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

Zacks Equity Research
·2 min read

Canopy Growth Corporation (CGC) closed at $44.14 in the latest trading session, marking a -1.78% move from the prior day. This change lagged the S&P 500's 1.09% gain on the day. At the same time, the Dow added 1.08%, and the tech-heavy Nasdaq gained 1.23%.

CGC will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2021. The company is expected to report EPS of -$0.21, up 22.22% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $116.91 million, up 24.67% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.86 per share and revenue of $435.59 million. These totals would mark changes of +28.33% and +45.24%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for CGC. Recent revisions tend to reflect the latest 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. 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 0.51% lower. CGC currently has a Zacks Rank of #3 (Hold).

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 224, which puts it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow CGC in the coming trading sessions, be sure to utilize Zacks.com.

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Zacks Investment Research