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Groupon (GRPN) Rises Higher Than Market: Key Facts

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In the latest trading session, Groupon (GRPN - Free Report) closed at $32.52, marking a +0.25% move from the previous day. This move outpaced the S&P 500's daily gain of 0.01%. On the other hand, the Dow registered a loss of 0.22%, and the technology-centric Nasdaq increased by 0.32%.

The the stock of online daily deal service has risen by 91.73% in the past month, leading the Retail-Wholesale sector's gain of 4.04% and the S&P 500's gain of 5.2%.

Investors will be eagerly watching for the performance of Groupon in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be -$0.05, reflecting a 150% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $122.86 million, down 1.41% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.20 per share and revenue of $500.25 million, which would represent changes of +113.25% and +1.56%, respectively, from the prior year.

Any recent changes to analyst estimates for Groupon should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 179.8% upward. Groupon is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that Groupon has a Forward P/E ratio of 164.25 right now. For comparison, its industry has an average Forward P/E of 25.06, 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 72, which puts it in the top 30% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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