HEXO (HEXO) closed at $3.95 in the latest trading session, marking a -0.04% move from the prior day. This change lagged the S&P 500's daily gain of 1.27%. At the same time, the Dow added 1.25%, and the tech-heavy Nasdaq gained 1.48%.
Coming into today, shares of the cannabis producer had lost 7.28% in the past month. In that same time, the Medical sector lost 2.58%, while the S&P 500 lost 4.37%.
HEXO will be looking to display strength as it nears its next earnings release.
Investors should also note any 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.
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.
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. Within the past 30 days, our consensus EPS projection has moved 19.14% lower. HEXO is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note HEXO's current valuation metrics, including its Forward P/E ratio of 137.39. This represents a premium compared to its industry's average Forward P/E of 27.54.
Investors should also note that HEXO has a PEG ratio of 7.87 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Products stocks are, on average, holding a PEG ratio of 2.42 based on yesterday's closing prices.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 67, putting it in the top 27% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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