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Groupon (GRPN) Advances While Market Declines: Some Information for Investors

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Groupon (GRPN - Free Report) ended the recent trading session at $37.03, demonstrating a +2.76% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.03%. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq gained 0.13%.

The stock of online daily deal service has risen by 35.62% in the past month, leading the Retail-Wholesale sector's gain of 0.2% and the S&P 500's gain of 0.6%.

Analysts and investors alike will be keeping a close eye on the performance of Groupon in its upcoming earnings disclosure. The company is predicted to post an EPS of -$0.05, indicating a 150% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $122.86 million, indicating a 1.41% downward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.2 per share and a revenue of $500.25 million, signifying shifts of +113.25% and +1.56%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Groupon. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 515.79% higher. Groupon presently features a Zacks Rank of #2 (Buy).

From a valuation perspective, Groupon is currently exchanging hands at a Forward P/E ratio of 182.46. This valuation marks a premium compared to its industry average Forward P/E of 24.96.

The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 40% of all industries, numbering over 250.

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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