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Groupon (GRPN) Declines More Than Market: Some Information for Investors

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In the latest market close, Groupon (GRPN - Free Report) reached $16.74, with a -1.18% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.71%. On the other hand, the Dow registered a loss of 0.93%, and the technology-centric Nasdaq decreased by 0.81%.

Heading into today, shares of the online daily deal service had gained 15.63% over the past month, outpacing the Retail-Wholesale sector's loss of 0.03% and the S&P 500's gain of 1.08% in that time.

Market participants will be closely following the financial results of Groupon in its upcoming release. The company is expected to report EPS of -$0.01, up 90% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $121.7 million, showing a 5.74% drop compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.65 per share and a revenue of $521.41 million, indicating changes of +225% and +1.26%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Groupon. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

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. Groupon is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, Groupon currently has a Forward P/E ratio of 26.26. This expresses a premium compared to the average Forward P/E of 21.11 of its industry.

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 52, placing it within the top 21% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow GRPN in the coming trading sessions, be sure to utilize Zacks.com.


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