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Aphria Inc. (APHA) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Aphria Inc. (APHA) closed at $4.70, marking a +1.82% move from the previous day. This change outpaced the S&P 500's 1.09% gain on the day. At the same time, the Dow added 1.21%, and the tech-heavy Nasdaq gained 1.34%.

Heading into today, shares of the company had lost 30.53% over the past month, lagging the Medical sector's loss of 3.27% and the S&P 500's loss of 1.17% in that time.

APHA will be looking to display strength as it nears its next earnings release, which is expected to be October 15, 2019. On that day, APHA is projected to report earnings of -$0.02 per share, which would represent a year-over-year decline of 128.57%. Meanwhile, our latest consensus estimate is calling for revenue of $103.90 million, up 923.6% from the prior-year quarter.

APHA's full-year Zacks Consensus Estimates are calling for earnings of $0.08 per share and revenue of $503.75 million. These results would represent year-over-year changes of +172.73% and +182.87%, respectively.

Investors might also notice recent changes to analyst estimates for APHA. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. APHA is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, APHA is currently trading at a Forward P/E ratio of 57.75. Its industry sports an average Forward P/E of 25.85, so we one might conclude that APHA is trading at a premium comparatively.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 91, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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