GrowGeneration (NASDAQ:GRWG) closed at $58.14 in the latest trading session, marking a +1.27% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.39%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.57%.
Coming into today, shares of the company had gained 23.04% in the past month. In that same time, the Basic Materials sector lost 0.74%, while the S&P 500 gained 4.69%.
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%. Our most recent consensus estimate is calling for quarterly revenue of $61.25 million, up 141.33% from the year-ago period.
It is also important to note the recent changes to analyst estimates for GRWG. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 4.95% higher within the past month. GRWG is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, GRWG is holding a Forward P/E ratio of 150.29. Its industry sports an average Forward P/E of 84.14, 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 119, which puts it in the top 47% 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.
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