Cannabis company Canopy Growth got a rating downgrade from Jefferies on valuation.
Analysts at Jefferies lowered their rating on the company’s shares to underperform from hold. Their price target is $23.03.
Analyst Owen Bennett argued that while bulls will suggest that Canopy's multiple is deserved given possible near-term U.S. entry, it is still “too expensive” even though its U.S. optionality is the best among Canadian names.
The firm indicated that Canopy’s option to acquire U.S. multistate operator Acreage Holdings will likely be bolstered in the event of a change in U.S. federal cannabis laws. But for now both Canopy and Acreage are unprofitable, noted Bennett. According to the analyst, the fundamental outlook for other U.S. companies is "far superior".
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where CGC declined for three days, in of 380 cases, the price declined further within the following month. The odds of a continued downward trend are .
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
CGC broke above its upper Bollinger Band on March 27, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for CGC entered a downward trend on March 18, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Momentum Indicator moved above the 0 level on March 18, 2024. You may want to consider a long position or call options on CGC as a result. In of 77 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for CGC just turned positive on March 11, 2024. Looking at past instances where CGC's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
CGC moved above its 50-day moving average on March 20, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for CGC crossed bullishly above the 50-day moving average on March 25, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 10 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a +5 3-day Advance, the price is estimated to grow further. Considering data from situations where CGC advanced for three days, in of 197 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Price Growth Rating for this company is (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 (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 (1.952) is normal, around the industry mean (50.052). P/E Ratio (0.000) is within average values for comparable stocks, (91.047). CGC's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (2.661). CGC has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.028). P/S Ratio (2.088) is also within normal values, averaging (66.635).
The Tickeron SMR rating for this company is (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 (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.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CGC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a producer of medical marijuana
Industry PharmaceuticalsOther