Groupon, Inc. (GRPN) Is a Trending Stock: Facts to Know Before Betting on It

Core Viewpoint - Groupon has experienced a significant increase in stock performance, returning +41.1% over the past month, outperforming the S&P 500's +4.2% and the Internet - Commerce industry’s +3.5% [1] Earnings Estimates - For the current quarter, Groupon is expected to report a loss of $0.16 per share, a decrease of -60% year-over-year, with the consensus estimate remaining unchanged [3] - The consensus earnings estimate for the current fiscal year is $0.05, reflecting a year-over-year increase of +109.6%, also unchanged over the last 30 days [3] - For the next fiscal year, the consensus estimate is $0.33, indicating a substantial increase of +560% compared to the previous year, with no changes in the estimate over the past month [3] Revenue Growth - The consensus sales estimate for the current quarter is $123.83 million, showing a year-over-year decline of -4.1% [6] - The sales estimates for the current and next fiscal years are $539.26 million and $579.85 million, indicating increases of +4.7% and +7.5%, respectively [6] Recent Performance - Groupon reported revenues of $123.08 million in the last quarter, a year-over-year increase of +1.2%, and an EPS of $0.06 compared to -$0.65 a year ago [7] - The reported revenues exceeded the Zacks Consensus Estimate of $118.37 million by +3.98%, and the EPS surprise was +133.33% [7] - The company has consistently beaten consensus EPS estimates in the last four quarters and topped revenue estimates three times during this period [7] Valuation - Groupon's valuation is assessed through various multiples, including price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to determine if the stock is fairly valued [8] - The Zacks Value Style Score grades Groupon as C, indicating it is trading at par with its peers [10] Market Outlook - The Zacks Rank 1 (Strong Buy) for Groupon suggests potential for outperforming the broader market in the near term [11]