In the latest trading session, Groupon (GRPN) closed at $21.91, marking a -1.66% move from the previous day. This move lagged the S&P 500's daily loss of 0.1%. On the other hand, the Dow registered a gain of 0.57%, and the technology-centric Nasdaq decreased by 0.33%.
Heading into today, shares of the online daily deal service had lost 19.8% over the past month, lagging the Retail-Wholesale sector's gain of 2.91% and the S&P 500's gain of 2.57%.
Market participants will be closely following the financial results of Groupon in its upcoming release. In that report, analysts expect Groupon to post earnings of $0.01 per share. This would mark a year-over-year decline of 96.97%. Meanwhile, our latest consensus estimate is calling for revenue of $121.88 million, up 6.47% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.8 per share and revenue of $504.5 million, which would represent changes of +152.98% and +2.42%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Groupon. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 31.11% upward. Groupon is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Groupon currently has a Forward P/E ratio of 27.85. Its industry sports an average Forward P/E of 20.82, so one might conclude that Groupon is trading at a premium comparatively.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 93, this industry ranks in the top 38% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Groupon, Inc. (GRPN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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