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

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In the latest trading session, Groupon (GRPN - Free Report) closed at $16.87, marking a +1.81% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.41%. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, added 1.11%.

Coming into today, shares of the online daily deal service had lost 13.16% in the past month. In that same time, the Retail-Wholesale sector gained 3.83%, while the S&P 500 gained 1.46%.

Analysts and investors alike will be keeping a close eye on the performance of Groupon in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of -$0.01, marking a 99.66% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $129.41 million, indicating a 5.37% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of -$0.14 per share and a revenue of $517.75 million, demonstrating changes of +93.2% and +3.88%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Groupon. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Groupon is carrying a Zacks Rank of #2 (Buy).

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 179, placing it within the bottom 28% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.

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