in Ithaca, New York, that the agency found was closed in retaliation for a vote to unionize the store. Another complaint, in North Carolina, accuses the company of adding undisclosed amounts of potassium to one of its dark roast brews.
Analyst sentiment is cool on the stock, with 20 of 35 having a Hold rating and 15 a Buy or Strong Buy rating. At a share price of around $87.10, the upside potential based on a median price target of $96.50 is 10.8%. At the high price target of $136.00, the upside potential is 56.1%.
For the company’s fiscal fourth quarter that ended in September, analysts are expecting revenue of $8.32 billion, up 2.0% sequentially and by 2.1% year over year. Adjusted EPS are pegged at $0.72, down 14.3% sequentially and by 28.0% year over year. For the 2022 fiscal year, current estimates call for EPS of $2.87, down 11.3%, on sales of $32.15 billion, up 10.6%.
Starbucks stock trades at about 30.3 times expected 2022 EPS, 26.4 times estimated 2023 earnings of $3.30 and 22.4 times estimated 2024 earnings of $3.88 per share. The stock’s 52-week range is $68.39 to $117.80. Starbucks pays an annual dividend of $2.12 (yield of 2.53%). Total shareholder return for the past year was negative 18.9%.
Originally published at 24/7 Wall St.
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