What Makes Groupon (GRPN) a Strong Momentum Stock: Buy Now?

Core Insights - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] - The Zacks Momentum Style Score helps investors identify stocks with strong momentum, addressing the challenges of defining momentum [2] Company Overview: Groupon (GRPN) - Groupon currently holds a Momentum Style Score of B, indicating potential for solid momentum [3] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4] Performance Metrics - Over the past week, GRPN shares increased by 2.88%, while the Zacks Internet - Commerce industry remained flat [6] - In the last month, GRPN's price change was 63.47%, significantly outperforming the industry's 3.89% [6] - Over the past quarter, GRPN shares surged by 176.38%, and gained 84.02% over the last year, compared to the S&P 500's -0.52% and 14.2% respectively [7] Trading Volume - GRPN's average 20-day trading volume is 1,764,950 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - Recent earnings estimate revisions for GRPN have been positive, with three estimates moving higher and none lower, raising the consensus estimate from -$0.14 to $0.20 over the past 60 days [10] - For the next fiscal year, two estimates have increased with no downward revisions, indicating a favorable earnings outlook [10] Conclusion - Considering the positive momentum indicators and earnings outlook, GRPN is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [12]