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HEXO (HEXO) Gains As Market Dips: What You Should Know

Zacks Equity Research
·2 min read

HEXO (HEXO) closed at $0.76 in the latest trading session, marking a +1.86% move from the prior day. This change outpaced the S&P 500's 0.48% loss on the day. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 0.21%.

Prior to today's trading, shares of the cannabis producer had lost 4.42% over the past month. This has lagged the Medical sector's gain of 2.38% and the S&P 500's gain of 4.41% in that time.

HEXO will be looking to display strength as it nears its next earnings release. On that day, HEXO is projected to report earnings of -$0.02 per share, which would represent year-over-year growth of 80%. Our most recent consensus estimate is calling for quarterly revenue of $21.62 million, up 97.48% from the year-ago period.

HEXO's full-year Zacks Consensus Estimates are calling for earnings of -$0.05 per share and revenue of $101.09 million. These results would represent year-over-year changes of +79.17% and +67.78%, respectively.

Investors might also notice recent changes to analyst estimates for HEXO. These recent revisions tend to reflect the evolving nature of short-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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 17.78% higher. HEXO is currently sporting a Zacks Rank of #3 (Hold).

The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 121, putting it in the top 48% 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.

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

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