GrowGeneration (GRWG) closed at $45.83 in the latest trading session, marking a +1.73% move from the prior day. This change outpaced the S&P 500’s 0.09% loss on the day.
Heading into today, shares of the company had gained 1.6% over the past month, lagging the Basic Materials sector’s gain of 9.87% and the S&P 500’s gain of 5.45% in that time.
Wall Street will be looking for positivity from GRWG as it approaches its next earnings report date. In that report, analysts expect GRWG to post earnings of $0.07 per share. This would mark year-over-year growth of 216.67%. Meanwhile, our latest consensus estimate is calling for revenue of $87.28 million, up 164.65% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.47 per share and revenue of $435 million. These totals would mark changes of +327.27% and +124.96%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for GRWG. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 5.38% higher. GRWG is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, GRWG is holding a Forward P/E ratio of 95.85. This valuation marks a premium compared to its industry’s average Forward P/E of 37.1.
The Agriculture – Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 33, putting it in the top 13% 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.
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