Cronos Group (CRON) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Cronos Group (CRON) closed at $21.48, marking a -0.97% move from the previous day. This move lagged the S&P 500's daily loss of 0.01%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.12%.

Heading into today, shares of the cannabis company had gained 1.88% over the past month, outpacing the Finance sector's gain of 1.53% and lagging the S&P 500's gain of 2.24% in that time.

CRON will be looking to display strength as it nears its next earnings release, which is expected to be March 26, 2019. In that report, analysts expect CRON to post earnings of -$0.02 per share. This would mark a year-over-year decline of 300%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.70 million, up 427.56% from the year-ago period.

It is also important to note the recent changes to analyst estimates for CRON. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 52.38% lower. CRON is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, CRON is holding a Forward P/E ratio of 433.8. Its industry sports an average Forward P/E of 12.1, so we one might conclude that CRON is trading at a premium comparatively.

The Financial - Investment Management industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 44% 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.

To follow CRON in the coming trading sessions, be sure to utilize Zacks.com.

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