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Aurora Cannabis (ACB) Soars 6.2%: Is Further Upside Left in the Stock?

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Aurora Cannabis Inc. (ACB - Free Report) shares rallied 6.2% in the last trading session to close at $6.17. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 20% gain over the past four weeks.

The sharp upsurge in Aurora Cannabis shares can be attributed to a sector-wide wave of optimism surrounding potential U.S. regulatory easing and renewed political support for cannabis reform, which reignited investor sentiment across the industry. Hopes of marijuana rescheduling, expected to unlock better banking access and tax treatment for cannabis firms, combined with recent high-profile endorsements of CBD by prominent policymakers, fueled broad buying momentum. This convergence of policy optimism and positive media coverage drew fresh institutional and retail interest toward established names like Aurora Cannabis.

This company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of -25%. Revenues are expected to be $63.79 million, up 7.3% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Aurora Cannabis, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ACB going forward to see if this recent jump can turn into more strength down the road.

 

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Aurora Cannabis belongs to the Zacks Medical - Products industry. Another stock from the same industry, Bio-Rad Laboratories (BIO - Free Report) , closed the last trading session 4.1% lower at $296.52. Over the past month, BIO has returned 6.5%.

For Bio-Rad, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.25. This represents a change of +11.9% from what the company reported a year ago. Bio-Rad currently has a Zacks Rank of #3 (Hold).


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