Groupon (GRPN) ended the recent trading session at $12.92, demonstrating a +2.62% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.8%. Meanwhile, the Dow experienced a drop of 0.15%, and the technology-dominated Nasdaq saw an increase of 1.6%.
Shares of the online daily deal service witnessed a gain of 16.57% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 7.22%, and the S&P 500's gain of 5.15%.
The investment community will be closely monitoring the performance of Groupon in its forthcoming earnings report. The company's upcoming EPS is projected at -$0.02, signifying a 111.11% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $117.26 million, indicating a 0.06% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.28 per share and revenue of $514.72 million. These totals would mark changes of +113.59% and +3.27%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Groupon. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 20.19% lower. At present, Groupon boasts a Zacks Rank of #4 (Sell).
Looking at valuation, Groupon is presently trading at a Forward P/E ratio of 45.51. For comparison, its industry has an average Forward P/E of 16.58, which means Groupon is trading at a premium to the group.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Groupon, Inc. (GRPN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).