Back to top

Image: Bigstock

Is Groupon (GRPN) Stock Outpacing Its Retail-Wholesale Peers This Year?

Read MoreHide Full Article

The Retail-Wholesale group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Groupon (GRPN - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.

Groupon is one of 183 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Groupon is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for GRPN's full-year earnings has moved 10.6% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, GRPN has gained about 5.8% so far this year. In comparison, Retail-Wholesale companies have returned an average of -0.3%. As we can see, Groupon is performing better than its sector in the calendar year.

Another stock in the Retail-Wholesale sector, Target (TGT - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 57.2%.

In Target's case, the consensus EPS estimate for the current year increased 6.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, Groupon belongs to the Internet - Commerce industry, a group that includes 31 individual stocks and currently sits at #101 in the Zacks Industry Rank. On average, this group has gained an average of 3.6% so far this year, meaning that GRPN is performing better in terms of year-to-date returns.

Target, however, belongs to the Retail - Discount Stores industry. Currently, this 7-stock industry is ranked #16. The industry has moved +8.5% so far this year.

Groupon and Target could continue their solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to these stocks.

Published in