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Zacks Equity Research
In the latest trading session, Canopy Growth Corporation (CGC) closed at $51.05, marking a -0.31% move from the previous day. The stock lagged the S&P 500’s daily gain of 0.04%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 0.23%.
Prior to today’s trading, shares of the company had gained 108% over the past month. This has outpaced the Medical sector’s gain of 2.85% and the S&P 500’s gain of 2.16% in that time.
CGC will be looking to display strength as it nears its next earnings release, which is expected to be November 13, 2018. In that report, analysts expect CGC to post earnings of -$0.09 per share. This would mark a year-over-year decline of 800%. Meanwhile, our latest consensus estimate is calling for revenue of $109.90 million, up 683.88% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.37 per share and revenue of $356.29 million, which would represent changes of -15.63% and +484.53%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for CGC. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 102.78% lower. CGC currently has a Zacks Rank of #4 (Sell).
The Medical – Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 166, which puts it in the bottom 35% 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.
Editor’s Note: This report pertains to the US-listed Canopy Growth, (CGC) not the Canadian listing (TSX:WEED), but refers to the same company.