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Cronos Group (CRON) Gains As Market Dips: What You Should Know

Zacks Equity Research

Cronos Group (CRON) closed at $14.99 in the latest trading session, marking a +0.33% move from the prior day. This change outpaced the S&P 500's 0.65% loss on the day. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 0.46%.

Prior to today's trading, shares of the cannabis company had lost 4.9% over the past month. This has lagged the Finance sector's gain of 3.02% and the S&P 500's gain of 4.11% in that time.

CRON will be looking to display strength as it nears its next earnings release, which is expected to be August 8, 2019. Meanwhile, our latest consensus estimate is calling for revenue of $5.64 million, up 114.56% from the prior-year quarter.

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.

Investors should also note any recent changes to analyst estimates for CRON. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. CRON is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that CRON has a Forward P/E ratio of 560.25 right now. This represents a premium compared to its industry's average Forward P/E of 11.58.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 36% 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.

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

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