Groupon (GRPN) closed at $14.21 in the latest trading session, marking a -8.44% move from the prior day. The stock's change was less than the S&P 500's daily gain of 1.2%. Elsewhere, the Dow gained 1.79%, while the tech-heavy Nasdaq added 1.52%.
The online daily deal service's stock has climbed by 41.35% in the past month, exceeding the Retail-Wholesale sector's gain of 6.55% 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.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.28 per share and a revenue of $514.72 million, signifying shifts of +113.59% and +3.27%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Groupon. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 20.19% decrease. Groupon is currently sporting a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Groupon has a Forward P/E ratio of 56.1 right now. This represents a premium compared to its industry average Forward P/E of 16.86.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 38% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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