In the latest trading session, HEXO (HEXO - Free Report) closed at $4.01, marking a +0.75% move from the previous day. This move outpaced the S&P 500's daily loss of 2.6%. Elsewhere, the Dow lost 2.37%, while the tech-heavy Nasdaq lost 3%.
Prior to today's trading, shares of the cannabis producer had lost 2.93% over the past month. This has lagged the Medical sector's loss of 0.78% and the S&P 500's loss of 1.84% in that time.
Investors will be hoping for strength from HEXO as it approaches its next earnings release.
It is also important to note the 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 26.44% lower within the past month. HEXO is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, HEXO is currently trading at a Forward P/E ratio of 187.29. For comparison, its industry has an average Forward P/E of 28.36, which means HEXO is trading at a premium to the group.
We can also see that HEXO currently has a PEG ratio of 10.73. 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. HEXO's industry had an average PEG ratio of 2.46 as of yesterday's close.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 59, which puts 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.