Will Robinhood (HOOD) or Coinbase (COIN) Stock Bounce Back?

Core Viewpoint - Robinhood Markets (HOOD) and Coinbase Global (COIN) have experienced significant stock price fluctuations recently, but both companies have shown strong performance in the past two years, outperforming broader market indexes due to positive earnings estimate revisions [1][2][3]. Company Performance - Robinhood's stock reached a 52-week high of $66 earlier this month but has since declined over 20% from that peak [2]. - Coinbase shares climbed to over $300 but have fallen 30% from a near two-month high [2]. - Over the last two years, Robinhood has gained over 400% and Coinbase over 200%, significantly outperforming broader indexes [2]. Earnings Estimates - Robinhood's FY25 EPS estimates increased by 28% in the last 30 days, from $1.18 to $1.51, while FY26 estimates rose 15% from $1.47 to $1.70 [4]. - Coinbase's FY25 EPS estimates surged 110% in the last 30 days, from $3.48 to $7.32, and FY26 estimates skyrocketed nearly 200% from $2.97 to $8.72 [6]. Valuation Metrics - Coinbase is currently trading at a forward earnings multiple of 29.4X, down from a one-year high of 255.3X and a median of 54.2X [8]. - Robinhood trades at 32.4X forward earnings, below its one-year high of 89.3X and slightly below the median of 41.8X [9]. Investment Outlook - Both Robinhood and Coinbase have received a Zacks Rank 1 (Strong Buy) rating due to positive earnings estimate revisions [11]. - The recent pullback in stock prices is viewed as a healthy correction, making them attractive buy-the-dip targets given their reasonable valuations [11].