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GrowGeneration (GRWG) Outpaces Stock Market Gains: What You Should Know

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GrowGeneration (GRWG - Free Report) closed the most recent trading day at $43.07, moving +5.95% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.74%.

Prior to today's trading, shares of the company had lost 26.47% over the past month. This has lagged the Basic Materials sector's gain of 9.95% and the S&P 500's gain of 3.21% in that time.

Wall Street will be looking for positivity from GRWG as it approaches its next earnings report date. This is expected to be May 12, 2021. On that day, GRWG is projected to report earnings of $0.07 per share, which would represent year-over-year growth of 216.67%. Our most recent consensus estimate is calling for quarterly revenue of $87.28 million, up 164.65% from the year-ago period.

GRWG's full-year Zacks Consensus Estimates are calling for earnings of $0.47 per share and revenue of $435 million. These results would represent year-over-year changes of +327.27% and +124.96%, respectively.

Investors should also note any recent changes to analyst estimates for GRWG. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 5.38% higher. GRWG is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that GRWG has a Forward P/E ratio of 86.49 right now. For comparison, its industry has an average Forward P/E of 37.68, which means GRWG is trading at a premium to the group.

The Agriculture - Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 18, putting it in the top 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow GRWG in the coming trading sessions, be sure to utilize Zacks.com.


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