Canopy Growth (CGC, $17.23) reports wider-than-expected loss for fiscal Q4

Canopy Growth reported a wider-than-anticipated loss for its fiscal fourth quarter.

The cannabis company’s  net loss for the quarter came in at - C$3.72 a share, compared to the -44 cents a share loss expected by analysts polled by FactSet. The loss included C$743 million in impairment and restructuring charges, most of which are non-cash. The year-ago quarter’s loss was -C$1.10 a share.

However, sales increased to C$115.1 million (from the year-ago quarter’s C$106.5 million).

Due to the coronavirus pandemic, Canopy is withdrawing its prior guidance for positive adjusted EBITDA and net income.

Tickeron's A.I.-powered scorecard rates Canopy Growth a STRONG BUY.

Current price $17.18 crossed the support line at $17.64 and is trading between $17.64 support and $15.10 support lines. Throughout the month of 04/27/20 - 05/28/20, the price experienced a +24% Uptrend. During the week of 05/20/20 - 05/28/20, the stock enjoyed a +28% Uptrend growth.

Bullish Trend Analysis

The Momentum Indicator exceeded the 0 level on May 15, 2020. Traders may consider buying the ticker or exploring call options. In 67 of 87 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 77%.

The Moving Average Convergence Divergence (MACD) just turned positive. Considering data from situations where CGC's MACD histogram became positive, in 37 of 45 cases, the price rose further within the following month. The odds of a continued Uptrend are 82%.

The 10-day Moving Average for this ticker crossed above its 50-day Moving Average on April 28, 2020, which can be construed as a buy signal, indicating that the trend is shifting higher. In 10 of 13 similar cases where CGC's 10-day Moving Average crossed above its 50-day Moving Average, the price rose further within the following month. The odds of a continued Uptrend are 77%.

The Aroon Indicator entered an Uptrend today. In 172 of 228 similar cases where CGC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 75%.

Bearish Trend Analysis

The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

The Stochastic Indicator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 29 of 42 cases where CGC's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 69%.

Fundamental Analysis (Ratings)

Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 72%. During the last month, the daily ratio of advancing to declining volumes was 1.99 to 1.

The Tickeron Profit vs. Risk Rating rating for this company is 15 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock better than average.

The Tickeron Price Growth Rating for this company is 41 (best 1 - 100 worst), indicating steady price growth. CGC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Valuation Rating of 96 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.87) is normal, around the industry mean (1.09). P/E Ratio (0.00) is within average values for comparable stocks, (30.33). Projected Growth (PEG Ratio) (0.00) is also within normal values, averaging (115.92). Dividend Yield (0.00) settles around the average of (1.05) among similar stocks. P/S Ratio (25.30) is also within normal values, averaging (11.24).

The Tickeron SMR rating for this company is 99 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron PE Growth Rating for this company is 100 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.