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GrowGeneration (GRWG) Gains But Lags Market: What You Should Know

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GrowGeneration (GRWG - Free Report) closed at $45.82 in the latest trading session, marking a +0.55% move from the prior day. The stock lagged the S&P 500's daily gain of 1.13%.

Coming into today, shares of the company had gained 9.44% in the past month. In that same time, the Basic Materials sector lost 4.51%, while the S&P 500 gained 2.39%.

Wall Street will be looking for positivity from GRWG as it approaches its next earnings report date. On that day, GRWG is projected to report earnings of $0.11 per share, which would represent year-over-year growth of 83.33%. Meanwhile, our latest consensus estimate is calling for revenue of $112.51 million, up 158.93% from the prior-year quarter.

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.

It is also important to note the recent changes to analyst estimates for GRWG. These revisions help to show the ever-changing nature of 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. 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 remained stagnant. GRWG is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, GRWG is currently trading at a Forward P/E ratio of 89.06. For comparison, its industry has an average Forward P/E of 43.4, which means GRWG is trading at a premium to the group.

The Agriculture - Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 10% 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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