Are Investors Undervaluing Groupon (GRPN) Right Now?

Core Insights - The Zacks Rank system emphasizes earnings estimates and revisions to identify winning stocks, with a focus on value investing as a successful strategy across various market conditions [1] - Value investors utilize fundamental analysis to identify undervalued companies, with the Zacks Rank and Style Scores system aiding in stock selection [1] Company Analysis: Groupon (GRPN) - Groupon currently has a Zacks Rank of 2 (Buy) and a Value grade of A, with a P/E ratio of 12.92 compared to the industry average of 25.24 [2] - The Forward P/E for Groupon has fluctuated significantly, reaching a high of 3,543.17 and a low of -39,419.83, with a median of 74.21 [2] - Groupon's P/S ratio stands at 0.79, lower than the industry average of 1.12, indicating potential undervaluation [2] Company Analysis: JD.com (JD) - JD.com is rated 1 (Strong Buy) with a Value score of A, trading at a forward earnings multiple of 9.44 and a PEG ratio of 0.54, significantly lower than the industry averages of 25.24 and 1.08 respectively [3] - The Forward P/E for JD.com has ranged from a high of 11.39 to a low of 6.31, with a median of 8.39 [3] - JD.com has a P/B ratio of 1.59, compared to the industry's price-to-book ratio of 5.31, further suggesting it may be undervalued [3]