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Canopy Growth Corporation (CGC) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Canopy Growth Corporation (CGC) closed at $23.52 in the latest trading session, marking a -1.67% move from the prior day. This change lagged the S&P 500's 0.09% loss on the day. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.06%.

Heading into today, shares of the company had gained 13.42% over the past month, outpacing the Medical sector's loss of 1.26% and the S&P 500's gain of 1.26% in that time.

Investors will be hoping for strength from CGC as it approaches its next earnings release. The company is expected to report EPS of -$0.36, up 46.27% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $79.20 million, up 26.01% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$3.88 per share and revenue of $303.78 million. These totals would mark changes of -144.03% and +77.11%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for CGC. 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.

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 has moved 11.17% lower within the past month. CGC currently has a Zacks Rank of #3 (Hold).

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 115, putting it in the top 46% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow CGC in the coming trading sessions, be sure to utilize Zacks.com.


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