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Canopy Growth Corporation (CGC) Gains But Lags Market: What You Should Know

Zacks Equity Research

Canopy Growth Corporation (CGC) closed at $22.80 in the latest trading session, marking a +0.35% move from the prior day. This move lagged the S&P 500's daily gain of 0.91%. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 1.02%.

Coming into today, shares of the company had lost 17.17% in the past month. In that same time, the Medical sector lost 5.07%, while the S&P 500 lost 2.74%.

CGC will be looking to display strength as it nears its next earnings release. On that day, CGC is projected to report earnings of -$0.27 per share, which would represent year-over-year growth of 64.47%. Our most recent consensus estimate is calling for quarterly revenue of $88.45 million, up 395.52% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$2.09 per share and revenue of $435.77 million, which would represent changes of -31.45% and +154.06%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for CGC. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 3.53% higher. 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 90, 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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