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Groupon (GRPN) Increases Despite Market Slip: Here's What You Need to Know

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In the latest trading session, Groupon (GRPN - Free Report) closed at $21.41, marking a +1.1% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.16%. Meanwhile, the Dow experienced a rise of 0.44%, and the technology-dominated Nasdaq saw a decrease of 0.76%.

The online daily deal service's stock has dropped by 5.99% in the past month, falling short of the Retail-Wholesale sector's loss of 4.08% and the S&P 500's gain of 1.14%.

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 $0.01, reflecting a 96.97% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $121.88 million, up 6.47% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $0.8 per share and a revenue of $504.5 million, demonstrating changes of +152.98% and +2.42%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for Groupon. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Groupon is carrying a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Groupon is presently being traded at a Forward P/E ratio of 26.48. This signifies a premium in comparison to the average Forward P/E of 21.38 for its industry.

The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 88, this industry ranks in the top 36% 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.

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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