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

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In the latest trading session, GrowGeneration (GRWG - Free Report) closed at $39.91, marking a -1.75% move from the previous day. This change lagged the S&P 500's daily gain of 1.02%.

Prior to today's trading, shares of the company had lost 9.09% over the past month. This has lagged the Basic Materials sector's gain of 1.67% and the S&P 500's gain of 3.01% in that time.

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%. Our most recent consensus estimate is calling for quarterly revenue of $112.51 million, up 158.93% from the year-ago period.

GRWG's full-year Zacks Consensus Estimates are calling for earnings of $0.51 per share and revenue of $464.12 million. These results would represent year-over-year changes of +363.64% and +140.02%, respectively.

Any recent changes to analyst estimates for GRWG should also be noted by investors. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.33% higher. GRWG is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note GRWG's current valuation metrics, including its Forward P/E ratio of 79.13. This valuation marks a premium compared to its industry's average Forward P/E of 43.86.

The Agriculture - Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 26, putting it in the top 11% 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.

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