Track market-moving stories before they get noisy

SMITHS FALLS, Ontario--(BUSINESS WIRE)--Canopy Growth Corporation (“Canopy Growth”, “our”, “we” or the “Company”) (TSX: WEED) (Nasdaq: CGC), a leading global company committed to bettering lives through cannabis, will release its financial results for the second quarter fiscal year 2027 ended September 30, 2026, before financial markets open on November 6, 2026. Following the release of its financial results, Canopy Growth will host an audio webcast with Luc Mongeau, CEO, and Tom Stewart, CFO,.

In the latest close session, Canopy Growth Corporation (CGC - Free Report) was down 6.27% at $0.71. This change lagged the S&P 500's 1.11% loss on the day. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 1.88%.

The stock of company has fallen by 17.13% in the past month, lagging the Medical sector's loss of 0.4% and the S&P 500's gain of 2.06%.

Market participants will be closely following the financial results of Canopy Growth Corporation in its upcoming release. The company's upcoming EPS is projected at -$0.03, signifying a 200.00% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $59.12 million, up 22.09% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of -$0.1 per share and a revenue of $243.53 million, demonstrating changes of +77.78% and +18.24%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Canopy Growth Corporation. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Canopy Growth Corporation possesses a Zacks Rank of #3 (Hold).

The Medical - Products industry is part of the Medical sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

SMITHS FALLS, Ontario--(BUSINESS WIRE)--Canopy Growth Corporation (“Canopy Growth”, “our”, “we” or the “Company”) (TSX: WEED) (Nasdaq: CGC), a leading global company committed to bettering lives through cannabis, today announced that its Smiths Falls, Ontario facility (“Smiths Falls”) has received European Union Good Manufacturing Practice (“EU GMP”) certification for manufacturing and packaging activities from the Tübingen Regional Council (Regierungspräsidium Tübingen), Baden-Württemberg's com.

The hope for many Canopy Growth (CGC -0.92%) investors is that in the long run, there will be a big payoff from the stock. Once the U.S. legalizes marijuana, the Canadian-based company will generate significant growth, become the behemoth they expect it to be, its valuation will rise, and their losses will turn into gains.

The problem is that it's full of assumptions. Legalization is by no means a guarantee, and it's definitely not on the horizon. Canopy Growth, meanwhile, would still face plenty of competition in the U.S. market, even if it were able to access it. The company's problems wouldn't be fixed simply because a new market opened up.

The long-term picture may be exciting in the best-case scenario, but the bigger question investors should be asking today is whether Canopy Growth will still be around in five years, and whether the cannabis company will be around long enough to profit from future opportunities.

Image source: Getty Images.

Canopy Growth has continued to incur steep losses and burn through cashI've written about Canopy Growth for several years, and it's always been the same old story: lots of long-term hope, but little in the way of proof that it's actually doing well and that it has a path to profitability.

The key number for investors to look at is cash flow. This is a better reflection of how the business is doing than what the income statement shows, which can be skewed by non-cash items, including impairment and revaluation items.

In its most recent quarter, which ended on June 30, Canopy Growth once again burned through cash, with its operating cash flow totaling a negative 25 million Canadian dollars. A year ago, it used up CA$10 million.

The sobering sign is that with cash and cash equivalents totaling CA$336.6 million as of the end of the period, the burn rate is sustainable enough that the business isn't in any imminent danger of running out of cash.

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The company should survive another five years, but it may not live on as it does todayCanopy Growth has been able to continually raise cash, and with a solid amount on its books and a manageable burn rate, I don't believe it's in a perilous position. However, that doesn't mean that it might not end up getting acquired in the future and end up part of another business.

The stock has already lost 99% of its value in five years. Its shrinking valuation could make it inevitable for an acquisition to take place, for a company to acquire it for its assets. But as an investment, this is still a stock that investors are better off steering clear of, due to the significant risk that it carries.

Shares of Canopy Growth Corporation (NASDAQ:CGC – Get Free Report) have been given an average rating of “Hold” by the five analysts that are presently covering the stock, MarketBeat.com reports. One analyst has rated the stock with a sell recommendation, two have assigned a hold recommendation and two have given a buy recommendation to the company.

A number of equities research analysts recently weighed in on the company. Wall Street Zen upgraded Canopy Growth from a “sell” rating to a “hold” rating in a research report on Saturday, September 26th. Weiss Ratings downgraded Canopy Growth from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Wednesday, September 16th.

Read Our Latest Research Report on CGC

Canopy Growth Stock Performance Shares of Canopy Growth stock opened at $0.90 on Thursday. The company’s 50 day moving average price is $0.96 and its two-hundred day moving average price is $1.00. The firm has a market capitalization of $402.66 million, a P/E ratio of -1.99 and a beta of 0.83. Canopy Growth has a fifty-two week low of $0.84 and a fifty-two week high of $2.38. The company has a debt-to-equity ratio of 0.31, a current ratio of 3.04 and a quick ratio of 2.39. Canopy Growth (NASDAQ:CGC – Get Free Report) last announced its quarterly earnings results on Friday, August 7th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.04) by $0.02. Canopy Growth had a negative net margin of 65.33% and a negative return on equity of 21.91%. The company had revenue of $142.62 million during the quarter, compared to the consensus estimate of $58.21 million. On average, equities analysts forecast that Canopy Growth will post -0.1 earnings per share for the current fiscal year.

Institutional Inflows and Outflows Several institutional investors and hedge funds have recently made changes to their positions in CGC. Caitong International Asset Management Co. Ltd boosted its position in Canopy Growth by 723.5% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 4,595,330 shares of the company’s stock worth $5,239,000 after buying an additional 4,037,281 shares during the period. Lazard Asset Management LLC acquired a new position in Canopy Growth in the 1st quarter valued at approximately $1,716,000. Finally, Royal Bank of Canada increased its position in Canopy Growth by 1,115.6% in the 1st quarter. Royal Bank of Canada now owns 975,967 shares of the company’s stock valued at $927,000 after acquiring an additional 895,680 shares during the period. Institutional investors and hedge funds own 3.33% of the company’s stock.

Canopy Growth Company Profile (Get Free Report)

Canopy Growth Corporation is a cannabis company headquartered in Smiths Falls, Ontario, Canada. Founded in 2013 as Tweed Marijuana Inc, the company adopted the Canopy Growth name in 2015 and has developed a portfolio of cannabis brands serving both adult-use and medical markets.

Canopy Growth’s products include dried cannabis flower, pre-rolls, cannabis oils, softgels, edibles, beverages and vaporization products. Its brand portfolio has included Tweed, 7ACRES, Doja, Deep Space and other cannabis brands, as well as Storz & Bickel vaporization products.

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Canopy Growth Corporation (CGC - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this company have returned -5.1% over the past month versus the Zacks S&P 500 composite's -0.4% change. The Zacks Medical - Products industry, to which Canopy Growth belongs, has lost 6.8% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Canopy Growth is expected to post a loss of $0.03 per share for the current quarter, representing a year-over-year change of -200%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of -$0.1 for the current fiscal year indicates a year-over-year change of +77.8%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $0.07 indicates a change of +26.7% from what Canopy Growth is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Canopy Growth is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Canopy Growth, the consensus sales estimate for the current quarter of $59.12 million indicates a year-over-year change of +22.1%. For the current and next fiscal years, $243.53 million and $261.59 million estimates indicate +18.2% and +7.4% changes, respectively.

Last Reported Results and Surprise HistoryCanopy Growth reported revenues of $58.63 million in the last reported quarter, representing a year-over-year change of +12.5%. EPS of -$0.02 for the same period compares with -$0.14 a year ago.

Compared to the Zacks Consensus Estimate of $58.52 million, the reported revenues represent a surprise of +0.2%. The EPS surprise was +50%.

Over the last four quarters, Canopy Growth surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Canopy Growth is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Canopy Growth. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Canopy Growth Corporation (“Canopy Growth”, “our”, “we” or the “Company”) (TSX: WEED) (Nasdaq: CGC), a leading global company committed to bettering lives through cannabis, today announced the appointment of Sebastian Blöte as Country Manager for Germany, effective October 1, 2026.

Mr. Blöte will lead Canopy Growth's commercial strategy in Germany, with responsibility for expanding sales and strengthening execution across the market, deepening connections with partners and healthcare professionals, and driving growth to fully capture the significant potential of the German medical cannabis market.

The appointment of Mr. Blöte builds on the progress Canopy Growth has made over the past year to strengthen its international medical cannabis business, including enhancing its European Union Good Manufacturing Practice supply capabilities from its Canadian cultivation operations.

“Over the last year, we have put the pieces in place to build a stronger international medical cannabis business, delivering double-digit sequential growth for the past three quarters,” said Luc Mongeau, Chief Executive Officer, Canopy Growth. “We have strengthened our cultivation and supply capabilities, broadened our portfolio and sharpened our commercial focus. Bringing Sebastian into the business is the next step in that strategy, adding more experienced leadership on the ground as we look to accelerate growth and capture more of the opportunity we see in Germany and across Europe.”

Mr. Blöte brings more than a decade of commercial leadership in the European cannabis industry. He most recently served as European Sales Director, then Digital Sales Director, at a leading European medical cannabis company based in Germany, leading its Swiss market entry, and a product launch in Austria. Earlier in his career, Mr. Blöte co-founded and led a medical cannabis import and distribution company in Germany.

“I'm excited to build deeper relationships with clinics, pharmacies and healthcare professionals to better understand what they need from us and translate that into stronger commercial execution,” said Sebastian Blöte. “Germany has a large and evolving medical cannabis ecosystem and Canopy Growth has the portfolio, supply capabilities and infrastructure in place; the opportunity now is to build on that foundation and increase the pace at which we grow.”

About Canopy Growth

Canopy Growth is a leading global company committed to bettering lives through cannabis. With a focus on cultivation excellence, quality, trust, innovation and disciplined execution, Canopy Growth is a consumer-centric company serving patients, consumers and partners alike.

The Company’s portfolio of owned and licensed brands, including Tweed, 7ACRES, DOJA, Deep Space, DeeLish, Claybourne, MTL Cannabis, Low Key by MTL and R’belle, as well as category-defining Storz & Bickel, delivers innovative cannabis products to consumers across Canada and beyond. It is also Canada’s leading provider of medical cannabis services through Spectrum Therapeutics, Abba Medix, Apollo, and Canada House Clinics.

The Company also holds an unconsolidated, non-controlling interest in Canopy USA, LLC, which provides exposure to the U.S. THC market.

Guided by its commitment to leadership, excellence, trust and innovation, Canopy Growth is working to shape a future where the plant is trusted for its ability to better lives.

For more information visit www.canopygrowth.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260928356246/en/

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

Canopy Growth Announces Adjournment of 2026 Annual General and Special Meeting Due to Lack of Quorum Canopy Growth Corporation (“Canopy Growth”, “our”, “we” or the “Company”) (TSX: WEED) (Nasdaq: CGC), a leading global company committed to bettering lives through cannabis, today announced that, due to the requisite quorum not being present, its Annual General and Special Meeting of shareholders (the “Meeting”), scheduled for Friday, September 25, 2026, at 1:00 p.m. ET via live webcast, was convened and then adjourned.

The Meeting will reconvene on Friday, October 23, 2026, at 1:00 p.m. ET via live audio webcast at www.virtualshareholdermeeting.com/WEED2026, providing holders (“Shareholders”) of Canopy Growth common shares (the “Shares”) with additional time to vote.

During the adjournment period, the Company will continue to solicit votes with respect to the proposals set out in its definitive proxy statement dated August 7, 2026 (the “Proxy Statement”). Shareholders who have not yet voted are encouraged to do so as soon as possible.

Shareholders of record as of close of business on July 31, 2026, remain eligible to vote at the adjourned Meeting. Shareholders who have already voted do not need to vote again, and previously submitted proxies will remain valid.

Your Vote is Important

Under Nasdaq listing rules and the Company’s By-Laws, 33 1/3% of outstanding Shares entitled to vote must be present in person, by remote communication or by proxy at the Meeting for quorum to be achieved.

Shareholders who have not yet voted are encouraged to submit their vote before the new proxy voting deadline of 9:00 a.m. ET on October 23, 2026.

Most Shareholders who received a 16-digit control number from Broadridge Financial Solutions can vote:

Online: http://proxyvote.com

By Phone: 1-800-474-7493 (English) or 1-800-474-7501 (French)

By Mail: Using the prepaid envelope accompanying the Form of Proxy or Voting Instruction Form

Many Shareholders can also vote by contacting the Company’s proxy solicitation agent, Sodali & Co., at 1-833-830-8205 toll free in North America, 1-289-695-3075 collect outside North America, or by email at [email protected].

Shareholders who hold Shares at Interactive Brokers LLC can vote online at: http://proxypush.com using the provided control number.

Clients of Robinhood Securities, LLC who are eligible to vote will receive a voting notice by email from [email protected]. Voting is hosted by Say Technologies, with voting and materials available directly from the email.

The Proxy Statement and the Company’s 2026 fiscal annual report, which includes the Company’s 2026 fiscal year consolidated financial statements (collectively, the “Meeting Materials”) are filed on EDGAR at www.sec.gov and SEDAR+ under the Company’s profile at www.sedarplus.ca. The Meeting Materials are also available at: https://canopygrowth.com/agm/.

About Canopy Growth

Canopy Growth is a leading global company committed to bettering lives through cannabis. With a focus on cultivation excellence, quality, trust, innovation and disciplined execution, Canopy Growth is a consumer-centric company serving patients, consumers and partners alike.

The Company’s portfolio of owned and licensed brands, including Tweed, 7ACRES, DOJA, Deep Space, DeeLish, Claybourne, MTL Cannabis, Low Key by MTL and R’belle, as well as category-defining Storz & Bickel, delivers innovative cannabis products to consumers across Canada and beyond. It is also Canada’s leading provider of medical cannabis services through Spectrum Therapeutics, Abba Medix, Apollo, and Canada House Clinics.

The Company also holds an unconsolidated, non-controlling interest in Canopy USA, LLC, which provides exposure to the U.S. THC market.

Guided by its commitment to leadership, excellence, trust and innovation, Canopy Growth is working to shape a future where the plant is trusted for its ability to better lives.

For more information visit www.canopygrowth.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260925390740/en/

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

In the latest close session, Canopy Growth Corporation (CGC - Free Report) was down 2.34% at $0.94. The stock's performance was behind the S&P 500's daily loss of 0.76%. Elsewhere, the Dow lost 0.68%, while the tech-heavy Nasdaq lost 1.13%.

Shares of the company have depreciated by 9.61% over the course of the past month, underperforming the Medical sector's loss of 3.03%, and the S&P 500's gain of 1.26%.

The investment community will be paying close attention to the earnings performance of Canopy Growth Corporation in its upcoming release. The company's upcoming EPS is projected at -$0.03, signifying a 200.00% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $59.12 million, showing a 22.09% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of -$0.1 per share and revenue of $243.53 million, which would represent changes of +77.78% and +18.24%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Canopy Growth Corporation. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Canopy Growth Corporation boasts a Zacks Rank of #3 (Hold).

The Medical - Products industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 96, finds itself in the top 40% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CGC in the coming trading sessions, be sure to utilize Zacks.com.

SMITHS FALLS, Ontario--(BUSINESS WIRE)--Canopy Growth Corporation (“Canopy Growth”, “our”, “we” or the “Company”) (TSX: WEED) (Nasdaq: CGC), a leading global company committed to bettering lives through cannabis, today announced it has extended the proxy voting deadline for its upcoming Annual General and Special Meeting of shareholders (the “Meeting”) to 12:00 p.m. ET on Friday, September 25, 2026.

The Meeting will be held later the same day, at 1:00 p.m. ET via live audio webcast at www.virtualshareholdermeeting.com/WEED2026

The extension gives holders (“Shareholders”) of Canopy Growth common shares (the “Shares”) additional time to vote and helps the Company achieve quorum for the Meeting. Under Nasdaq listing rules and the Company’s By-Laws, 33 1/3% of outstanding Shares entitled to vote must be present in person, by remote communication or by proxy at the Meeting. If quorum is not achieved, the Meeting must be adjourned.

Your Vote Matters

Shareholders of record as of July 31, 2026, are eligible to vote.

Most Shareholders who received a 16-digit control number from Broadridge Financial Solutions can vote:

Online: http://proxyvote.com

By Phone: 1-800-474-7493 (English) or 1-800-474-7501 (French)

By Mail: Using the prepaid envelope accompanying the Form of Proxy or Voting Instruction Form

Many Shareholders can also vote by contacting the Company’s proxy solicitation agent, Sodali & Co., at 1-833-830-8205 toll free in North America, 1-289-695-3075 collect outside North America, or by email at [email protected].

Shareholders who hold Shares at Interactive Brokers LLC can vote online at: http://proxypush.com using the provided control number.

Clients of Robinhood Securities, LLC who are eligible to vote will receive a voting notice by email from [email protected]. Voting is hosted by Say Technologies, with voting and materials available directly from the email.

The Company’s definitive proxy statement dated August 7, 2026, and 2026 fiscal annual report (which includes the Company’s 2026 fiscal year consolidated financial statements) (collectively, the “Meeting Materials”) are filed on EDGAR at www.sec.gov and SEDAR+ under the Company’s profile at www.sedarplus.ca. The Meeting Materials are also available at: https://canopygrowth.com/agm/.

About Canopy Growth

Canopy Growth is a leading global company committed to bettering lives through cannabis. With a focus on cultivation excellence, quality, trust, innovation and disciplined execution, Canopy Growth is a consumer-centric company serving patients, consumers and partners alike.

The Company’s portfolio of owned and licensed brands, including Tweed, 7ACRES, DOJA, Deep Space, DeeLish, Claybourne, MTL Cannabis, Low Key by MTL and R’belle, as well as category-defining Storz & Bickel, delivers innovative cannabis products to consumers across Canada and beyond. It is also Canada’s leading provider of medical cannabis services through Spectrum Therapeutics, Abba Medix, Apollo, and Canada House Clinics.

The Company also holds an unconsolidated, non-controlling interest in Canopy USA, LLC, which provides exposure to the U.S. THC market.

Guided by its commitment to leadership, excellence, trust and innovation, Canopy Growth is working to shape a future where the plant is trusted for its ability to better lives.

For more information visit www.canopygrowth.com.

SMITHS FALLS, Ontario--(BUSINESS WIRE)--Canopy Growth Corporation (“Canopy Growth”, “our”, “we” or the “Company”) (TSX: WEED) (Nasdaq: CGC), a leading global company committed to bettering lives through cannabis, today announced that it will supply four Canadian-grown medical cannabis flower strains for distribution in the United Kingdom (the “UK”), expanding the reach of its international cannabis business into another European market. The Canadian-grown flower strains will be supplied to GROW.

Canopy Growth Corporation (CGC - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Shares of this company have returned -7% over the past month versus the Zacks S&P 500 composite's -2.4% change. The Zacks Medical - Products industry, to which Canopy Growth belongs, has lost 7.2% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Canopy Growth is expected to post a loss of $0.03 per share for the current quarter, representing a year-over-year change of -200%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of -$0.1 for the current fiscal year indicates a year-over-year change of +77.8%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $0.07 indicates a change of +26.7% from what Canopy Growth is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Canopy Growth.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Canopy Growth, the consensus sales estimate for the current quarter of $59.12 million indicates a year-over-year change of +22.1%. For the current and next fiscal years, $243.53 million and $261.59 million estimates indicate +18.2% and +7.4% changes, respectively.

Last Reported Results and Surprise HistoryCanopy Growth reported revenues of $58.63 million in the last reported quarter, representing a year-over-year change of +12.5%. EPS of -$0.02 for the same period compares with -$0.14 a year ago.

Compared to the Zacks Consensus Estimate of $58.52 million, the reported revenues represent a surprise of +0.2%. The EPS surprise was +50%.

Over the last four quarters, Canopy Growth surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Canopy Growth is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Canopy Growth. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

As seen in Canopy Growth's (CGC +1.06%) latest quarterly earnings release, a turnaround remains in motion. In its fiscal 2027's first quarter, ended June 30, 2026, the Canada-based cannabis company reported net revenue of $81.2 million CAD ($58.6 million), a 13% increase compared to the prior year's quarter. More importantly, the company reported higher gross margins, a 68% decrease in net losses, and 59% drop in adjusted EBITDA losses.

While not yet a perfect situation, things are clearly improving. So then, why is this marijuana stock still languishing under $1 per share? Chalk it up to two lingering issues, headwinds that have also contributed to the stock's 33% drop over the past 12 months.

Image source: Getty Images.

Still waiting on U.S. legalization progress Earlier in 2026, it seemed as though this would be the year that legalization progress finally took shape on the federal level. Back in April, the U.S. Department of Justice and Drug Enforcement Administration rescheduled medical marijuana from Schedule I to Schedule III.

However, this wasn't the "game changer" speculators treated it as, as suggested by the short-lived rally among marijuana stocks during this time. So far, there's been little movement in getting recreational marijuana rescheduled. Although it would take further reforms to enable Canopy to start exporting its marijuana to the U.S., progress with rescheduling state-licensed recreational marijuana would at least bode well for Canopy's U.S. affiliate, Canopy USA.

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Don't forget the dilution problem Canopy Growth's second big issue is its continued reliance on newly raised outside equity capital. Over the past year, Canopy's share count has increased from 239.9 million to 423 million.

Most of this came from at-the-market (ATM) equity program sales of newly issued stock in mid-2025. A separate ATM program, authorized in August 2025, gives it the right to raise another $200 million. Given the stock's current market cap of $394 million, the company could severely dilute shareholders yet again.

As these two issues persist, keep skipping on Canopy Growth. Stick with stronger cannabis stocks, such as shares in profitable cannabis companies with minimal dilution risk, instead.

Canopy Growth (NASDAQ:CGC – Get Free Report) and Clene (NASDAQ:CLNN – Get Free Report) are both small-cap healthcare companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Valuation & Earnings This table compares Canopy Growth and Clene”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Canopy Growth $251.01 million 1.72 -$190.29 million ($0.45) -2.13 Clene $200,000.00 239.01 -$26.17 million ($3.50) -1.06 Clene has lower revenue, but higher earnings than Canopy Growth. Canopy Growth is trading at a lower price-to-earnings ratio than Clene, indicating that it is currently the more affordable of the two stocks. Analyst Recommendations This is a breakdown of current ratings and recommmendations for Canopy Growth and Clene, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Canopy Growth 1 2 2 0 2.20 Clene 1 0 6 0 2.71 Clene has a consensus target price of $34.00, suggesting a potential upside of 813.98%. Given Clene’s stronger consensus rating and higher possible upside, analysts plainly believe Clene is more favorable than Canopy Growth.

Profitability This table compares Canopy Growth and Clene’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Canopy Growth -65.33% -21.91% -14.34% Clene -20,063.96% N/A -137.04% Risk and Volatility Canopy Growth has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Clene has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Insider & Institutional Ownership 3.3% of Canopy Growth shares are owned by institutional investors. Comparatively, 23.3% of Clene shares are owned by institutional investors. 0.3% of Canopy Growth shares are owned by insiders. Comparatively, 28.3% of Clene shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary Clene beats Canopy Growth on 10 of the 14 factors compared between the two stocks.

About Canopy Growth (Get Free Report)

Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical purposes primarily in the United States, Canada, Germany, and internationally. It operates through Canada Cannabis, International Markets Cannabis, and Storz & Bickel segments. The company offers dried flower, pre-rolled joints, oils, softgel capsules, infused beverages, edibles comprising gummies, and topical formats, as well as vaporizer devices. It sells its products under the Tweed, 7ACRES, DOJA, Deep Space, HiWay, Maitri, Twd., Vert, Spectrum Therapeutics, Canopy Medical, Storz & Bickel, Martha Stewart, and Wana brands. The company was formerly known as Tweed Marijuana Inc. and changed its name to Canopy Growth Corporation in September 2015. Canopy Growth Corporation was incorporated in 2009 and is headquartered in Smiths Falls, Canada.

About Clene (Get Free Report)

Clene Inc., a clinical-stage pharmaceutical company, focuses on the discovery, development, and commercialization of novel clean-surfaced nanotechnology (CSN) therapeutics. Its lead drug candidate is CNM-Au8, which is being studied in various clinical trials, including a completed Phase 2 platform trial to evaluate the safety and efficacy of CNM-Au8 in patients with amyotrophic lateral sclerosis (ALS); completed Phase 2 proof of concept clinical trial in patients with early symptomatic ALS; completed two open-label investigator blinded Phase 2 clinical trials on the brain's energy metabolites; completed Phase 2 clinical trial for the treatment of visual pathway deficits in chronic optic neuropathy for remyelination in stable relapsing Multiple Sclerosis; and a second Phase 2 clinical trial for the treatment of patients with Parkinson's Diseases. The company also develops CNM-AgZn17, a gel polymer suspension of silver and zinc ions that is being developed for the treatment of infectious diseases and to support wound healing; and CNM-ZnAg, a broad-spectrum antiviral and antibacterial agent to treat infection disease and to provide immune support for symptom resolution. In addition, it markets and distributes dietary supplements comprising rMetx, an aqueous zinc-silver ion dietary supplement; and KHC46, an aqueous gold dietary supplement of very low-concentration Au nanoparticles. The company is headquartered in Salt Lake City, Utah.

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Shares of Canopy Growth Corporation (NASDAQ:CGC – Get Free Report) have been assigned a consensus rating of “Hold” from the five ratings firms that are covering the firm, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and two have assigned a buy rating to the company.

A number of brokerages recently commented on CGC. Wall Street Zen lowered shares of Canopy Growth from a “hold” rating to a “sell” rating in a report on Saturday. Weiss Ratings raised shares of Canopy Growth from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, August 26th.

Read Our Latest Research Report on CGC

Insider Transactions at Canopy Growth In related news, insider Christelle Gedeon sold 58,994 shares of the stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $0.97, for a total transaction of $57,224.18. Following the completion of the transaction, the insider directly owned 705,506 shares in the company, valued at approximately $684,340.82. This trade represents a 7.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Luc Mongeau sold 135,231 shares of the stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $0.97, for a total value of $131,174.07. Following the transaction, the chief executive officer owned 1,723,913 shares of the company’s stock, valued at approximately $1,672,195.61. The trade was a 7.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 240,533 shares of company stock worth $240,032. Corporate insiders own 0.35% of the company’s stock. Institutional Investors Weigh In On Canopy Growth Institutional investors have recently bought and sold shares of the company. Two Sigma Securities LLC boosted its position in Canopy Growth by 4.4% during the 2nd quarter. Two Sigma Securities LLC now owns 280,852 shares of the company’s stock worth $343,000 after acquiring an additional 11,942 shares during the last quarter. Commonwealth Equity Services LLC lifted its position in shares of Canopy Growth by 23.1% in the fourth quarter. Commonwealth Equity Services LLC now owns 73,739 shares of the company’s stock worth $84,000 after purchasing an additional 13,814 shares in the last quarter. Boothbay Fund Management LLC bought a new stake in shares of Canopy Growth in the second quarter worth $30,000. Mackenzie Financial Corp boosted its holdings in Canopy Growth by 33.1% during the third quarter. Mackenzie Financial Corp now owns 111,945 shares of the company’s stock worth $163,000 after purchasing an additional 27,823 shares during the last quarter. Finally, PCG Wealth Advisors LLC acquired a new position in Canopy Growth during the fourth quarter worth $32,000. Institutional investors own 3.33% of the company’s stock.

Canopy Growth Stock Down 0.7% Shares of Canopy Growth stock opened at $0.97 on Friday. The company has a market capitalization of $433.80 million, a P/E ratio of -2.15 and a beta of 0.83. The company has a debt-to-equity ratio of 0.31, a current ratio of 3.04 and a quick ratio of 2.39. The business has a 50-day moving average of $0.97 and a two-hundred day moving average of $1.02. Canopy Growth has a 1 year low of $0.84 and a 1 year high of $2.38.

Canopy Growth (NASDAQ:CGC – Get Free Report) last released its quarterly earnings data on Friday, August 7th. The company reported ($0.02) earnings per share for the quarter, beating the consensus estimate of ($0.04) by $0.02. The business had revenue of $142.62 million for the quarter, compared to analysts’ expectations of $58.21 million. Canopy Growth had a negative return on equity of 21.91% and a negative net margin of 65.33%. As a group, equities analysts predict that Canopy Growth will post -0.1 EPS for the current year.

About Canopy Growth (Get Free Report)

Canopy Growth Corporation is a leading Canadian cannabis company engaged in the production, distribution and sale of both medical and recreational cannabis products. Headquartered in Smiths Falls, Ontario, the company cultivates a diversified portfolio of offerings that includes dried flower, pre-rolled joints, oils, softgel capsules and edibles. Canopy Growth also markets derivative products such as beverages and wellness formulations under a range of brands, aiming to serve both patient and adult-use markets.

The company operates through multiple subsidiaries, including Tweed Inc, Spectrum Therapeutics and Tokyo Smoke, each targeting distinct consumer segments.

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Canopy Growth (CGC -0.02%) started trading publicly in Canada in 2014 via a reverse merger (then known as Tweed). It eventually got a listing in the United States in 2018, becoming one of the first U.S.-traded marijuana companies. The stock rocketed higher as investors jumped into the sector, expecting growth to be driven by the legalization of marijuana in more and more regions.

But Wall Street has a habit of getting too excited about hot investment ideas. The marijuana sector's growth didn't live up to expectations, and investors went from exuberance to despair. Today, Canopy Growth is a penny stock. But the first quarter of fiscal 2027 actually showed broad business improvement. Is the business rebound worth buying into?

Image source: Getty Images.

Canopy Growth is in better shape than it was, but at a cost In early 2026, Canopy Growth announced that it was undergoing a strategic recapitalization. Essentially, it reduced its debt, strengthening its balance sheet, by issuing equity to bondholders. Shortly thereafter, the company acquired MTL Cannabis, a Canadian medical marijuana company. That expanded the company's position in this important niche of the marijuana industry.

However, the recapitalization left the company with more shares, which diluted current shareholders. And the MTL Cannabis acquisition was an all-stock transaction, which required issuing even more shares. Over the past year, the share count has increased by over 25%. And over the past three years, the increase is over 400%. Canopy Growth is in a better business position, but the improvement hasn't come cheaply.

Notably, the stock has been trading in penny-stock territory since mid 2025. This is a high-risk investment, no matter how you look at it. And most investors should not consider buying it. But the pot company did just have a strong quarter.

CGC data by YCharts

Canopy Growth's first quarter turned for the better In the first fiscal quarter of 2027, Canopy Growth reported 13% year-over-year revenue growth. But the real story was that all of its business divisions contributed to the top-line improvement. Its Canadian medical marijuana business saw sales growth of 22%; its Canadian adult-use business grew sales by 10%; its international cannabis business grew sales by 10%; and the company's Storz & Bickel business increased sales by 6%.

That wasn't the only good news. Gross margin improved to 27%, two full percentage points higher than the year-earlier period. And the company's net loss was 68% lower than it was a year earlier. Of course, losing money isn't great, but losing less is at least moving in the right direction. The company also refreshed its brand image to help further reset the business.

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If you are an extremely aggressive investor, you might be tempted to take a second look at Canopy Growth. However, one quarter doesn't make a trend, and the business revamp is still relatively fresh. So, even then, investors should probably monitor the stock rather than jump aboard. Yes, that may mean losing out on some early stock gains if business performance continues to improve. However, it will save you from buying into a marijuana story that has already fallen far short of investor expectations before and could easily do so again.

Canopy Growth isn't the only one buying Canopy Growth isn't the only company that's consolidating the marijuana sector. So, more broadly speaking, the industry may be entering a new phase. For example, Tilray Brands (TLRY -0.66%) recently acquired Brew Dog, expanding its beverage business. And Aurora Cannabis (ACB +1.54%) completed an acquisition only to find itself the target of a hostile takeover by peer Curaleaf. Something important may be happening in the marijuana sector. However, it still isn't clear which companies will end up as the winners in this consolidation effort.

So for most investors, it is probably better to keep a penny stock like Canopy on the watch list for now. If the business turnaround continues, it may be worth reconsidering, eventually. But there are just too many moving parts to keep track of right now for all but the most aggressive investors.

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After seeing rival Aurora Cannabis (ACB +9.61%) receive a bid from large multi-state operator Curaleaf, investors may no doubt be wondering if Canopy Growth (CGC +2.50%) could be the next Canadian company that comes into the crosshairs of a larger U.S.-based business.

Canopy Growth has long been an iconic company in the cannabis market, particularly in Canada. Could an acquisition be looming in the near future?

Image source: Getty Images.

Why Canopy Growth may not be as attractive as Aurora Investors may be wondering why Aurora was targeted and not Canopy Growth. They generate comparable revenue, and while Aurora is smaller in market cap ($235 million versus about $460 million), Canopy Growth's brand and iconic name may carry significant value.

But there's a key reason Aurora appears more attractive than Canopy Growth: its focus on international markets. Curaleaf sees it as a huge opportunity to grow and expand quickly.

Canopy Growth has a presence in countries outside of Canada, but its core business depends heavily on the domestic market. In its most recent quarter, which ended on June 30, Canopy Growth's cannabis revenue totaled 65.1 million Canadian dollars. Of that total, just CA$9.6 million, or less than 15%, came from international markets. The rest came from Canadian medical and recreational markets.

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Aurora, by comparison, reported CA$43.3 million in revenue from international cannabis markets during the same period, accounting for 64% of its total net revenue of CA$67.6 million. The highly competitive consumer cannabis market accounted for just 3% of its revenue.

It's not hard to see why an acquiring company might prefer Aurora over Canopy Growth. The former has a more significant international business and far less exposure to the Canadian cannabis market, which simply isn't all that promising.

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Canopy Growth may get bought out eventually, but that doesn't make the stock a buy There's been considerable consolidation taking place in the cannabis market in recent years because, as companies have been struggling, others have been buying them for their assets at dirt cheap prices. It's a scenario that could play out for Canopy Growth. The bad news is that it may not happen until it falls further in value, at which point it might be more of a bargain buy for the company buying the business.

In the meantime, Canopy Growth stock remains highly risky. Investors shouldn't assume that an acquisition will happen anytime soon, and even if it does, it might be at a much lower valuation.

Canopy's balance sheet is finally improving. Medical cannabis is driving the strongest growth.

The 2026 Cannabis Wildcard: How Tax Reform Could Reset Stock ValuationsCanopy Growth NASDAQ: CGC reported first-quarter fiscal 2027 net revenue of C$81.2 million, up 13% from the prior-year period, as the company recorded year-over-year growth across its cannabis and Storz & Bickel businesses.

Chief Executive Officer Luc Mongeau said the quarter marked the first time since he joined the company in January 2025 that Canopy reported year-over-year growth in each of its business lines. He attributed the progress to efforts undertaken during fiscal 2026 to sharpen operations, reduce costs and integrate MTL Cannabis, which Canopy acquired in March.

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Constellation Brands: A Fallen Star or a Hidden Value Play?“Fiscal 2027 is about growth and moving our focus to cultivation to improve yields and accelerate growth, especially in Europe,” Mongeau said. He added that the company is also increasing manufacturing efforts to improve margins and advance toward positive adjusted EBITDA.

Revenue Growth Across Cannabis Channels Canopy’s cannabis segment grew 14% year over year during the quarter. Canadian medical cannabis revenue rose 22% to C$25.8 million, driven by an increase in patient counts over the past year. The business has been expanded through MTL Cannabis’ Canada House clinics and Abba Medix online distribution platform.

Profit from the Green Wave: Top Cannabis Stocks to WatchMongeau said Canopy continued to add patients and increase the number of orders filled during the quarter, supporting its position as the largest Canadian medical cannabis provider. He noted, however, that the company has been affected by reduced reimbursement rates from Veterans Affairs Canada, given its focus on veteran care.

Chief Financial Officer Tom Stewart said the company is working to offset those reimbursement changes through measures including integrating customer-care functions with MTL, renegotiating supplier and partner pricing, and offering more large-format products that can provide greater value to patients while reducing company costs.

Canadian adult-use cannabis revenue increased 10% to C$29.7 million. Mongeau said the business benefited from a strengthened portfolio, including the MTL Cannabis brand, which Canopy intends to distribute more broadly across Canada. According to the company’s cited market-share data, Canopy moved to sixth overall from eighth previously, while reaching a top-two position in premium flower and infused pre-rolls and the top position in softgels.

International cannabis revenue rose 10% year over year, marking Canopy’s third consecutive quarter of sequential international growth. The company cited particularly strong first-quarter performance in Poland, where it said it is now a top-three supplier.

Canopy expects to begin shipping flower to the United Kingdom imminently, with revenue contributions expected in the second half of fiscal 2027.

Margins Improve as Storz & Bickel Returns to Growth Adjusted consolidated gross margin reached 31%, compared with 25% a year earlier, a 600-basis-point improvement. The cannabis segment reported adjusted gross margin of 26%, while reported consolidated gross margin was 22%, reflecting a C$2.6 million non-cash inventory flow-through charge related to the MTL acquisition.

Storz & Bickel revenue rose 6% to C$16.1 million. Its gross margin increased to 48% from 29% in the prior-year quarter, supported by operational and cost-efficiency initiatives as well as tariff refunds recognized during the period. Stewart said margins would have been substantially above the prior year even without the tariff-related benefit.

SG&A expenses increased C$2.1 million from the prior-year quarter, despite the addition of MTL’s operations. Stewart said the company was actively executing against C$8 million in annualized MTL-related synergies, up from C$6 million reported in the prior quarter. Canopy’s stated target is C$10 million in synergies within 18 months of the March transaction closing, and Stewart said there could be upside to that target in both timing and dollar amount.

Adjusted EBITDA loss narrowed 59% from the prior year to C$3.2 million. Management reiterated that it expects to achieve positive adjusted EBITDA during fiscal 2027.

Cultivation, Supply Chain and European Expansion Management identified cultivation efficiency as a central component of future revenue growth and margin expansion. Mongeau said Canopy is implementing improvements to growing techniques, lighting and environmental controls, aided by MTL’s cultivation expertise. Early results have included improvements in yields, THC levels and cost per gram, according to the company.

Canopy has begun cultivating MTL strains at its Kincardine facility under MTL master growers and is introducing new strains to expand its genetic portfolio. Mongeau told analysts that the financial impact from cultivation improvements should begin to emerge toward the end of the second quarter and the beginning of the third quarter, as production cycles are completed.

The company also launched an end-to-end supply-chain initiative after the quarter ended to streamline processes, resize its distribution footprint and optimize labor.

For international markets, Canopy said it has an EU GMP-compliant flower supply chain spanning cultivation at Kincardine through distribution in Germany. It has completed an EU GMP inspection for finished-product and Cannabis 2.0 manufacturing at its Smiths Falls facility and expects certification during fiscal 2027. Mongeau said the approval would support an end-to-end supply chain for products intended for international markets.

Stewart said Canopy is targeting adjusted gross margin in the mid-30% range in the near term, potentially at a higher rate by the end of the fiscal year. Longer term, he said the company aims to approach margins closer to 50%, though he described that objective as further in the future.

Canopy ended June 30 with C$337 million in cash. Cash used in operating activities totaled C$25 million in the first quarter, though Stewart said that level was above the expected fiscal-year run rate because of working-capital increases and one-time transaction and restructuring costs that are expected to decline over the year.

Management said it expects modest capital expenditures to support cultivation investments, while maintaining that its existing operational assets are sufficient and that it does not anticipate greenfield facility construction.

About Canopy Growth (NASDAQ:CGC)Canopy Growth Corporation is a leading Canadian cannabis company engaged in the production, distribution and sale of both medical and recreational cannabis products. Headquartered in Smiths Falls, Ontario, the company cultivates a diversified portfolio of offerings that includes dried flower, pre-rolled joints, oils, softgel capsules and edibles. Canopy Growth also markets derivative products such as beverages and wellness formulations under a range of brands, aiming to serve both patient and adult-use markets.

The company operates through multiple subsidiaries, including Tweed Inc, Spectrum Therapeutics and Tokyo Smoke, each targeting distinct consumer segments.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Should You Invest $1,000 in Canopy Growth Right Now?Before you consider Canopy Growth, 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 Canopy Growth wasn't on the list.

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• Canopy Growth stock is surging to new heights today. Why are CGC shares rallying?

The Canadian cannabis company reported sales of $58.63 million (CA$ 81.2 million), beating the consensus of $58.52 million (CA$ 82.03 million). Revenues increased 13% year over year.

Medical Cannabis and Adult-Use Sales Drive Revenue GrowthCannabis net revenue was CA$65.1 million Canadian, up 14%.

Canada adult-use cannabis revenues jumped 10% to CA$29.7 million, driven by the MTL Cannabis deal, partially offset by declines in opportunistic bulk sales.

Storz & Bickel sales increased 6% to CA$16.1 million, attributable to prior-year product portfolio expansion and increasing sales across non-core markets.

Margins ImproveAdjusted gross margin increased to 31% in the quarter, compared to 25% a year ago.

Adjusted EBITDA loss was $CA 3.2 million, an improvement of CA$4.7 million, primarily attributable to revenue growth across both segments and continued cost savings, partially offset by the reduction in the VAC reimbursement rate available for medical cannabis.

CFO Expects Stronger Results In Second Half"The combination of top-line growth and disciplined cost management is enabling us to make steady progress on key profitability measures including gross margin and adjusted EBITDA.”

“As expected, the integration of MTL Cannabis is leading to increased supply of high-quality flower, expanded revenue opportunities and the realization of meaningful synergies. We anticipate further improvements in our financial results, especially in the second half of fiscal 2027, as the integration is completed," said CFO Tom Stewart.

CGC Stock Price Activity: Canopy Growth shares were up 5.99% at 98 cents at the time of publication Friday, according to Benzinga Pro data.

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Canopy Growth Corporation (“Canopy Growth”, “our”, “we” or the “Company”) (TSX: WEED) (Nasdaq: CGC), a leading global company committed to bette

For Canopy Growth (CGC -1.82%), as with most cannabis stocks, the next key catalyst has nothing to do with the industry or the economy. Instead, what will likely cause marijuana stocks to surge or sink from here has to do with an upcoming decision from the U.S. Drug Enforcement Administration (DEA).

This decision wouldn't resolve all of Canopy's regulatory headwinds, but since it could spark another round of bullishness, let's dive into the latest.

Image source: Getty Images.

The DEA, Schedule III, and what it could mean for Canopy Growth The DEA's efforts to reschedule marijuana to Schedule III have been months in the making, with hearings on the matter only taking place recently. Legal experts seem confident that these hearings will lead to a decision that bodes well for the cannabis industry, but it's unclear whether a final decision will finally arrive.

Still, given President Donald Trump's executive order issued last December, which called for reclassification to occur "in the most expeditious manner possible," a final decision could arrive far sooner. While it's not a solution for all regulatory hurdles, it would signal that Canopy is moving closer toward consolidating its U.S. affiliate, Canopy USA, into the parent company. Canopy USA itself would benefit by being no longer subject to the deduction limitations imposed by section 280E of the Internal Revenue Code.

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Buy now, or watch and wait? So, is it time to buy Canopy ahead of the Rescheduling decision, or to watch and wait? Based on past price performance, I would go with the latter. Remember that in April, following the last bit of DEA-related legalization news, Canopy and peers surged briefly, then sank back down.

The same thing could repeat itself if the U.S. Federal Government moves ahead with a broad rescheduling of cannabis. Investors could bid shares up on the headlines at first, then retreat upon reading the details. As the best approach entails holding cannabis stocks as a long-term wager on legalization, not a short-term binary bet, waiting for the next round of regulatory progress to take shape remains your best move.

SMITHS FALLS, Ontario--(BUSINESS WIRE)--Canopy Growth to report Q1 2027 financial results on August 7 with a conference call at 10:00am ET.

Canopy Growth Corporation (CGC - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this company have returned -1.2%, compared to the Zacks S&P 500 composite's +0.3% change. During this period, the Zacks Medical - Products industry, which Canopy Growth falls in, has gained 3.4%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

For the current quarter, Canopy Growth is expected to post a loss of $0.04 per share, indicating a change of +71.4% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The consensus earnings estimate of -$0.11 for the current fiscal year indicates a year-over-year change of +75.6%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $0.09 indicates a change of +18.2% from what Canopy Growth is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Canopy Growth.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

In the case of Canopy Growth, the consensus sales estimate of $58.52 million for the current quarter points to a year-over-year change of +12.3%. The $243.57 million and $266.23 million estimates for the current and next fiscal years indicate changes of +18.3% and +9.3%, respectively.

Last Reported Results and Surprise HistoryCanopy Growth reported revenues of $51.94 million in the last reported quarter, representing a year-over-year change of +14.7%. EPS of -$0.17 for the same period compares with -$0.94 a year ago.

Compared to the Zacks Consensus Estimate of $53.26 million, the reported revenues represent a surprise of -2.47%. The EPS surprise was -183.33%.

Over the last four quarters, Canopy Growth surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Canopy Growth is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Canopy Growth. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.