Groupon is set to announce earnings Tuesday, Feb 16th, 2021 and is looking positive for an earnings estimate revision which is a precursor to a possible earnings beat. Groupon (NASDAQ:GRPN) has done quite well since its 1-for-20 split this past summer. With Revenue (MRQ) of 1.686B and Gross Margin (MRQ) at 47.95% it’s time to take a look at Groupon stock.
There is a great opportunity to buy Groupon at these levels over a company like Etsy, which is highly overvalued. Etsy (ETSY)is trading at an astronomically rich 14x forward revenue multiple. Etsy’s best-performing categories, such as masks and housewares, will fadeout when the pandemic fades. Groupon will be back in the game again once we recover from COVID-19 with massive revenue opportunities for restaurants and travel.
Groupon has the advantage over Etsy offering both in its Good Marketplace, selling daily deals, and offering consumer experiences as travel, concert, and dining discounts due to cities easing lockdown restraints.
While Groupon (GRPN) may deliver a year-over-year decline in earnings on lower revenues for the quarter ended December 2020, it may make the stock rise higher, if these numbers beat expectations.
It’s Groupon misses expectations, the stock may fall lower, and this would be a great opportunity to buy. Management’s discussion on the earnings the call will give a determination how the stock will change and what the future earnings expectations will be.
Expectations for Groupon are expected to post a quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of -112.9%.
Market Cap Micro Cap $1.0B
Shares Outstanding 28.8M
Shares held by Institutions 62.63%
Enterprise Value $672.6M
Trend Analysis
GRPN appears to be consolidating within a longer-term uptrend. Shares are presently above the 200-day moving average, which is rising along with the 10-day moving average. However, the Average Directional Index, or ADX, is below 20, indicating that shares have exhibited sideways movement recently. Comparative Relative Strength analysis shows that this issue is lagging the S&P 500. Source: Charles Schwab.
Momentum and Volume
Momentum for GRPN is strongly bullish. The 14-period Slow Stochastic Oscillator is rising, as investors pay higher prices for shares. The On Balance Volume indicator (OBV) is bullish. The slope of the indicator is positive and suggests that buyers are presently more active than sellers. Source: Charles Schwab.
CWEB Analysts view the stock Groupon (NASDAQ:GRPN) as a long term growth and a great addition to your investment portfolio with an upward momentum of $60-$150 by 2021 with direct competition to Amazon and Etsy.
