To The Moon

$Coinbase Global, Inc.(COIN)$ Coinbase Global, Inc.COINhas been gaining momentum on higher institutional interest, higher Monthly Transacting Users (MTU), and improved average crypto asset prices and total crypto spot market volumes.

Zacks Rank & Price Performance

Coinbase Global currently carries a Zacks Rank #3 (Hold). Year to date, the stock has lost 68% compared with theindustry’s decline of 28.1%.

Image Source: Zacks Investment Research

Business Tailwinds

Coinbase Global is likely to gain from the increased adoption of a greater number of crypto assets, higher volatility, and a rise in interest across the entire crypto economy.
For 2022, Coinbase Global expects subscription and services revenues to be more than $600 million.
Ethereum’s trading volume growth is likely to have gained from higher institutional interest, the launch of Ethereum 2.0 staking products, and growth in DeFi and NFT.
Higher MTU and elevated trading volumes per MTU are likely to have aided Retail transaction revenues. The annual average retail MTU is expected to be between 7 million and 9 million in 2022.
Improved transactional revenues coupled with subscription and service revenues are likely to drive the top line of Coinbase Global.
Increases in both the average crypto asset prices and total crypto spot market volumes are likely to have driven the overall trading volume of COIN.
Coinbase Global boasts a solid financial position and expects sufficient liquidity to fund its business through a prolonged stressed market environment.

Stocks to Consider

Some better-ranked stocks from the finance sector areRadian Group Inc.RDN,James River Group Holdings, Ltd.JRVRandOld Republic International CorporationORI. Radian Group currently sports a Zacks Rank #1 (Strong Buy), while James River Group and Old Republic International presently carry a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Radian Group’s earnings surpassed estimates in three of the last four quarters and missed in one, the average earnings surprise being 29.51%.
The Zacks Consensus Estimate for RDN’s 2022 and 2023 earnings has moved 16.1% and 9.7% north, respectively, in the past 60 days.  Year to date, the insurer has gained 0.1%.
The Zacks Consensus Estimate for James River Group’s 2022 and 2023 earnings implies 137% and 15.3% year-over-year growth, respectively.
The Zacks Consensus Estimate for JRVR’s 2022 and 2023 earnings has moved 2.6% and 4.6% north, respectively, in the past 60 days.  Year to date, the insurer has declined 16.1%.
Old Republic International’s earnings surpassed estimates in three of the last four quarters and missed in one, the average earnings surprise being 15.1%.
The Zacks Consensus Estimate for ORI’s 2022 earnings has moved 4.2% north in the past 60 days. Year to date, the insurer has declined 8.7%.