In the latest trading session, Groupon (GRPN) closed at $14.62, marking a -8.22% move from the previous day. This move lagged the S&P 500's daily loss of 0.41%. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.89%.
The online daily deal service's stock has climbed by 41.22% in the past month, exceeding the Retail-Wholesale sector's gain of 13.14% and the S&P 500's gain of 9.71%.
Analysts and investors alike will be keeping a close eye on the performance of Groupon in its upcoming earnings disclosure. In that report, analysts expect Groupon to post earnings of -$0.02 per share. This would mark a year-over-year decline of 111.11%. Alongside, our most recent consensus estimate is anticipating revenue of $117.26 million, indicating a 0.06% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.28 per share and revenue of $514.72 million, which would represent changes of +113.59% and +3.27%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Groupon. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Groupon is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Groupon is presently being traded at a Forward P/E ratio of 57.58. This signifies a premium in comparison to the average Forward P/E of 17.61 for its industry.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 178, finds itself in the bottom 28% echelons of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many 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).

