Updated Investment Thesis On Groupon, Inc. (GRPN), Lowe’s Companies, Inc. (LOW)

Groupon, Inc. (NASDAQ:GRPN)’s EPS was $0.04 as reported for the September quarter. In comparison, the same quarter a year ago had an EPS of $0.01. That means that its growth in general now stands at 300%. Therefore, a prediction of $0.02 given by the analysts brought a positive surprise of 100%. GRPN Sep 18 quarter revenue was $592.88 million, compared to $634.47 million recorded in same quarter last year, giving it a -7% growth rate. The company’s -$41.59 million revenue decline that quarter surprised Wall Street and investors will need to consider this as they assess the stock.

Groupon, Inc. (GRPN) currently trades at $3.08, which is lower by -2.22% its previous price. It has a total of 578.21 million outstanding shares, with an ATR of around 0.15. The company’s stock volume rose to 8.21 million, better than 7.53 million that represents its 50-day average. A 5-day decrease of about -3.14% in its price means GRPN is now -39.61% lower on year-to-date. The shares have surrendered $43415.92 since its $5.88 52-week high price recorded on 12th of December 2017. Overall, it has seen a growth rate of -46.06 over the last 12 months. The current price per share is $0.28 above the 52 week low of $2.80 set on 15th of November 2018.

4 analysts out of 16 Wall Street brokerage firms rate GRPN stock as a Buy, while 3 see it as a Sell. The rest 9 describe it as a Hold. The stock traded higher to an intra-day high of $3.1. At one point in session, its potential discontinued and the price was down to lows at $2.98. Analysts have set GRPN’s consensus price at $4.07, effectively giving it a 32.14% projection on returns. Should the projected estimates be met, then the stock will likely hit its highest price at $6 (up 94.81% from current price levels). GRPN has a -3.2% ROE, lower than the 23.79% average for the industry. The average ROE for the sector is 14.51%.

Lowe’s Companies, Inc. (NYSE:LOW) shares appreciated 0.69% over the last trading period, taking overall 5-day performance up to -2.92%. GRPN’s price now at $90.95 is weaker than the 50-day average of $99.37. Getting the trading period increased to 200 days, the stock price was seen at $96.37 on average. The general public currently hold control of a total of 800.22 million shares, which is the number publicly available for trading. The total of shares that it has issued to investors is 813 million. The company’s management holds a total of 0.16%, while institutional investors hold about 76.5% of the remaining shares. GRPN share price finished last trade -2.62% below its 20 day simple moving average and its downbeat gap from 200 day simple moving average is -5.65%, while closing the session with -8.91% distance from 50 day simple moving average.

Lowe’s Companies, Inc. (LOW) shares were last observed trading -22.73% down since September 28, 2018 when the peak of $117.7 was hit. Last month’s price growth of -6.3% puts LOW performance for the year now at -2.14%. Consequently, the shares price is trending higher by 12.06%, a 52-week worst price since May. 01, 2018. However, it is losing value with -8.38% in the last 6 months. From a technical perspective, it appears more likely that the stock will experience a Bull Run market as a result of the strong support seen recently between $86.28 and $88.61. The immediate resistance area is now $92.15 Williams’s%R (14) for LOW moved to 45.18 while the stochastic%K points at 47.68.

LOW’s beta is 1.56; meaning investors could reap higher returns, although it also poses higher risks. The company allocated $4.61 per share from its yearly profit to its outstanding shares. Its last reported revenue is $17.42 billion, which was 4% versus $16.77 billion in the corresponding quarter last year. The EPS for Oct 18 quarter came in at $1.04 compared to $1.05 in the year-ago quarter and had represented -1% year-over-year earnings per share growth. LOW’s ROA is 10.4%, lower than the 20.36% industry average. Although a more robust percentage would be better, consideration is given to how well peers within the industry performed. Companies within the sector had an ROA of 6.45%.

Estimated quarterly earnings for Lowe’s Companies, Inc. (NYSE:LOW) are around $0.78 per share in three months through January with $1.31 also the estimate for April quarter of the fiscal year. It means the growth is estimated at 5.41% and 10.08%, respectively. Analysts estimate full-year growth to be 16.4%, the target being $5.11 a share. The upcoming year will see an increase in growth by percentage to 15.66%, more likely to see it hit the $5.91 per share. The firm’s current profit margin over the past 12 months is 5.5%. LOW ranks lower in comparison to an average of 13.3% for industry peers; while the average for the sector is 13.49%.