Groupon (GRPN) Stock Moves -1.24%: What You Should Know

In the latest close session, Groupon (GRPN) was down 1.24% at $11.14. This move was narrower than the S&P 500's daily loss of 1.74%. Meanwhile, the Dow experienced a drop of 1.01%, and the technology-dominated Nasdaq saw a decrease of 2.38%.

The online daily deal service's shares have seen a decrease of 8.66% over the last month, not keeping up with the Retail-Wholesale sector's loss of 3.4% and the S&P 500's loss of 4.99%.

Market participants will be closely following the financial results of Groupon in its upcoming release. The company's upcoming EPS is projected at $0, signifying a 100.00% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $117.27 million, up 0.07% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $0.35 per share and a revenue of $514.73 million, demonstrating changes of +116.99% and +3.27%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Groupon. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the 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.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 53.15% lower. Groupon currently has a Zacks Rank of #4 (Sell).

Looking at valuation, Groupon is presently trading at a Forward P/E ratio of 32.54. This indicates a premium in contrast to its industry's Forward P/E of 15.46.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 167, finds itself in the bottom 32% 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.

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