Group 1 - Groupon currently has an average brokerage recommendation (ABR) of 2.00, indicating a Buy, with three Strong Buy and one Buy recommendations from five brokerage firms [2] - The ABR reflects that Strong Buy and Buy recommendations account for 60% and 20% of all recommendations, respectively [2] - Analysts' growing optimism over Groupon's earnings prospects is indicated by a 31.1% increase in the Zacks Consensus Estimate for the current year, now at $0.8 [14] Group 2 - The Zacks Rank for Groupon is 1 (Strong Buy), driven by the recent change in consensus estimates and other factors related to earnings estimates [15] - The ABR should not be solely relied upon for investment decisions, as studies show limited success of brokerage recommendations in guiding investors [5][10] - The Zacks Rank is a more reliable indicator of a stock's near-term price performance, as it is based on earnings estimate revisions and is updated more frequently than the ABR [8][13]
Brokers Suggest Investing in Groupon (GRPN): Read This Before Placing a Bet