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Aurora Cannabis Inc. (ACB) Stock Jumps 7.7%: Will It Continue to Soar?

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Aurora Cannabis Inc. (ACB) shares soared 7.7% in the last trading session to close at $9.66. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.1% gain over the past four weeks.

Aurora Cannabis Inc. witnessed solid price appreciation driven by optimism stemming from its announcement of the introduction of a dedicated Science & Innovation business group. The objective behind the launch is that of commercializing patented and patent pending technology that can be crucial in the development of cannabinoid biosynthesis and plant genetics. Market is also optimistic about the company’s commencement of trading on The Nasdaq Global Select Market (post completion of transfer of its stock exchange listing from the NYSE) on May 25.

Price and Consensus

Price Consensus Chart for ACB
Price Consensus Chart for ACB

This company is expected to post quarterly loss of $0.21 per share in its upcoming report, which represents a year-over-year change of -61.5%. Revenues are expected to be $53.1 million, up 2.1% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Aurora Cannabis Inc., the consensus EPS estimate for the quarter has been revised 18.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on ACB going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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