Groupon (GRPN) Suffers a Larger Drop Than the General Market: Key Insights

Zacks
03-05

In the latest trading session, Groupon (GRPN) closed at $10.26, marking a -1.63% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 1.22%. At the same time, the Dow lost 1.55%, and the tech-heavy Nasdaq lost 0.35%.

The online daily deal service's stock has by 0% in the past month, exceeding the Retail-Wholesale sector's loss of 4.52% and the S&P 500's loss of 2.31%.

The upcoming earnings release of Groupon will be of great interest to investors. The company is forecasted to report an EPS of -$0.06, showcasing a 120% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $128.92 million, indicating a 6.39% decrease compared to the same quarter of the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Groupon. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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, there's been no change in the Zacks Consensus EPS estimate. Groupon currently has a Zacks Rank of #3 (Hold).

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 35, finds itself in the top 14% echelons of all 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Groupon, Inc. (GRPN) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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