Groupon (GRPN) closed the most recent trading day at $37.37, moving +1.8% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.07% for the day. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, added 0.03%.
Shares of the online daily deal service witnessed a gain of 17.17% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 1.87%, and the S&P 500's gain of 3.94%.
Analysts and investors alike will be keeping a close eye on the performance of Groupon in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of -$0.02, marking stability compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $122.86 million, showing a 1.41% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.3 per share and revenue of $500.25 million. These totals would mark changes of +119.87% and +1.56%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Groupon. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 21.33% higher. Groupon currently has a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Groupon has a Forward P/E ratio of 121.02 right now. For comparison, its industry has an average Forward P/E of 25, 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 62, positioning it in the top 26% of all 250+ industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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