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Groupon (GRPN) Outpaces Stock Market Gains: What You Should Know

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In the latest market close, Groupon (GRPN - Free Report) reached $18.24, with a +1.39% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.16%. Meanwhile, the Dow experienced a rise of 0.01%, and the technology-dominated Nasdaq saw an increase of 0.46%.

Shares of the online daily deal service have appreciated by 50.8% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 5.51% and the S&P 500's loss of 3.59%.

The investment community will be closely monitoring the performance of Groupon in its forthcoming earnings report. In that report, analysts expect Groupon to post earnings of -$0.19 per share. This would mark a year-over-year decline of 416.67%. In the meantime, our current consensus estimate forecasts the revenue to be $115.71 million, indicating a 5.99% decline compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.21 per share and revenue of $495.97 million. These totals would mark changes of +86.09% and +0.69%, respectively, from last year.

Any recent changes to analyst estimates for Groupon should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 witnessed a 3.28% decrease. Groupon is holding a Zacks Rank of #4 (Sell) right now.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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