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Groupon (GRPN) Laps the Stock Market: Here's Why

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Groupon (GRPN - Free Report) closed the most recent trading day at $19.71, moving +2.07% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.66%. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 1.05%.

The online daily deal service's stock has climbed by 2.33% in the past month, exceeding the Retail-Wholesale sector's loss of 4.61% and the S&P 500's gain of 0.55%.

The investment community will be closely monitoring the performance of Groupon in its forthcoming earnings report. The company is forecasted to report an EPS of -$0.01, showcasing a 99.66% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $129.41 million, indicating a 5.37% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of -$0.14 per share and revenue of $517.75 million, which would represent changes of +93.2% and +3.88%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Groupon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Groupon boasts a Zacks Rank of #3 (Hold).

The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 200, this industry ranks in the bottom 19% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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