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Canopy Growth Corporation (CGC) Stock Drops Despite Market Gains: Important Facts to Note

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The most recent trading session ended with Canopy Growth Corporation (CGC - Free Report) standing at $4.56, reflecting a -0.87% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.57% for the day. Elsewhere, the Dow gained 0.46%, while the tech-heavy Nasdaq added 0.75%.

Coming into today, shares of the company had lost 32.86% in the past month. In that same time, the Medical sector gained 6.86%, while the S&P 500 gained 3.4%.

The upcoming earnings release of Canopy Growth Corporation will be of great interest to investors. On that day, Canopy Growth Corporation is projected to report earnings of -$0.45 per share, which would represent year-over-year growth of 87.14%. Alongside, our most recent consensus estimate is anticipating revenue of $53.48 million, indicating a 28.27% downward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$3.27 per share and a revenue of $236.73 million, indicating changes of +93.89% and -25.07%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Canopy Growth Corporation. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.47% lower. As of now, Canopy Growth Corporation holds a Zacks Rank of #3 (Hold).

The Medical - Products industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 167, positioning it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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