Coinbase stock gets huge rating upgrade
A crypto company among the top-rated stocks for price performance? Given the erratic market for Bitcoin, and the recent failures of FTX and BlockFi, that may seem unlikely. But Coinbase Global (COIN), a cryptocurrency investment platform, just got a big boost for its relative strength (RS) rating, which was upgraded from 68 to 89 on Wednesday. Coinbase stock rose.
Coinbase shares among the best for price performance
The 89 RS rating means that Coinbase stock is in the top 11% of all stocks for price appreciation over the past year. Market research shows that the best watch and buy stocks tend to have an RS rating north of 80 when they launch their biggest runs.
Despite its strong RS rating, Coinbase stock has some work to do to break into the top tier of stocks. First the good news. Coinbase has a B accumulation/distribution rating, on an A+ to E scale. This indicates strong purchases of the shares by funds. And it’s in the Computer Software-Financial group, which has an A-RS Rating.
However, it also has a weak 4 earnings per share rating, out of 99, as it struggles to become profitable. A lack of earnings is not unusual for a relatively young company like Coinbase, which launched its IPO in April 2021. The 40 Composite Rating, out of 99, for Coinbase shares is stronger, but still not what you’re looking for in market leaders.
Coinbase Global reported a loss of $2.46 per share last quarter on a 75% decline in revenue to $629.1 million.
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Coinbase rises despite market decline on Wednesday
Coinbase shares rose 2.9% on Wednesday to close at 64.47. That’s more than double the Jan. 6 low of 31.55. Bitcoin has also risen rapidly recently, which could lift crypto brokers like Coinbase. Coinbase Global is currently nowhere near a potential buy zone. See if the stock continues to form a promising consolidation that could launch another move.
Coinbase stock ranks #25 among its peers in the Computer Software-Financial industry group. Vertex (VERX) and Fair Isaac (FICO) is among the group’s highest-rated shares.
IBD’s proprietary RS Rating tracks technical performance using a 1 (worst) to 99 (best) score that indicates how a stock’s price action over the following 52 weeks matches up with all other stocks.
Follow James DeTar on Twitter @JimDeTar
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