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Cronos Group (CRON) Gains But Lags Market: What You Should Know

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Cronos Group (CRON - Free Report) closed the most recent trading day at $18.61, moving +0.98% from the previous trading session. This change lagged the S&P 500's 1.16% gain on the day. Meanwhile, the Dow gained 1.27%, and the Nasdaq, a tech-heavy index, added 1.29%.

Prior to today's trading, shares of the cannabis company had lost 14.83% over the past month. This has lagged the Finance sector's loss of 1.35% and the S&P 500's gain of 1.92% in that time.

Wall Street will be looking for positivity from CRON as it approaches its next earnings report date. On that day, CRON is projected to report earnings of -$0.02 per share, which would represent a year-over-year decline of 100%. Meanwhile, our latest consensus estimate is calling for revenue of $4.90 million, up 110.3% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.02 per share and revenue of $53.56 million, which would represent changes of +125% and +343.41%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for CRON. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Over the past month, the Zacks Consensus EPS estimate has moved 84.13% lower. CRON is currently a Zacks Rank #5 (Strong Sell).

Looking at its valuation, CRON is holding a Forward P/E ratio of 1105.8. This valuation marks a premium compared to its industry's average Forward P/E of 11.95.

The Financial - Investment Management industry is part of the Finance sector. This group has a Zacks Industry Rank of 81, putting it in the top 32% 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.

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


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