(VIANEWS) – Cronos Group (NASDAQ: CRON) saw its shares surge 32.37% over 21 trading sessions, from EUR1.73 on August 11th to EUR2.29 at 13:39 EST on Tuesday afternoon – this remarkable increase was marked by three consecutive sessions of gains; on the other hand, the NASDAQ fell 0.6% while experiencing two sessions of gains; Cronos Group closed at EUR2.40 which represents a discount of 33.63% off its 52-week high of EUR3.62.
About Cronos Group
Cronos Group Inc. operates in the cannabinoid industry, manufacturing and distributing hemp-derived supplements and cosmetics under their Lord Jones brand in the US market. Additionally, they cultivate, manufacture, and market cannabis and cannabis-derived products for both medical and adult-use markets, selling through their wellness platform PEACE NATURALS and adult-use brands Spinach through wholesale channels or direct client channels. Established in 2012 and headquartered out of Toronto Canada since then – Cronos Group stands out as an industry leader.
Yearly Analysis
Cronos Group’s stock is currently underperforming compared to its 52-week high but surpassing its 52-week low, and its 12.2% sales growth this year may indicate underperformance; however, expected 20% sales growth next year suggests potential recovery. Unfortunately, its negative EBITDA of -2.27 indicates it may not become profitable anytime soon.
Investors must also carefully assess market conditions and company financial performance, including its balance sheet and cash flow statement. Prior to making any investment decisions, further research and consulting with a financial advisor are strongly advised.
Technical Analysis
Cronos Group stock has experienced an upward surge recently, surpassing both its 50-day and 200-day moving averages (EUR1.85 and EUR2.16) by a significant amount – signalling an upward trend over recent weeks and months.
Notably, today’s volume of 4332137 was substantially higher than its average volume of 2228460, suggesting increased interest and activity surrounding this stock.
Looking at the stock’s volatility, we can see that its intraday variation average was 2.266% over the past week and 3.905% in terms of volatility over its three month lifecycle. In terms of past performance however, volatility peaked with an amplitude of 4.266% during week one and 3.904% during month three.
According to the stochastic oscillator, an extensively utilized technical indicator, Cronos Group stock is currently considered “oversold” (=20). This indicates that it may be undervalued at its current price and could provide investors with long-term gains an excellent opportunity for investment.
Overall, Cronos Group stock appears to be an attractive buy based on its current trend, high trading volume, and oversold status as indicated by its stochastic oscillator. As with any investment decision, however, extensive research and analysis should precede making any definitive statements or decisions.
Quarter Analysis
Cronos Group’s recent financial performance has demonstrated negative sales growth for both its current quarter (-19.1%) and next quarter (8.9%), though growth estimates for these periods were set relatively high: 80% and 90.5%, respectively, suggesting optimism about its ability to recover from recent sales decline.
Cronos Group still managed a positive annual revenue growth over the last twelve trailing months with only 11.9% revenue declining year-on-year and currently sitting at $86.111M, showing they possess a solid revenue foundation which could support future expansion efforts.
Overall, investors should remain wary of Cronos Group’s near-term prospects due to its negative sales growth and uncertainly regarding COVID-19 pandemic. Nonetheless, given the company’s growth estimates for current and upcoming quarters there may be room for improvement in financial performance; as with any investment decision further research and analysis must be completed before making a final determination.
Equity Analysis
According to Cronos Group’s financial data, its trailing twelve month earnings per share (EPS) currently stands at EUR-0.41. This indicates that they are experiencing negative EPS growth at this time.
Cronos Group’s return on equity (ROE) for the twelve trailing months stands at an unfavorable -12.1%, suggesting it is currently unprofitable and failing to generate shareholder returns on shareholder’s equity.
Given Cronos Group’s negative earnings per share and return on equity figures, investors should tread cautiously when considering investing in this company. Before considering an investment decision, investors should closely monitor financial performance of Cronos Group and look for signs of improvement in profitability or return on equity before considering an investment decision.
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