Marijuana stocks have been under pressure of late. Many stocks suffered last month following Canadian grower Hexo’s (HEXO) lowering of its fourth-quarter revenue forecast and withdrawal of its fiscal 2020 outlook…
On Oct 28, Hexo reported net losses about 57 million Canadian dollars for the quarter compared with 7.8 million in the prior quarter. Losses were three times larger than analysts’ estimates.
If this was not enough, Hexo said that it would roll back a planned product launch in the United States and said new derivative products would come online within the first half of next year, behind rivals. The entire Hexo event spread pessimism in the space and marijuana stocks were heavily hurt in the past month (read: Top and Flop ETFs of October).
Many Key Pot Stocks Likely to Beat in November
All is not looking gloomy at this stage. Many key companies are reporting earnings in mid-November. And these stocks have high chances of reporting earnings beat.
According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The $7.14-billion company Canopy Growth Corporation CGC – which offers dry cannabis and oil products primarily under the Tweed and Bedrocan brands –is looking to display strength as it nears its earnings release. Ithas a Zacks Rank #3 and an Earnings ESP of +28.57%. The stock comes from a top-ranked Zacks industry (top 40%).
The Zacks consensus estimate for Canopy Growth is a loss of 26 cents per share, which would represent year-over-year growth of 65.79%. Meanwhile, the Zacks Consensus Estimate for revenues is $85.21 million, suggesting growth of 377.38% from the year-ago period.
Pharmaceutical company Tilray Inc. TLRY, which has a market cap of $2.16 billion, is due to report on Nov 12. It has a Zacks Rank #3 and an Earnings ESP of +2.18%. It belongs to a top-ranked Zacks industry (top 16%). The Zacks consensus estimate is a loss of 29 cents per share (down 262.5% year over year) and estimate for revenues of $50.26 million (up 400.1% year over year).
The $3.63 billion-Aurora Cannabis Inc. ACB has a Zacks Rank #3 and an Earnings ESP of +25.76%. The Zacks consensus estimate is a loss of 3 cents per share, which would represent year-over-year growth of 65.79%. Though earnings projection suggests a 133.33% of decline, Zacks consensus estimate for revenues is $74.22 million. Revenues indicates 226.8% year-over-year expansion. The stock comes from a top-ranked Zacks industry (top 40%).
In October, Aphria Inc. APHA reported a break-even for Q1, beating…
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