Groupon (GRPN) closed the most recent trading day at $16.16, moving -3.18% from the previous trading session. This change lagged the S&P 500's 0.06% loss on the day. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq lost 0.06%.
Coming into today, shares of the online daily deal service had gained 1.27% in the past month. In that same time, the Retail-Wholesale sector gained 5.39%, while the S&P 500 gained 1.99%.
Market participants will be closely following the financial results of Groupon in its upcoming release. The company's upcoming EPS is projected at $0.19, signifying a 115.83% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $137.94 million, up 5.8% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$2.09 per share and revenue of $503.65 million. These totals would mark changes of -38.41% and 0%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Groupon. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 14.29% decrease. Groupon is currently a Zacks Rank #3 (Hold).
In terms of valuation, Groupon is currently trading at a Forward P/E ratio of 22.55. This signifies a premium in comparison to the average Forward P/E of 17.11 for its industry.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 178, this industry ranks in the bottom 28% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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