HEXO (HEXO - Free Report) closed the most recent trading day at $4.37, moving -0.91% from the previous trading session. This change lagged the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq added 0.38%.
Coming into today, shares of the cannabis producer had lost 15.03% in the past month. In that same time, the Medical sector lost 3.76%, while the S&P 500 lost 3.57%.
HEXO will be looking to display strength as it nears its next earnings release.
Investors should also note any recent changes to analyst estimates for HEXO. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. HEXO is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note HEXO's current valuation metrics, including its Forward P/E ratio of 152.65. This valuation marks a premium compared to its industry's average Forward P/E of 27.75.
We can also see that HEXO currently has a PEG ratio of 8.75. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Products was holding an average PEG ratio of 2.54 at yesterday's closing price.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 61, putting it in the top 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.