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

Zacks Equity Research

Canopy Growth Corporation (CGC) closed at $21.64 in the latest trading session, marking a -1.28% move from the prior day. This move lagged the S&P 500's daily gain of 0.56%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 1.01%.

Coming into today, shares of the company had lost 11.4% in the past month. In that same time, the Medical sector gained 0.13%, while the S&P 500 gained 1.38%.

CGC will be looking to display strength as it nears its next earnings release. On that day, CGC is projected to report earnings of -$0.26 per share, which would represent year-over-year growth of 65.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $85.21 million, up 377.38% from the year-ago period.

CGC's full-year Zacks Consensus Estimates are calling for earnings of -$3.44 per share and revenue of $410.89 million. These results would represent year-over-year changes of -116.35% and +139.55%, respectively.

Any recent changes to analyst estimates for CGC should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 5.25% 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 101, putting it in the top 40% 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.

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


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