S&P 500   4,207.27
DOW   33,336.67
QQQ   324.08
Find and Profitably Trade Stocks at 52-Week Lows
Most profitable less than $5 stock in the world? (Ad)pixel
Why Invest in High-Yield Dividend Stocks?
3 Stable Growth Stocks for Bumpy Times
Disney (NYSE: DIS) Shares Just Gave Investors A Massive Signal
Most profitable less than $5 stock in the world? (Ad)pixel
Solar Stocks Shine Brightly After Passage Of Clean Energy Bill
Large And Small Oil-And-Gas Stocks See Post-Earnings Bounce
Closing prices for crude oil, gold and other commodities
Most profitable less than $5 stock in the world? (Ad)pixel
S&P 500   4,207.27
DOW   33,336.67
QQQ   324.08
Find and Profitably Trade Stocks at 52-Week Lows
Most profitable less than $5 stock in the world? (Ad)pixel
Why Invest in High-Yield Dividend Stocks?
3 Stable Growth Stocks for Bumpy Times
Disney (NYSE: DIS) Shares Just Gave Investors A Massive Signal
Most profitable less than $5 stock in the world? (Ad)pixel
Solar Stocks Shine Brightly After Passage Of Clean Energy Bill
Large And Small Oil-And-Gas Stocks See Post-Earnings Bounce
Closing prices for crude oil, gold and other commodities
Most profitable less than $5 stock in the world? (Ad)pixel
S&P 500   4,207.27
DOW   33,336.67
QQQ   324.08
Find and Profitably Trade Stocks at 52-Week Lows
Most profitable less than $5 stock in the world? (Ad)pixel
Why Invest in High-Yield Dividend Stocks?
3 Stable Growth Stocks for Bumpy Times
Disney (NYSE: DIS) Shares Just Gave Investors A Massive Signal
Most profitable less than $5 stock in the world? (Ad)pixel
Solar Stocks Shine Brightly After Passage Of Clean Energy Bill
Large And Small Oil-And-Gas Stocks See Post-Earnings Bounce
Closing prices for crude oil, gold and other commodities
Most profitable less than $5 stock in the world? (Ad)pixel
S&P 500   4,207.27
DOW   33,336.67
QQQ   324.08
Find and Profitably Trade Stocks at 52-Week Lows
Most profitable less than $5 stock in the world? (Ad)pixel
Why Invest in High-Yield Dividend Stocks?
3 Stable Growth Stocks for Bumpy Times
Disney (NYSE: DIS) Shares Just Gave Investors A Massive Signal
Most profitable less than $5 stock in the world? (Ad)pixel
Solar Stocks Shine Brightly After Passage Of Clean Energy Bill
Large And Small Oil-And-Gas Stocks See Post-Earnings Bounce
Closing prices for crude oil, gold and other commodities
Most profitable less than $5 stock in the world? (Ad)pixel

Cronos Group Inc's Revenues Are Up, Is It Time to Buy?

Cronos Group Incs Revenues Are Up, Is It Time to Buy?Cronos Group (NASDAQ: CRON) had an eventful Q1. The company's revenues surged 25.05M, or up 98.5% YoY. Other fundamentals for the stock were also clearly in the green, with net income up 79.77% and diluted EPS up 79.55%. The company's strong prior performance could be an indication that it will keep this trend moving forward and post a positive earnings card for Q2'22 that's scheduled for August 9. 

When Cronos Group's Q1 results were announced this year the company's shares increased 14% after it beat revenue estimates by $1M. A similar jump could be on the cards if Q2's results are equally or more positive than the last. So let's peer behind the curtain and see if such a leap is possible.

Analyst Expectations

Analysts are divided down the middle when it comes to the company's performance in the near term. Over the last three months, the company has received 6 revenue up revisions and 5 revenue down revisions. One analyst gave the stock a positive revision for its EPS. Shares of Cronos group currently have a 31.54% upside to the MarketBeat consensus price target. Analysts have generally overestimated the performance of Cronos Group's shares over the last five years.

In terms of the company's rating, the company was covered by 13 analysts, giving it an average rating of buy. This was helped by 3 analysts giving the stock a strong buy recommendation, and 2 analysts giving it a buy recommendation. The majority of analysts (7) who reviewed the stock gave it a hold recommendation while one analyst gave it a sell rating.

Growth and Efficiency

Something that's working in the company's favor is the fact that its revenue growth and efficiency metrics are beating the sector medians for several important ratios. The company's revenue growth is 70.65% or a 355.62% difference from the sector median of 15.51%. On an FWD basis, the company's growth is also strong at 51.89% to the sector median of 14.36%.

Although Cronos Group is presently unprofitable, there is evidence that its utilization of assets is more efficient than its sector competitors. This efficiency is reflected in its return on total capital at -7.86% to the sectors -20.39%. The company's return on total assets at -19.51% is also less than -28.18% for the sector.


Investors' Risk Appetite for Speculative Stocks

One factor that may throw a spanner in the works is that cannabis stocks as a whole have been suppressed since 2021. Cronos Group's shares are currently down -20.24% YTD and several of the company's competitors have also suffered a contraction in their share prices. Canopy Growth (NASDAQ: CGC) suffered more with a -72.47% contraction and Tilray Inc (NASDAQ: TLRY) contracted -47.53%.
 
The lack of hope for federal legalization has been a major headwind for this industry, as well as investors parking their money into more defensive investments and away from value stocks. Companies with negative earnings have been punished by a rotation into dividend-paying companies as a recession becomes more apparent with GDP falling for a second straight quarter. 

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Cronos Group (CRON)
2.0153 of 5 stars
$3.05+0.7%N/A-10.52Hold$4.50
Canopy Growth (CGC)
2.2386 of 5 stars
$3.15-4.3%N/A-0.57Hold$8.51
Tilray (TLRY)
2.123 of 5 stars
$3.85-5.2%N/A-4.33Hold$6.78
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in Cronos Group right now?

Before you consider Cronos Group, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Cronos Group wasn't on the list.

While Cronos Group currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:

Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastInvesting in What You Know Has Changed

What investors can learn from studying the past, as well as offering some ideas about asset classes with future potential.

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | contact@marketbeat.com | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Privacy Policy | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer.