Groupon (GRPN) closed the most recent trading day at $36.53, moving -2.25% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.61%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 0.95%.
The stock of online daily deal service has risen by 14.6% in the past month, leading the Retail-Wholesale sector's gain of 0.8% and the S&P 500's gain of 3.85%.
Market participants will be closely following the financial results of Groupon in its upcoming release. The company is forecasted to report an EPS of -$0.02, showcasing no movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $122.86 million, indicating a 1.41% downward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.3 per share and a revenue of $500.25 million, representing changes of +119.87% and +1.56%, 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 shifted 21.33% upward. Groupon is currently sporting a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Groupon is currently exchanging hands at a Forward P/E ratio of 123.2. This valuation marks a premium compared to its industry average Forward P/E of 24.79.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% of all 250+ industries.
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.
Story ContinuesYou can find more information on all of these metrics, and much more, on Zacks.com.
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Groupon, Inc. (GRPN) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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