Groupon (GRPN) Rises Yet Lags Behind Market: Some Facts Worth Knowing

Zacks
02-11

The most recent trading session ended with Groupon (GRPN) standing at $11.76, reflecting a +0.09% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.67% for the day. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 0.98%.

Heading into today, shares of the online daily deal service had lost 3.37% over the past month, lagging the Retail-Wholesale sector's gain of 7.15% and the S&P 500's gain of 2.07% in that time.

Investors will be eagerly watching for the performance of Groupon in its upcoming earnings disclosure. The company is forecasted to report an EPS of -$0.06, showcasing a 120% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $128.92 million, down 6.39% from the year-ago period.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Groupon. These revisions help to show the ever-changing nature of near-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. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Groupon currently has a Zacks Rank of #3 (Hold).

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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