Groupon (GRPN) Exceeds Market Returns: Some Facts to Consider

Groupon (GRPN) closed the most recent trading day at $23.25, moving +2.24% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.26%. Elsewhere, the Dow saw an upswing of 0.15%, while the tech-heavy Nasdaq appreciated by 0.48%. Coming into today, shares of the online daily deal service had lost 12.87% in the past month. In that same time, the Retail-Wholesale sector gained 0.76%, while the S&P 500 gained 2.87%. Investors will be eagerly watching for the performance of Groupon in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.01, indicating a 96.97% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $121.88 million, up 6.47% from the prior-year quarter. GRPN's full-year Zacks Consensus Estimates are calling for earnings of $0.8 per share and revenue of $504.5 million. These results would represent year-over-year changes of +152.98% and +2.42%, respectively. Any recent changes to analyst estimates for Groupon should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Groupon is holding a Zacks Rank of #1 (Strong Buy) right now. Valuation is also important, so investors should note that Groupon has a Forward P/E ratio of 28.42 right now. For comparison, its industry has an average Forward P/E of 22.36, 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 71, placing it within the top 29% 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. Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks