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HEXO (HEXO) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

HEXO (HEXO) closed at $4.91 in the latest trading session, marking a -1.8% move from the prior day. This change lagged the S&P 500's daily loss of 0.62%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 0.74%.

Prior to today's trading, shares of the cannabis producer had lost 14.24% over the past month. This has lagged the Medical sector's loss of 1.47% and the S&P 500's gain of 2.8% in that time.

Investors will be hoping for strength from HEXO as it approaches its next earnings release.

It is also important to note the recent changes to analyst estimates for HEXO. 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.

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.

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 0.74% higher. HEXO is currently a Zacks Rank #3 (Hold).

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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