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Groupon (GRPN) Surpasses Market Returns: Some Facts Worth Knowing

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Groupon (GRPN - Free Report) closed the most recent trading day at $11.50, moving +2.77% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.11%. Meanwhile, the Dow experienced a drop of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.18%.

Heading into today, shares of the online daily deal service had lost 10.41% over the past month, lagging the Retail-Wholesale sector's loss of 3.81% and the S&P 500's loss of 4.28%.

Analysts and investors alike will be keeping a close eye on the performance of Groupon in its upcoming earnings disclosure. The company is expected to report EPS of -$0.02, down 111.11% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $117.26 million, indicating a 0.06% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.28 per share and revenue of $514.72 million, which would represent changes of +113.59% and +3.27%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Groupon. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 62.61% lower. Groupon currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, Groupon is holding a Forward P/E ratio of 40.45. This indicates a premium in contrast to its industry's Forward P/E of 15.83.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 177, finds itself in the bottom 28% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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