(VIANEWS) – Cronos Group shares have increased 10.16% on NASDAQ since their last increase, adding to their recent success.
About Cronos Group
Cronos Group Inc. is a premier cannabinoid company, manufacturing, marketing and distributing hemp-derived supplements and cosmetics under their Lord Jones brand in the US. Additionally, they cultivate, manufacture and market cannabis-derived products for both medical and adult-use markets through PEACE NATURALS wellness platform or through adult-use brands like Spinach. Established in 2012 in Toronto Canada.
Yearly Analysis
Cronos Group (CNQ:CA) stock is currently trading at EUR2.06, which is significantly below its 52-week high of EUR3.62 but higher than its 52-week low of EUR1.64. This could indicate that the stock has been oversold, providing investors with an opportunity to acquire it at a cheaper price; however, market fluctuations or other factors may still impact its value and could decrease it even further.
Cronos Group’s sales growth this year is projected to be negative 12.5%, which is cause for alarm. Thankfully, next year is projected to bring significant improvement with 23.1% growth anticipated; suggesting the company may be experiencing some short-term difficulties but will bounce back with stronger performance over time.
Cronos Group’s EBITDA, which measures its profitability, currently stands at -2.27. This indicates that it may be operating at a loss and raises concern among investors; however, negative EBITDAs are commonplace within the cannabis industry which faces intense competition as well as regulatory hurdles.
Cronos Group stock may present an attractive investment opportunity for those willing to accept higher levels of risk. Before making any decisions based on this stock’s valuation or any other aspects, investors should research its fundamentals thoroughly as well as other elements which could alter its worth.
Technical Analysis
Cronos Group stock is currently trading above both its 50-day and 200-day moving averages, signaling a bullish trend for both short- and long-term investors looking for its upward trajectory to continue.
Also, the stock’s volume is currently 2733020, which is 57.59% above its average volume of 1735320 and indicates strong investor enthusiasm that could drive its price higher.
Cronos Group stock has shown relatively consistent volatility over the last several weeks, averaging 2.45% in any given week, 0.16% in any given month, and 2.70% quarterly on average. Its highest amplitude of average volatility reached 2.75% weekly, 2.63% monthly and 2.70% quarterly respectively.
Based on the stochastic oscillator – an indicator that measures overbought and oversold conditions – Cronos Group stock appears to be oversold (=20). This may signal that now is an opportune moment to invest as it is likely undervalued.
Quarter Analysis
Cronos Group has experienced negative sales growth for both the current and upcoming quarters, though significant growth estimates of 80-95.2 are projected for each. Furthermore, year-on-year quarterly revenue growth dropped 11.9% between 2018-19.
Cronos Group’s negative sales growth can be attributed to various factors, including economic conditions, competition or changes in consumer preferences; however, their projected sales growth estimates for current and subsequent quarters indicate they remain optimistic in their ability to recover sales growth and grow revenue.
Investors should carefully consider both negative sales growth and growth estimates when evaluating Cronos Group as an investment opportunity. They must thoroughly examine its fundamentals, industry trends, and overall market conditions prior to making any definitive investment decisions.
Equity Analysis
Cronos Group provides investors with earnings per share (EPS) and return on equity (ROE) data that highlights potential issues for them as investors, such as an EPS of EUR-0.39. This indicates that it may not currently be producing profits for its shareholders.
ROE for the past twelve months of -12.1% indicates a loss of profitability relative to shareholder equity – another concerning sign for investors.
Therefore, investors should exercise extreme caution when investing in Cronos Group given its current profitability indicators being negative. Before making any definitive investment decisions it would be prudent for them to conduct additional research and analysis of its finances, industry trends, and growth prospects before making their final investment decisions.
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