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Cronos Group (CRON) Gains But Lags Market: What You Should Know

Zacks Equity Research

Cronos Group (CRON) closed at $15.43 in the latest trading session, marking a +0.39% move from the prior day. This change lagged the S&P 500's 0.47% gain on the day. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq added 0.85%.

Heading into today, shares of the cannabis company had lost 2.66% over the past month, lagging the Finance sector's gain of 1.97% and the S&P 500's gain of 2.08% in that time.

Wall Street will be looking for positivity from CRON as it approaches its next earnings report date. This is expected to be August 8, 2019. Our most recent consensus estimate is calling for quarterly revenue of $5.64 million, up 114.56% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.03 per share and revenue of $36.74 million, which would represent changes of +137.5% and +204.21%, respectively, from the prior year.

Any recent changes to analyst estimates for CRON should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. CRON is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that CRON has a Forward P/E ratio of 576.38 right now. This valuation marks a premium compared to its industry's average Forward P/E of 11.81.

The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 91, putting it in the top 36% 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.

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


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