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MARKETS LIVE BLOG:

STOCKS JUMP AFTER U.S. INFLATION REPORT RELEASE

Roundhill Magnificent Seven ETF hits all-time high on Wednesday

Aurora Cannabis (ACB) Moves 46.0% Higher: Will This Strength Last?

Zacks Equity Research
·2 min read

Aurora Cannabis Inc. (ACB) shares soared 46% in the last trading session to close at $9.23. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 46.6% gain over the past four weeks.

The sharp upsurge in Aurora'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 loss of $0.18 per share in its upcoming report, which represents a year-over-year change of +88%. Revenues are expected to be $52.11 million, up 10.1% 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.

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For Aurora Cannabis, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ACB 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 >>>>

Aurora Cannabis is part of the Zacks Medical - Products industry. biote Corp. (BTMD), another stock in the same industry, closed the last trading session 0.6% higher at $5.51. BTMD has returned -4.2% in the past month.

For biote Corp. , the consensus EPS estimate for the upcoming report has changed -15% over the past month to $0.05. This represents a change of -94.7% from what the company reported a year ago. biote Corp. currently has a Zacks Rank of #3 (Hold).

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Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report

biote Corp. (BTMD) : Free Stock Analysis Report

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Zacks Investment Research