Groupon (GRPN) closed at $15.78 in the latest trading session, marking a -2.23% move from the prior day. This change lagged the S&P 500's 0.41% gain on the day. Meanwhile, the Dow experienced a drop of 0.83%, and the technology-dominated Nasdaq saw an increase of 0.91%.
Shares of the online daily deal service witnessed a loss of 8.24% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 4.12%, and the S&P 500's gain of 0.38%.
The upcoming earnings release of Groupon will be of great interest to investors. It is anticipated that the company will report an EPS of $0.19, marking a 115.83% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $137.94 million, up 5.8% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of -$2.09 per share and a revenue of $503.65 million, demonstrating changes of -38.41% and 0%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Groupon. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 14.29% lower. At present, Groupon boasts a Zacks Rank of #4 (Sell).
With respect to valuation, Groupon is currently being traded at a Forward P/E ratio of 21.81. This valuation marks a premium compared to its industry average Forward P/E of 17.25.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 188, which puts it in the bottom 24% of all 250+ industries.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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