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GrowGeneration (GRWG) Gains But Lags Market: What You Should Know

This story originally appeared on Zacks

In the latest trading session, GrowGeneration (GRWG) closed at $8.37, marking a +0.48% move from the previous day. This move lagged the S&P 500’s daily gain of 2.24%. Meanwhile, the Dow gained 2.51%, and the Nasdaq, a tech-heavy index, lost 0.17%.

– Zacks

Heading into today, shares of the company had gained 18.66% over the past month, outpacing the Basic Materials sector’s gain of 3.14% and the S&P 500’s loss of 2.58% in that time.

Wall Street will be looking for positivity from GrowGeneration as it approaches its next earnings report date. This is expected to be March 1, 2022. On that day, GrowGeneration is projected to report earnings of -$0.08 per share, which would represent a year-over-year decline of 366.67%. Meanwhile, our latest consensus estimate is calling for revenue of $89.21 million, up 44.08% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for GrowGeneration. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. GrowGeneration is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note GrowGeneration’s current valuation metrics, including its Forward P/E ratio of 56.16. This represents a premium compared to its industry’s average Forward P/E of 20.79.

The Agriculture – Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 18% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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