Groupon (GRPN) ended the recent trading session at $35.06, demonstrating a +2.25% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.48%. Elsewhere, the Dow saw a downswing of 0.02%, while the tech-heavy Nasdaq appreciated by 0.94%.
Heading into today, shares of the online daily deal service had gained 5.7% over the past month, outpacing the Retail-Wholesale sector's gain of 3.33% and the S&P 500's gain of 5.13%.
The investment community will be paying close attention to the earnings performance of Groupon in its upcoming release. The company's earnings per share (EPS) are projected to be -$0.02, reflecting no change from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $122.86 million, down 1.41% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.3 per share and a revenue of $500.25 million, signifying shifts of +119.87% and +1.56%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Groupon. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 21.33% increase. Groupon is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Groupon currently has a Forward P/E ratio of 113.04. For comparison, its industry has an average Forward P/E of 25.32, which means Groupon is trading at a premium to the group.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 63, positioning it in the top 26% 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.
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Groupon, Inc. (GRPN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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