Yahoo Finance Why the Market Dipped But Groupon (GRPN) Gained Today
In the latest trading session, Groupon (GRPN) closed at $15.30, marking a +1.73% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.41%. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, lost 0.71%.
The the stock of online daily deal service has fallen by 5.05% in the past month, lagging the Retail-Wholesale sector's gain of 2.65% and the S&P 500's gain of 3.53%.
Market participants will be closely following the financial results of Groupon in its upcoming release. The company's upcoming EPS is projected at -$0.16, signifying a 60% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $121.6 million, showing a 5.82% drop compared to the year-ago quarter.
GRPN's full-year Zacks Consensus Estimates are calling for earnings of $0.30 per share and revenue of $526.76 million. These results would represent year-over-year changes of +157.69% and +2.3%, respectively.
It's also important for investors to be aware of any recent modifications 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 106.45% increase. At present, Groupon boasts a Zacks Rank of #1 (Strong Buy).
Investors should also note Groupon's current valuation metrics, including its Forward P/E ratio of 50.13. This represents a premium compared to its industry's average Forward P/E of 21.05.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 75, placing it within the top 30% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Groupon, Inc. (GRPN): Free Stock Analysis Report
