Groupon (GRPN) closed at $18.94 in the latest trading session, marking a -0.58% move from the prior day. This change lagged the S&P 500's 0.79% gain on the day. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq added 0.64%.
Shares of the online daily deal service have appreciated by 28.28% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 3.65% and the S&P 500's loss of 3.56%.
The upcoming earnings release of Groupon will be of great interest to investors. It is anticipated that the company will report an EPS of -$0.20, marking a 433.33% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $115.5 million, down 6.16% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$0.25 per share and revenue of $497.1 million, indicating changes of +83.44% and +0.92%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Groupon should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 21.72% lower. Groupon is currently sporting a Zacks Rank of #3 (Hold).
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 64, this industry ranks in the top 26% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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