Cronos Group
CRON
shares soared 15.2% in the last trading session to close at $9.01. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 5.6% loss over the past four weeks.
Shares of the company surged as investors are optimistic on the fundamentals of the cannabis sector which is witnessing a wave of consolidation as of now.
Price and Consensus
This cannabis company is expected to post quarterly loss of $0.07 per share in its upcoming report, which represents a year-over-year change of +63.2%. Revenues are expected to be $18.68 million, up 89.1% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Cronos, the consensus EPS estimate for the quarter has been revised 17.3% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn’t usually translate into price appreciation. So, make sure to keep an eye on CRON 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
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