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

Zacks Equity Research
In the latest trading session, Ericsson (ERIC) closed at $9.88, marking a -0.9% move from the previous day.

Aphria Inc. (APHA) closed the most recent trading day at $9.93, moving +1.33% from the previous trading session. This change outpaced the S&P 500's 0.21% gain on the day. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq lost 0.05%.

Prior to today's trading, shares of the company had lost 2.78% over the past month. This has lagged the Medical sector's loss of 0.07% and the S&P 500's gain of 2.57% in that time.

Investors will be hoping for strength from APHA as it approaches its next earnings release, which is expected to be April 15, 2019. In that report, analysts expect APHA to post earnings of -$0.04 per share. This would mark a year-over-year decline of 166.67%. Meanwhile, our latest consensus estimate is calling for revenue of $41.11 million, up 403.74% from the prior-year quarter.

APHA's full-year Zacks Consensus Estimates are calling for earnings of $0.11 per share and revenue of $129.24 million. These results would represent year-over-year changes of -21.43% and +344.96%, respectively.

Investors should also note any recent changes to analyst estimates for APHA. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection remained stagnant. APHA is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, APHA is holding a Forward P/E ratio of 87.11. Its industry sports an average Forward P/E of 24.94, so we one might conclude that APHA is trading at a premium comparatively.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 40% 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.

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

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