|Bid||84.29 x 800|
|Ask||84.35 x 1300|
|Day's Range||82.55 - 85.40|
|52 Week Range||66.62 - 149.35|
|Beta (3Y Monthly)||0.66|
|PE Ratio (TTM)||99.26|
|Earnings Date||Feb 6, 2019 - Feb 11, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||104.50|
Ellenbogen, manager of the T. Rowe Price New Horizons fund and a noted investor in private tech start-ups, will be succeeded by Josh Spencer
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Mid-caps stocks, like GrubHub Inc. (NYSE:GRUB) withRead More...
Pizza Hut proprietary delivery will soon be no more. The pizza chain has begun piloting delivery with Grubhub, becoming the first company among its industry rivals to give the keys of its off-premise business to an external third-party. Both Papa John’s and Domino’s still run delivery and pickup operations in-house. Last February, Yum Brands – Pizza […]
Most of DoorDash’s rivals mainly focus on wooing the people ordering the food. DoorDash, on the other hand, has directed its efforts toward keeping restaurants happy.
Groupon (GRPN) rides on partnership with Grubhub along with ongoing brand awareness programs. Further, launching new products on a regular basis is a positive.
The bad news for Grubhub may be largely behind the company, and better times could be near, according to Bank of America Merrill Lynch.
Shares of GrubHub (NYSE:GRUB) plunged on Thursday, Feb. 7, after the online food ordering and delivery giant reported miserable fourth quarter numbers alongside a weak guide. As of this writing, GrubHub stock is down nearly 15%, and was down nearly 20% at one point.The sell-off in GrubHub stock makes sense. Fourth quarter numbers were bad. Revenue growth slowed. Diner growth slowed. Gross food sales growth slowed. Margins came crashing down.Profit growth turned sharply negative. And, the guide wasn't much better. The first quarter and full-year revenue guides weren't bad, but still called for slowing growth going forward. Meanwhile, the profit guides were awful, and implied meaningful margin compression and muted profit growth over the next several quarters.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Reasons You Want Boeing Stock in Your Portfolio All in all, it was a really bad report. This wasn't a cheap stock. Heading into the print, GrubHub stock was trading at 40 forward earnings. Thus, bad numbers converged on a big valuation to create a huge sell-off in GrubHub stock.But this sell-off is overdone.Zooming out, the big picture here remains OK. GrubHub is still a leader in the secular growth online food ordering and delivery industry. Competition is heating up and causing the company to invest big. This will bring margins down for sure, but, the revenue growth trajectory remains healthy.Moreover, current margin compression is exaggerated by temporarily large growth-related investments that are expected to largely phase out by later 2019.Thus, in the big picture, GrubHub remains a big growth company with some lingering yet overstated margin issues. That combination implies that GrubHub stock is undervalued and oversold at $70, meaning this post-earnings plunge is worth buying. The Numbers Were BadThere's no hiding all the bad things that were present in GrubHub's fourth-quarter-earnings report, so I'll just list all of them off here: * Q4 revenues missed expectations, and revenue growth slowed to 40%, from a roughly 50%-plus run rate the company had established over the past several quarters. Revenue growth is expected to slow further next quarter (~38%) and next year (~36%). * Active diner growth slowed to 22%, its weakest mark in several quarters. Same with Daily Active Grubs and Gross Food Sales growth. * Adjusted EBITDA margins compressed meaningfully in the quarter, dropping from 28% in the year ago quarter to 15% this quarter. This margin compression is expected to continue. First quarter 2019 EBITDA margins are expected around 14% (versus 28% in the year ago quarter), and full year 2019 EBITDA margins are expected around 18% (versus 23% this year). * Adjusted EBITDA growth actually dropped year-over-year in the fourth quarter by 26%, versus 40%-plus EBITDA growth that had been reported in each of the prior four quarters. Adjusted EBITDA is expected to drop even more next quarter, too, and rise by only 7% in fiscal 2019.Overall, the quarter contained multiple negatives. Growth across the board is slowing, and margins are dropping in a big way. Under the hood, management is starting to feel the pressure from increased competition. To fight off this competition, the company is doubling down on marketing spend and operational expansion in order to "out grow" the competition.On the top-line, this is working. Revenue growth rates remain healthy. But, it's coming at the expense of margins. Investors are spooked by these massive investments and the sudden lack of profit growth in this supposed hyper-growth company. As such, they are selling first and asking questions later.This investor capitulation to bad numbers is an opportunity for contrarian investors. The Big Picture Is Still GoodDuring rough patches, it's often best to zoom out and look at the big picture. When you do that with GrubHub stock, the ugly fourth quarter earnings report is put in context of a much broader and positive long term growth narrative.GrubHub is leveraging technology and internet connectivity to disrupt a several hundred billion dollar industry and make it more efficient and convenient for consumers. In so doing, they are pioneering what promises to be a very large online food ordering and delivery market.My research indicates that the global online food ordering and delivery industry will measure out to $100 billion-plus in sales by 2025, and that GrubHub should be able to take home about $20 billion in gross food sales by then. Using a 25% transaction rate, that equates to $5 billion in revenues by 2025.Nothing about the fourth quarter report changes this outlook. Revenue growth is still expected at over 35% this year, after running at 35%-plus rates for the past five years.If revenues come in at $1.35 billion this year, then all you need is 25% revenue growth per year to get to over $5 billion in revenues by 2025. That seems doable, considering the growth rate is and has been over 35% for several consecutive years.The only thing that has changed in the big picture as a result of ugly Q4 numbers is the long term margin outlook. I have long thought that GrubHub would be able to phase out growth related expenses and get EBITDA margins back to 30% in the long run. I no longer have faith that this is possible.Those growth-related expenses are swelling to bigger levels than previously forecast. Plus, the phasing out will also take longer than expected. As such, long term EBITDA margins will likely stabilize around 25%, not 30%.Making that cut, I'm revising my 2025 EPS target on GRUB down from $10, to $7.50. Still, at $7.50, that implies GrubHub stock is undervalued here. Based on a restaurant average 20 forward multiple, a reasonable fiscal 2024 price target for GrubHub stock is $150. Discounted back by 10% per year, that equates to a fiscal 2019 price target of about $90. Bottom Line on GRUB StockGrubHub's fourth quarter numbers were bad, and the stock deserved to fall in response. But, a double-digit haircut on a stock that was already deep into bear market territory is overdone.At current levels, GrubHub stock is both oversold and undervalued. This is an opportunity buy.As of this writing, Luke Lango was long GRUB. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Monster Growth Stocks to Buy for 2019 and Beyond * 7 Cloud Stocks To Buy Now * 5 Undervalued Stocks to Invest In Compare Brokers The post The Post-Earnings Plunge in GrubHub Stock Is Worth Buying appeared first on InvestorPlace.
GrubHub, Inc. (NYSE: GRUB) went on a wild ride Thursday after the company reported a seemingly disappointing quarter, including an earnings miss and below-consensus guidance. Investors may be reconsidering the impact of a couple of quarters given that GrubHub reported impressive 40-percent revenue growth compared to a year ago. Several Wall Street analysts have weighed in on GrubHub since the quarterly print.
Groupon (NASDAQ:GRPN) is moving into its 11th year, and while it controls its niche, it continues to have troubles making it work consistently.Its auspicious beginnings as a publicly traded company in November 2011, saw the share price hit it all-time highs during that IPO feeding frenzy. It may not have been that long ago, but at the time e-commerce was a wild west and the Groupon model had some serious promise.Back in late 2011, GRPN stock was selling around $26. Today, it sits around $3.60. And in between, it has been a long, slow slide down to that level.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe premise for GRPN stock was solid, and still remains the strongest part of its business, at least in the sense that it's the highest-margin part of the business. It's essentially a way for local businesses to access new customers with discounts via emails from Goupon (and a website). You find the deal you want, print it out and take the coupon to the business and get the service at a discount.This kind of location-based marketing was a very cool idea back then because it managed to overcome some of the technical obstacles that existed at the time. It was a great marriage of high tech and low tech. GRPN Stock Can't Move ForwardWhen it had proven its viability and swallowed most of its competition, it got some money to grow -- and grow it has. Groupon now has global operations. According to the company, it added around 260,000 new international customers in Q3 2018 and saw $102 million in annual gross profit. * 10 Monster Growth Stocks to Buy for 2019 and Beyond It is also aggressively pursuing and expanding partnerships with various consumer-facing firms like GrubHub (NYSE:GRUB), Tickets.com and GolfNow.But the problem that is holding the stock back is, it can't seem to transition from the reliable coupon model to a more frictionless mobile or digital model. Well … it can and it has begun to transition, but the margins just aren't as attractive as the old model. Essentially it used a model to scale successfully to a global marketplace but now has to rebuild its delivery platform to attract new customers. This is the current challenge.And while it has made positive steps in the right direction, using card-linked efforts to make mobile a more important part of its business, it is having trouble making the numbers work.Its traditional service is a relatively easy platform to service and fulfill. With digital, it means more tech heavy lifting, since printing coupons is no longer an option. Now, GRPN is adopting a credit/debit-card linked option where you add a card and then the discount for the service is linked to the card. Use the card to pay and the discount is applied.The problem is, cards take a cut of the revenue. And building out that architecture costs money. Making this transition is going to be challenging.My Portfolio Grader rates GRPN a D right now. It's unloved, but that doesn't mean it will join the tech growth rally any time soon. And as far as earnings go on Feb. 12, don't expect disaster but don't count on brilliance, either.Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Are These 7 Dividend Aristocrats ETFs Fit for a King? * 7 of the Best Emerging Markets Stocks to Buy * 5 Gold Stocks That Should Glitter in 2019 Compare Brokers The post What to Expect from Groupon Earnings appeared first on InvestorPlace.
GrubHub Inc NYSE:GRUBView full report here! Summary * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is moderate Bearish sentimentShort interest | NegativeShort interest is moderately high for GRUB with between 10 and 15% of shares outstanding currently on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding GRUB totaled $5.22 billion. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Technology sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
The company now not only designs the system-on-chips (SoCs) that power much of its hardware lineup, but also the CPU cores, GPU cores, image processors and AI co-processors that go inside of them. Now it looks as if Apple also wants to design the cellular modems that go into its hardware. hometown of San Diego -- the company has posted new San Diego job listings for wireless engineers.