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

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GrowGeneration (GRWG - Free Report) closed at $21.27 in the latest trading session, marking a +0.95% move from the prior day. The stock lagged the S&P 500's daily gain of 0.98%.

Coming into today, shares of the company had lost 15.75% in the past month. In that same time, the Basic Materials sector gained 2.23%, while the S&P 500 gained 2.57%.

GRWG will be looking to display strength as it nears its next earnings release, which is expected to be November 11, 2021. The company is expected to report EPS of $0.09, up 50% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $115.28 million, up 109.56% from the year-ago period.

GRWG's full-year Zacks Consensus Estimates are calling for earnings of $0.41 per share and revenue of $450.24 million. These results would represent year-over-year changes of +272.73% and +132.84%, respectively.

Investors might also notice recent changes to analyst estimates for GRWG. Recent revisions tend to reflect the latest 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. 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.

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 10.51% lower within the past month. GRWG is currently a Zacks Rank #4 (Sell).

Digging into valuation, GRWG currently has a Forward P/E ratio of 51.18. This represents a premium compared to its industry's average Forward P/E of 23.74.

The Agriculture - Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 42, putting it in the top 17% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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