Up 230% YTD, Groupon Stock Is a Deal You Can’t Ignore

• Groupon (GRPN) shows strong technical momentum and is trading near its 52-week high.
• GRPN has a 100% technical “Buy” signal via Barchart.
• Shares are up nearly 230% in the year to date.
• The stock is trading above key moving averages, has a high Weighted Alpha, and has made 15 new highs in the past month.

Today’s Featured Stock:

Valued at $1.47 billion, Groupon (GRPN) operates a website that offers daily discount deals. Through its Local Deals, the company acts as a third-party marketing agent and sells vouchers known as Groupons, which users can redeem against products or services at merchant locations.  

What I’m Watching:

I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. GRPN checks those boxes. Since the Trend Seeker signaled a buy on May 8, the stock has gained nearly 53%.

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GRPN Price vs. Daily Moving Averages:

www.barchart.com

Barchart Technical Indicators for Groupon:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

When a stock is trading only 0.6% below its 52-week high, it won’t take much to hit another new high.

• Groupon has a 100% technical “Buy” signal.
• The stock recently traded at $40.75, above its 50-day moving average of $25.38.
• GRPN has a Weighted Alpha of +192.68.
• The stock has gained 178.6% over the past year.
• GRPN has its Trend Seeker “Buy” signal intact.
• Groupon is trading above its 20, 50 and 100-day moving averages.
• The stock has made 15 new highs and gained 53.6% in the last month.
• Relative Strength Index is at 85.23%.
• The technical support level is $35.80.

Follow the Fundamentals:

• $1.47 billion market capitalization.
• Revenue is projected to grow 1.45% this year and another 7.33% next year.
• Although earnings are estimated to decrease 83.79% this year, they are expected to increase again by 450% next year.

Analyst and Investor Sentiment on Groupon:

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like not only Wall Street analysts are split, but also many of the popular investing advisory services don't agree on this stock.

• Wall Street analysts tracked by Barchart issued two “Strong Buy,” one “Moderate Buy,” and one “Sell” opinion on the stock.
• Value Line gives the stock its highest rating for price appreciation in the coming year.
• CFRA’s MarketScope rates the stock a “Buy.”
• MorningStar thinks the stock is 20% overvalued.
• 56,940 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line:

Groupon currently has momentum and support from both the market and individual investors but has competition from much larger Airbnb (ABNB) and Bookings.com (BKNG).

I caution that GRPN is volatile and speculative — use strict risk management and stop-loss strategies.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.

On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.