Why Groupon Is An Attractive Buy – CWEB.com

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Why Groupon Is An Attractive Buy – CWEB.com

Groupon has the number one retail app . Their customer satisfaction rating is at 90%. Groupon Inc. (NASDAQ:GRPN) has a new successful marketing campaign which has been in placed for a long time.

Groupon Inc. (NASDAQ:GRPN) has a market cap of $2Billion.

NASDAQ reports a 1 Year Price Target of 8.25 per share.

The 50 Day Avg. Daily Volume 9,665,737. Like Overstock they both have a moderate growth rate for the next three years. In fact, Overstock has a mediocre balance sheet, while Groupon has a solid track record.

Overstock (NASDAQ:OSTK) is trading close to $60

Overstock’s stock plummeted due to the regulatory filing this past Thursday showing the SEC asked the retailer for information about Zero’s initial coin offering. Simply put, (NASDAQ:OSTK) drops after the SEC investigation into cryptocurrency token sale.

We see Groupon has the potential to outperform some of its competitors, due its aggressive growth strategies and new online campaigns featuring

Analysts who cover the stock are very optimistic. Profits they say should 55.63% in 2019, compared with the past 5-year average growth rate of 30.43%. In 2019, analysts say Groupon’s bottom line is expected to climb to $24.9M, an increase from the current $16.0M.

Groupon’s earnings growth is expected to exceed the low risk savings rate of 4.5%.

Annual growth rates for Groupon are expected to be at 33.1%, above the online growth rate for the retail sector. Groupon’s earnings are expected to grow significantly at over 20% per year.

  • In the past 5 years Groupon has delivered over 20% year on year earnings growth.
  • Return on capital employed has improved significantly versus 3 years ago.
  • Institutions still hold the largest share equity stake for (NASDAQ:GRPN) stock.

Groupon (NASDAQ:GRPN) competitors are: 

Overstock (NASDAQ:OSTK) which trades $60

Walmart (NYSE:WMT) which trades around $88

Etsy (NASDAQ:ETSY) which trades around $25

Gap (NYSE:GPS) which trades around $34

BABA (NYSE:BABA) which trades around $180

Amazon ( NASDAQ:AMZN) which trades around $1500

So relatively to other competitors Groupon (NASDAQ:GRPN) at $4 is a great deal for long term investors, institutional holdings and regular stock traders.

CWEB Analyst’s have initiated a Buy Rating for (NASDAQ:GRPN)and a Price Target of $15 within 12 months.

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GRPN data by YCharts

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