Green Thumb Industries Inc. (GTBIF) shares soared 22.3% in the last trading session to close at $15.35. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 15.4% loss over the past four weeks.
The sharp upsurge in GTBIF’s shares can be attributed to the DEA’s reported decision to reclassify marijuana from Schedule I (reserved for drugs with a high potential for abuse) to Schedule III (reserved for drugs with a moderate to low potential for physical and psychological dependence) under the Controlled Substances Act. This regulatory shift is likely to have sparked investors interest for the cannabis stocks, as it may drive demand with lesser restriction.
This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $271.03 million, up 9.1% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Green Thumb Industries Inc., the consensus EPS estimate for the quarter has been revised 5.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on GTBIF going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Green Thumb Industries Inc. is part of the Zacks Medical – Products industry. Evolus, Inc. (EOLS), another stock in the same industry, closed the last trading session 0.5% higher at $11.77. EOLS has returned -14.9% in the past month.
Evolus’ consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.07. Compared to the company’s year-ago EPS, this represents a change of +58.8%. Evolus currently boasts a Zacks Rank of #2 (Buy).
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