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Here's Why Canopy Growth Corporation (CGC) Fell More Than Broader Market

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In the latest market close, Canopy Growth Corporation (CGC - Free Report) reached $4.14, with a -1.19% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.76% for the day. Elsewhere, the Dow saw a downswing of 0.75%, while the tech-heavy Nasdaq depreciated by 1.01%.

Heading into today, shares of the company had lost 14.66% over the past month, lagging the Medical sector's loss of 3.35% and the S&P 500's gain of 4.31% in that time.

The upcoming earnings release of Canopy Growth Corporation will be of great interest to investors. The company is expected to report EPS of -$0.38, up 78.89% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $46.84 million, showing a 9.71% drop compared to the year-ago quarter.

CGC's full-year Zacks Consensus Estimates are calling for earnings of -$2.24 per share and revenue of $203.01 million. These results would represent year-over-year changes of +44.69% and -16.97%, respectively.

Any recent changes to analyst estimates for Canopy Growth Corporation should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Canopy Growth Corporation is currently a Zacks Rank #4 (Sell).

The Medical - Products industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 62, positioning it in the top 25% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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