Back to top

Image: Bigstock

Canopy Growth Corporation (CGC) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

Canopy Growth Corporation (CGC - Free Report) closed at $0.39 in the latest trading session, marking a -0.85% move from the prior day. This change lagged the S&P 500's 0.03% gain on the day. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq lost 1.37%.

Prior to today's trading, shares of the company had lost 35.15% over the past month. This has lagged the Medical sector's gain of 0.82% and the S&P 500's gain of 3.43% in that time.

Canopy Growth Corporation will be looking to display strength as it nears its next earnings release. In that report, analysts expect Canopy Growth Corporation to post earnings of -$0.10 per share. This would mark year-over-year growth of 85.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $70.82 million, down 17.93% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.40 per share and revenue of $291.58 million, which would represent changes of +92.52% and -7.71%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Canopy Growth Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 11.02% lower. Canopy Growth Corporation currently has a Zacks Rank of #3 (Hold).

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 116, which puts it in the top 47% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Canopy Growth Corporation (CGC) - free report >>

Published in