U.S. Markets closed

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

Zacks Equity Research

In the latest trading session, Canopy Growth Corporation (CGC) closed at $32.21, marking a -0.56% move from the previous day. This change lagged the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq added 0.38%.

Coming into today, shares of the company had lost 17.2% in the past month. In that same time, the Medical sector lost 3.76%, while the S&P 500 lost 3.57%.

Wall Street will be looking for positivity from CGC as it approaches its next earnings report date. This is expected to be August 14, 2019. The company is expected to report EPS of -$0.29, up 6.45% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $85.97 million, up 327.92% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.90 per share and revenue of $511.48 million, which would represent changes of +43.4% and +198.2%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CGC. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 9.89% lower. CGC is holding a Zacks Rank of #3 (Hold) right now.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 61, which puts it in the top 24% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Canopy Growth Corporation (CGC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.