Groupon (GRPN) ended the recent trading session at $12.98, demonstrating a -3.78% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.28%. Meanwhile, the Dow experienced a drop of 0.54%, and the technology-dominated Nasdaq saw a decrease of 0.31%.
Shares of the online daily deal service have depreciated by 16.73% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 5.31%, and the S&P 500's loss of 0.76%.
Investors will be eagerly watching for the performance of Groupon in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.19, reflecting a 115.83% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $137.94 million, indicating a 5.8% upward movement from the same quarter last year.
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 +2.25%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Groupon. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Groupon is currently a Zacks Rank #3 (Hold).
With respect to valuation, Groupon is currently being traded at a Forward P/E ratio of 18.23. Its industry sports an average Forward P/E of 15.2, 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 191, this industry ranks in the bottom 23% 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.
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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