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

Zacks Equity Research
Eastman Chemical (EMN) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Aphria Inc. (APHA) closed the most recent trading day at $10.06, moving -0.59% from the previous trading session. This move lagged the S&P 500's daily gain of 1.09%. Meanwhile, the Dow gained 0.84%, and the Nasdaq, a tech-heavy index, added 1.42%.

Heading into today, shares of the company had lost 0.3% over the past month, lagging the Medical sector's gain of 1.58% and the S&P 500's gain of 1.18% in that time.

Investors will be hoping for strength from APHA as it approaches its next earnings release. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $41.11 million, up 403.74% from the year-ago period.

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.

It is also important to note the recent changes to analyst estimates for APHA. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 20.54% higher. APHA is currently a Zacks Rank #3 (Hold).

Investors should also note APHA's current valuation metrics, including its Forward P/E ratio of 89.96. This represents a premium compared to its industry's average Forward P/E of 25.1.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 30% 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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