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GW Pharmaceuticals PLC (GWPH) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

GW Pharmaceuticals PLC (GWPH) closed at $129.96 in the latest trading session, marking a +0.38% move from the prior day. This change outpaced the S&P 500's 0.17% gain on the day. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, added 0.11%.

Prior to today's trading, shares of the company had gained 10.55% over the past month. This has outpaced the Medical sector's gain of 1.18% and the S&P 500's gain of 2.78% in that time.

Wall Street will be looking for positivity from GWPH as it approaches its next earnings report date. The company is expected to report EPS of -$0.51, up 78.3% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $103.56 million, up 1457.32% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for GWPH. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 14.13% lower within the past month. GWPH currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, GWPH is holding a Forward P/E ratio of 125.33. For comparison, its industry has an average Forward P/E of 27.52, which means GWPH is trading at a premium to the group.

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 72, putting it in the top 29% 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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