In the latest trading session, HEXO (HEXO - Free Report) closed at $0.69, marking a -1.39% move from the previous day. This change lagged the S&P 500's daily gain of 1.54%. At the same time, the Dow added 1.59%, and the tech-heavy Nasdaq gained 0.98%.
Coming into today, shares of the cannabis producer had lost 4.01% in the past month. In that same time, the Medical sector gained 0.98%, while the S&P 500 gained 8%.
HEXO will be looking to display strength as it nears its next earnings release. On that day, HEXO is projected to report earnings of -$0.03 per share, which would represent year-over-year growth of 72.73%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.90 million, up 60.31% from the year-ago period.
It is also important to note the recent changes to analyst estimates for HEXO. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 7.14% lower within the past month. HEXO currently has a Zacks Rank of #3 (Hold).
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 186, which puts it in the bottom 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.
To follow HEXO in the coming trading sessions, be sure to utilize Zacks.com.