Groupon (GRPN) Stock Drops Despite Market Gains: Important Facts to Note

Groupon (GRPN) closed the most recent trading day at $33.21, moving -3.01% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.07%. Elsewhere, the Dow lost 0.7%, while the tech-heavy Nasdaq added 0.18%. The online daily deal service's stock has dropped by 4.2% in the past month, falling short of the Retail-Wholesale sector's gain of 5.27% and the S&P 500's gain of 5.71%.The investment community will be paying close attention to the earnings performance of Groupon in its upcoming release. The company is predicted to post an EPS of -$0.02, indicating constancy compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $122.86 million, down 1.41% from the prior-year quarter. For the full year, the Zacks Consensus Estimates project earnings of $0.3 per share and a revenue of $500.25 million, demonstrating changes of +119.87% and +1.56%, respectively, from the preceding year. Investors should also pay attention to any latest changes in analyst estimates for Groupon. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. 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 remained steady. Currently, Groupon is carrying a Zacks Rank of #1 (Strong Buy). From a valuation perspective, Groupon is currently exchanging hands at a Forward P/E ratio of 112.88. This represents a premium compared to its industry average Forward P/E of 23.1. The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 67, putting it in the top 28% of all 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. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. Should You Invest in Groupon, Inc. (GRPN)?Before you invest in Groupon, Inc. (GRPN), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)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 ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks