Groupon (GRPN) closed the most recent trading day at $32.33, moving -1.01% from the previous trading session. This change lagged the S&P 500's 0.38% gain on the day. Elsewhere, the Dow saw an upswing of 0.24%, while the tech-heavy Nasdaq appreciated by 0.24%.
Shares of the online daily deal service have appreciated by 29.5% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 2.95%, and the S&P 500's gain of 6.6%.
Market participants will be closely following the financial results of Groupon in its upcoming release. On that day, Groupon is projected to report earnings of -$0.05 per share, which would represent a year-over-year decline of 150%. Meanwhile, our latest consensus estimate is calling for revenue of $122.86 million, down 1.41% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.2 per share and a revenue of $500.25 million, signifying shifts of +113.25% and +1.56%, respectively, from the 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 shifted 254.9% upward. Groupon is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Groupon is currently trading at a Forward P/E ratio of 165.37. This represents a premium compared to its industry average Forward P/E of 25.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 74, placing it within the top 31% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.
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
