Zacks Equity Research take on HEXO, HOLD November 11, 2020 Zacks take: "Consensus EPS estimate has moved 17.78% higher. HEXO is currently a Zacks Rank #3 (Hold)." HEXO closed the most recent trading day at $0.78, moving -0.18% from the previous trading session. This change lagged the S&P 500's 0.77% gain on the day. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq gained 2.01%.
Coming into today, shares of the cannabis producer had gained 1.11% in the past month. In that same time, the Medical sector gained 0.69%, while the S&P 500 gained 2.11%.
Investors will be hoping for strength from HEXO as it approaches its next earnings release. In that report, analysts expect HEXO to post earnings of -$0.02 per share. This would mark year-over-year growth of 80%. Our most recent consensus estimate is calling for quarterly revenue of $21.62 million, up 97.48% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.05 per share and revenue of $101.09 million. These totals would mark changes of +79.17% and +67.78%, respectively, from last year.Any recent changes to analyst estimates for HEXO should also be noted by investors. These revisions help to show the ever-changing nature 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 17.78% higher. HEXO is currently a Zacks Rank #3 (Hold).
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