Bitcoin(BTC-USD) gets a technical bump off bottom, Coinbase a stock to play the run(COIN:NSD)

STA Research
by: STA Research

Bitcoin (BTC-USD) gets a technical bump off bottom                                                                                                                                                                                                                                                                                                                                                        
Bitcoin recently gained the most in valuation this week from a 10 month low earlier this year. Since Tuesday, the crypto currency made a technical bullish move and bounced of it’s lows, staging a solid bullish leg up as it tries to break from it’s downtrend which commenced in the beginning of November. 
Congress is currently convening over high-level talks regarding future cryptocurrency regulations, which as a result could impact positively or negatively Bitcoin’s place in the financial infrastructure of America.
The Federal Reserve Bank  is currently planning on executing 3 rate hikes and the reduction of it’s bond buying to help fight inflation.  Investors are concerned that any aggressive Fed action on interest rates could start a wave of selling in the crypto market, causing a nasty crash that could have consequences to the broader financial market.
Crypto experts are looking for Bitcoin to cross and hold the 50k threshold, a psychological level that could help extend the current bull move.

Coinbase Global Inc. is a stock for exposure to Bitcoin and other crypto currencies without having to buy them directly.

Based on the Coinbase Global Inc stock forecasts from 12 analysts, the average analyst target price for Coinbase Global Inc is USD 349.00 over the next 12 months. Coinbase Global Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Coinbase Global Inc is Bullish , which is based on 8 positive signals and 2 negative signals. At the last closing, Coinbase Global Inc’s stock price was USD 255.86. Coinbase Global Inc’s stock price has changed by -30.56 % over the past week, -87.12 % over the past month and +0.00 % over the last year.

What to like

:

High market capitalization This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable. Underpriced compared to earnings The stock is trading low compared to its peers on a price to earning basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason. Superior return on equity The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile. Superior capital utilization The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile. Superior return on assets The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile. Positive cash flow The company had positive total cash flow in the most recent four quarters. Positive free cash flow The company had positive total free cash flow in the most recent four quarters. Superior Earnings Growth This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

What to not like:

Overpriced compared to book value The stock is trading high compared to its peers median on a price to book value basis. Overpriced on free cash flow basis The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

 

Disclaimer

Stock Target Advisor is not a broker/dealer, investment advisor, or platform for making stock buying or selling decisions. Our goal is to democratize and simplify financial information through automated analysis, aggregation of stock information, and education to help investors with their research. No content on our site, blogs or newsletters constitutes – or should be understood as constituting – a recommendation to enter into any securities transactions or to engage in any of the investment strategies presented in our site content. We also cannot guarantee the accuracy of any information presented on our site and in our analysis.

Leave a Reply

Your email address will not be published.