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Canopy Growth Corporation (CGC) shares ended the last trading session 5.5% higher at $26.09. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 9.8% loss over the past four weeks.
The stock rallied for the second consecutive day just before its fourth-quarter fiscal 2021 earnings release with the latest analysts’ forecasts showing significant top-and-bottom-line improvement compared to the year-ago period. The Zacks Consensus Estimate of revenues is pegged at $123 million, reflecting a 52.7% rise. Loss per share is pegged at 18 cents, significantly narrower than the year-ago loss of $1.16.
Price and Consensus
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 $122.88 million, up 52.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Canopy Growth Corporation, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. 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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