Yahoo Finance Groupon (GRPN) Outpaces Stock Market Gains: What You Should Know
In the latest market close, Groupon (GRPN) reached $15.04, with a +1.01% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.09%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.3%.
Shares of the online daily deal service witnessed a loss of 0.73% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 1.99% and the S&P 500's gain of 3.38%.
Analysts and investors alike will be keeping a close eye on the performance of Groupon in its upcoming earnings disclosure. In that report, analysts expect Groupon to post earnings of -$0.16 per share. This would mark a year-over-year decline of 60%. Alongside, our most recent consensus estimate is anticipating revenue of $121.6 million, indicating a 5.82% downward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.30 per share and revenue of $526.76 million, which would represent changes of +157.69% and +2.3%, respectively, from the prior year.
It is also important to note the recent changes 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 company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 moved 106.45% higher. As of now, Groupon holds a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Groupon is holding a Forward P/E ratio of 49.63. For comparison, its industry has an average Forward P/E of 21.37, which means Groupon is trading at a premium to the group.
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 30% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Groupon, Inc. (GRPN) : Free Stock Analysis Report
