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Canopy Growth Corporation (CGC) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Canopy Growth Corporation (CGC) closed the most recent trading day at $24.56, moving +1.82% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.11%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 0.2%.

Heading into today, shares of the company had gained 20.84% over the past month, outpacing the Medical sector's gain of 0.94% and the S&P 500's gain of 3.25% in that time.

Investors will be hoping for strength from CGC as it approaches its next earnings release. In that report, analysts expect CGC to post earnings of -$0.36 per share. This would mark year-over-year growth of 46.27%. Meanwhile, our latest consensus estimate is calling for revenue of $79.20 million, up 26.01% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$3.88 per share and revenue of $303.78 million, which would represent changes of -144.03% and +77.11%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CGC. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 11.97% lower. CGC is holding a Zacks Rank of #3 (Hold) right now.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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