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Canopy Growth Corporation (CGC) Soars 6.1%: Is Further Upside Left in the Stock?

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Zacks Equity Research
·1 min read
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Canopy Growth Corporation (CGC) shares rallied 6.1% in the last trading session to close at $34.73. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 18.8% loss over the past four weeks.

The lawmakers in Virginia approved a legislation whereby recreational use of marijuana will be legalized by 2024 in that state which in turn boosted prices of most marijuana stocks.

Price and Consensus

Price Consensus Chart for Canopy Growth Corporation
Price Consensus Chart for Canopy Growth Corporation

This company is expected to post quarterly loss of $0.18 per share in its upcoming report, which represents a year-over-year change of +84.5%. Revenues are expected to be $127.54 million, up 58.5% 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 Canopy Growth Corporation, the consensus EPS estimate for the quarter has been revised 1.6% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CGC 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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