Groupon (GRPN) ended the recent trading session at $14.41, demonstrating a +1.84% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.54%. Meanwhile, the Dow gained 1.05%, and the Nasdaq, a tech-heavy index, added 0.56%.
The stock of online daily deal service has fallen by 18.26% in the past month, lagging the Retail-Wholesale sector's gain of 3.66% and the S&P 500's gain of 0.74%.
The upcoming earnings release of Groupon will be of great interest to investors. The company is expected to report EPS of $0.19, up 115.83% from the prior-year quarter. 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.
Any recent changes to analyst estimates for Groupon should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 14.29% lower. Groupon is currently a Zacks Rank #4 (Sell).
From a valuation perspective, Groupon is currently exchanging hands at a Forward P/E ratio of 19.12. This signifies a premium in comparison to the average Forward P/E of 16.07 for its industry.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 179, this industry ranks in the bottom 27% 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.
You 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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