Back to top

Image: Bigstock

Groupon (GRPN) Stock Falls Amid Market Uptick: What Investors Need to Know

Read MoreHide Full Article

Groupon (GRPN - Free Report) ended the recent trading session at $22.57, demonstrating a -1.7% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.37%. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq appreciated by 0.71%.

Shares of the online daily deal service have depreciated by 4.37% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 0.38%, and the S&P 500's gain of 4.26%.

Analysts and investors alike will be keeping a close eye on the performance of Groupon in its upcoming earnings disclosure. In that report, analysts expect Groupon to post earnings of $0.01 per share. This would mark a year-over-year decline of 96.97%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $121.88 million, up 6.47% from the year-ago period.

GRPN's full-year Zacks Consensus Estimates are calling for earnings of $0.8 per share and revenue of $504.5 million. These results would represent year-over-year changes of +152.98% and +2.42%, respectively.

Any recent changes to analyst estimates for Groupon should also be noted by investors. 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.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 remained steady. Groupon is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, Groupon is presently being traded at a Forward P/E ratio of 28.7. This denotes a premium relative to the industry average Forward P/E of 21.56.

The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 44, this industry ranks in the top 18% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Groupon, Inc. (GRPN) - free report >>

Published in