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

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GrowGeneration (GRWG - Free Report) closed the most recent trading day at $49.03, moving -1.25% from the previous trading session. This change lagged the S&P 500's 0.75% gain on the day.

Heading into today, shares of the company had gained 17.6% over the past month, outpacing the Basic Materials sector's loss of 6.8% and the S&P 500's gain of 2.91% in that time.

Investors will be hoping for strength from GRWG as it approaches its next earnings release. In that report, analysts expect GRWG to post earnings of $0.11 per share. This would mark year-over-year growth of 83.33%. Our most recent consensus estimate is calling for quarterly revenue of $112.51 million, up 158.93% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.51 per share and revenue of $462.92 million. These totals would mark changes of +363.64% and +139.4%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for GRWG. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 remained stagnant. GRWG currently has a Zacks Rank of #2 (Buy).

In terms of valuation, GRWG is currently trading at a Forward P/E ratio of 97.04. For comparison, its industry has an average Forward P/E of 44.44, 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 22, putting it in the top 9% 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.

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