In the latest close session, Groupon (GRPN) was down 2.11% at $13.01. This change lagged the S&P 500's 0.47% gain on the day. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq gained 0.9%.
Shares of the online daily deal service witnessed a loss of 19.41% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 1.03%, and the S&P 500's loss of 0.16%.
The investment community will be closely monitoring the performance of Groupon in its forthcoming earnings report. The company is forecasted to report an EPS of $0.19, showcasing a 115.83% upward movement from the corresponding quarter of the prior 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 +2.25%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Groupon. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding 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 holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Groupon has a Forward P/E ratio of 17.96 right now. This valuation marks a premium compared to its industry average Forward P/E of 14.98.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 158, finds itself in the bottom 36% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow GRPN in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Groupon, Inc. (GRPN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
