Groupon (GRPN) closed the most recent trading day at $11.49, moving -4.01% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.62% for the day. Elsewhere, the Dow gained 0.58%, while the tech-heavy Nasdaq added 0.83%.
Shares of the online daily deal service witnessed a gain of 8.03% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 0.96%, and the S&P 500's gain of 0.8%.
Investors will be eagerly watching for the performance of Groupon in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of -$0.02, marking a 111.11% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $117.26 million, up 0.06% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.28 per share and revenue of $514.72 million, indicating changes of +113.59% and +3.27%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Groupon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 58.5% downward. Groupon presently features a Zacks Rank of #4 (Sell).
Looking at valuation, Groupon is presently trading at a Forward P/E ratio of 43.26. This expresses a premium compared to the average Forward P/E of 16.2 of its industry.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 164, placing it within the bottom 33% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Groupon, Inc. (GRPN): Free Stock Analysis Report
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