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Wall Street Bulls Look Optimistic About Groupon (GRPN): Should You Buy?
ZACKSยท 2025-09-03 14:31
Group 1 - The average brokerage recommendation (ABR) for Groupon (GRPN) is 2.00, indicating a Buy, with 60% of recommendations being Strong Buy and 20% being Buy [2][5] - Brokerage recommendations may not effectively guide investors, as studies show they have little success in identifying stocks with high potential for price appreciation [5][10] - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, with five "Strong Buy" recommendations for every "Strong Sell" [6][10] Group 2 - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell) and is based on earnings estimate revisions, showing a strong correlation with near-term stock price movements [8][11] - The Zacks Consensus Estimate for Groupon has increased by 94.5% over the past month to $0.8, indicating growing optimism among analysts regarding the company's earnings prospects [13] - The recent change in the consensus estimate, along with other factors, has resulted in a Zacks Rank 1 (Strong Buy) for Groupon, suggesting that the Buy-equivalent ABR may be a useful guide for investors [14]