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Cronos Group (CRON) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
United Technologies (UTX) closed the most recent trading day at $132.53, moving +0.94% from the previous trading session.

Cronos Group (CRON) closed the most recent trading day at $15.85, moving +0.86% from the previous trading session. This change outpaced the S&P 500's 0.3% gain on the day. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.42%.

Prior to today's trading, shares of the cannabis company had gained 0.71% over the past month. This has lagged the Finance sector's gain of 2.14% and the S&P 500's gain of 2.2% in that time.

Investors will be hoping for strength from CRON as it approaches its next earnings release. Our most recent consensus estimate is calling for quarterly revenue of $5.60 million, up 113.04% from the year-ago period.

CRON's full-year Zacks Consensus Estimates are calling for earnings of $0.03 per share and revenue of $37.51 million. These results would represent year-over-year changes of +137.5% and +210.56%, respectively.

Any recent changes to analyst estimates for CRON should also be noted by investors. Recent revisions tend to reflect the latest 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 196.97% higher. CRON is currently a Zacks Rank #3 (Hold).

Digging into valuation, CRON currently has a Forward P/E ratio of 589.13. Its industry sports an average Forward P/E of 12.39, so we one might conclude that CRON is trading at a premium comparatively.

The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% 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.

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

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