Aphria Inc. (APHA) Gains But Lags Market: What You Should Know

In the latest trading session, Aphria Inc. (APHA) closed at $6.24, marking a +0.97% move from the previous day. This move lagged the S&P 500's daily gain of 1.21%. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 1.35%.

Prior to today's trading, shares of the company had lost 4.19% over the past month. This has lagged the Medical sector's loss of 1.61% and the S&P 500's loss of 3.6% in that time.

Wall Street will be looking for positivity from APHA as it approaches its next earnings report date. The company is expected to report EPS of -$0.02, down 128.57% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $103.90 million, up 923.6% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.06 per share and revenue of $500.27 million, which would represent changes of +154.55% and +180.92%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for APHA. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 350% higher. APHA is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, APHA is holding a Forward P/E ratio of 98.88. For comparison, its industry has an average Forward P/E of 27.45, which means APHA is trading at a premium to the group.

The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 21% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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