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GrowGeneration (GRWG) Stock Sinks As Market Gains: What You Should Know

GrowGeneration (GRWG) closed at $22.18 in the latest trading session, marking a -1.42% move from the prior day.

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This story originally appeared on Zacks

GrowGeneration (GRWG) closed at $22.18 in the latest trading session, marking a -1.42% move from the prior day. This change lagged the S&P 500's 0.42% gain on the day.

- Zacks

Heading into today, shares of the company had lost 3.85% over the past month, lagging the Basic Materials sector's gain of 4.82% and the S&P 500's gain of 7.03% in that time.

Wall Street will be looking for positivity from GRWG as it approaches its next earnings report date. This is expected to be November 11, 2021. The company is expected to report EPS of $0.09, up 50% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $115.28 million, up 109.56% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.41 per share and revenue of $450.24 million. These totals would mark changes of +272.73% and +132.84%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for GRWG. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 10.51% lower within the past month. GRWG is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that GRWG has a Forward P/E ratio of 54.66 right now. This valuation marks a premium compared to its industry's average Forward P/E of 24.8.

The Agriculture - Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.



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