Canopy Growth Corporation (CGC) Stock Sinks As Market Gains: What You Should Know

Zacks
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

In the latest trading session, Canopy Growth Corporation (CGC) closed at $31.02, marking a -1.21% move from the previous day. This change lagged the S&P 500's 0.18% gain on the day. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 0.74%.

Coming into today, shares of the company had lost 26.03% in the past month. In that same time, the Medical sector lost 3.85%, while the S&P 500 lost 6.19%.

CGC will be looking to display strength as it nears its next earnings release, which is expected to be February 13, 2019. The company is expected to report EPS of -$0.09, up 18.18% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $73.90 million, up 332.42% from the year-ago period.

CGC's full-year Zacks Consensus Estimates are calling for earnings of -$0.88 per share and revenue of $218.90 million. These results would represent year-over-year changes of -175% and +259.13%, respectively.

Investors might also notice recent changes to analyst estimates for CGC. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 117.28% lower. CGC 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 99, putting it in the top 39% 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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