In the latest trading session, GrowGeneration (GRWG) closed at $50.62, marking a -0.22% move from the previous day. This change lagged the S&P 500’s 1.14% gain on the day. Elsewhere, the Dow gained 1.35%, while the tech-heavy Nasdaq added 0.99%.
Heading into today, shares of the company had gained 9.18% over the past month, outpacing the Basic Materials sector’s gain of 3.88% and the S&P 500’s gain of 1.2% 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 $0.06 per share. This would mark year-over-year growth of 700%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $61.25 million, up 141.33% from the year-ago period.
Investors might also notice recent changes to analyst estimates for GRWG. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 1.57% higher within the past month. GRWG is currently a Zacks Rank #3 (Hold).
Investors should also note GRWG’s current valuation metrics, including its Forward P/E ratio of 135.8. Its industry sports an average Forward P/E of 22.13, so we one might conclude that GRWG is trading at a premium comparatively.
The Agriculture – Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 231, which puts it in the bottom 10% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow GRWG in the coming trading sessions, be sure to utilize Zacks.com.
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