High Tide Inc. (HITI) Is a Trending Stock: Facts to Know Before Betting on It

Core Viewpoint - High Tide Inc. (HITI) has experienced a significant decline in stock performance recently, with a return of -9.4% over the past month, contrasting with the S&P 500's +2.7% and the Zacks Medical - Products industry's -0.8% [1] Earnings Estimate Revisions - The current quarter's earnings estimate for High Tide is a loss of $0.01 per share, reflecting a -200% change from the previous year, with a consensus estimate change of -100% over the last 30 days [4] - For the current fiscal year, the consensus earnings estimate is -$0.05, indicating a -25% change from the prior year, with no change in the estimate over the last 30 days [4] - The next fiscal year's consensus earnings estimate is $0.05, showing a +213.3% change from the previous year, although this estimate has decreased by -5.9% in the past month [5] Revenue Growth Forecast - High Tide's consensus sales estimate for the current quarter is $106.58 million, representing an +11% year-over-year change [10] - For the current fiscal year, the sales estimate is $416.27 million, indicating a +9.2% change, while the next fiscal year's estimate of $463.33 million reflects an +11.3% change [10] Last Reported Results and Surprise History - In the last reported quarter, High Tide generated revenues of $96.96 million, a +5.9% year-over-year increase, with an EPS of -$0.03 compared to $0 a year ago [11] - The reported revenues exceeded the Zacks Consensus Estimate of $96.73 million by +0.24%, while the EPS fell short by -50% [11] - Over the last four quarters, High Tide surpassed EPS estimates only once but exceeded revenue estimates each time [12] Valuation - High Tide is graded A on the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [16] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is fairly valued [14][15] Bottom Line - High Tide's Zacks Rank 2 suggests potential for outperforming the broader market in the near term, despite recent stock performance challenges [17]