Core Viewpoint - Groupon (GRPN) is experiencing significant selling pressure, with a 19.8% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by analysts predicting better-than-expected earnings [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that helps identify whether a stock is oversold, with readings below 30 indicating oversold conditions [2] - GRPN's current RSI reading is 17.52, suggesting that the heavy selling may be exhausting itself, indicating a potential reversal towards a more balanced supply and demand [5] Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts to raise earnings estimates for GRPN, with a 31.1% increase in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [7] - GRPN holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further indicating a potential turnaround [8]
Down 19.8% in 4 Weeks, Here's Why Groupon (GRPN) Looks Ripe for a Turnaround