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Why Canopy Growth Corporation (CGC) Dipped More Than Broader Market Today

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In the latest trading session, Canopy Growth Corporation (CGC - Free Report) closed at $4.64, marking a -1.49% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.19%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq depreciated by 0.36%.

Prior to today's trading, shares of the company had lost 23.29% over the past month. This has lagged the Medical sector's gain of 1.44% and the S&P 500's gain of 2.06% in that time.

The investment community will be paying close attention to the earnings performance of Canopy Growth Corporation in its upcoming release. The company is expected to report EPS of -$0.35, up 80.56% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $47.12 million, indicating a 9.18% decline compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of -$2.24 per share and revenue of $204.1 million, which would represent changes of +44.69% and -16.52%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Canopy Growth Corporation. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Canopy Growth Corporation currently has a Zacks Rank of #3 (Hold).

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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