|Bid||4.2400 x 4000|
|Ask||4.2500 x 4000|
|Day's Range||4.1350 - 4.3100|
|52 Week Range||1.9500 - 7.6000|
|Beta (5Y Monthly)||2.06|
|PE Ratio (TTM)||14.38|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
As a result of the COVID-19 pandemic, marijuana sales are skyrocketing as many people are turning to the product to deal with isolation, anxiety, and depression. Indeed, new market research compiled by Marijuana Business Factbook estimates medical and recreational cannabis sales are on track to grow by 40% this year over 2019, bringing total annual revenue to $15 billion by the end of 2020. Furthermore, the U.S. marijuana sector alone is estimated to be worth $37 billion by 2024 as more states join the legalization bandwagon.
Today, I'll look at two of the top pot stocks in the industry -- Aphria (NASDAQ: APHA) and Canopy Growth (NYSE: CGC) -- and assess which of these leading cannabis producers is the better stock to hold in your portfolio. One of the ways Aphria has established itself as one of the safer stocks in the industry is by being able to stay in the black on a relatively consistent basis. In its most recent quarterly results, which the company released on April 14, Aphria posted a net income of 5.7 million Canadian dollars on net revenue of CA$144.4 million.
A year from now, investors who buy shares of this bargain cannabis company will likely be rewarded for their courage.
Investing in marijuana stocks has been anything but smooth lately. The cannabis industry was no more immune to the novel coronavirus than the rest of the wider markets. However, that doesn't mean it's time to abandon pot stocks altogether.The story of 2020 is still unfinished, and there's comeback potential for a number of stocks in the cannabis sector.If anything, the price pressure has created some excellent buying opportunities. These 4 marijuana stocks to buy are particular standouts among the sector:InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Aphria (NASDAQ:APHA) * Hexo (NYSE:HEXO) * Cronos Group (NASDAQ:CRON) * Aurora Cannabis (NYSE:ACB)If you plant your seeds today, they just might bear fruit in the second half of 2020. So let's take a closer look at this premium selection of high-potential marijuana stocks. Marijuana Stocks to Buy: Aphria (APHA)Source: Shutterstock If you've been waiting for a compelling entry point in APHA stock, this is probably as good as any. A trailing 12-month price-to-earnings ratio of 14.65 suggests that the shares present a very fair value at present. And if the stock breaks through the $10 level, the sky's the limit.A major part of Aphria's turnaround story is the company's debt-reduction plan. Not long ago, Aphria entered into an agreement to repurchase around 127.5 million CAD worth of its senior debt notes.As the company explains, this transaction should improve Aphria's balance sheet. Potentially, the transaction could increase Aphria's net cash position to 163.8 million CAD. This should provide some comfort to embattled APHA stockholders as the much-needed cash can put Aphria in a more competitive position going forward. Hexo (HEXO)Source: Shutterstock Traders view HEXO as one of the most affordable pot stocks available on the market. And after the coronavirus outbreak, HEXO shares became not only affordable, but also cheap on a historical basis. But is there a reason to be optimistic now?The company's third fiscal quarter results would suggest that there's plenty of reason to be hopeful. Hexo reported quarterly sales of 9,338 kilograms of product as measured by adult-use cannabis gram and gram equivalents. That's a 42% improvement over the comparable sales reported during the company's second fiscal quarter.With this data, Hexo stated that "Newly launched products such as hash and oil extract drops also contributed to overall adult-use sales growth." Hopefully HEXO stock investors can count on the company to continue its product-line expansion as well as its upward trajectory in sales growth. Cronos Group (CRON)Source: Shutterstock A position in CRON stock is a great way to capitalize on the emergence of Cannabis 2.0. That's the nickname given to cannabis derivatives, which would include vaping products. And Cronos Group recently launched two brands in this genre, Spinach and COVE.As CEO Michael Ryan Gorenstein elaborates, "COVE, our premium brand, launched an elegant vaporizer pen, while the Spinach line was inspired by sought-after strain-specific terpene profiles." These are premium vaping products with high-quality components and rechargeable draw batteries.Besides, CRON stock sports an ultra-low trailing 12-month price-to-earnings ratio of just 2.41. This presents a rare chance to grab shares of a serious Cannabis 2.0 contender at a highly favorable price point. Aurora Cannabis (ACB)Source: Jarretera / Shutterstock.com Many traders would say that ACB is marijuana-stock royalty. It's one of the world's biggest cannabis companies and should be able to weather the Covid-19 storm better than Aurora's smaller competitors. Plus, the company recently earned nods of approval from a pair of prominent analysts.The first comes from Cantor Fitzgerald analyst Pablo Zuanic. He increased his price target on ACB stock from 27 CAD to 29 CAD. Zuanic also reiterated his "overweight" rating on the shares, citing Aurora's cost-cutting measures. For instance, the company announced 25% reduction in Aurora's corporate staff over a six-month period.Also, analysts at Stifel upgraded ACB stock from "sell" to "hold" recently. Noting Aurora's "market share gains" and the "stronger Canadian market trends," Stifel analysts raised their price target on the stock from 6.20 CAD to 17.50 CAD. With these upgrades in mind, Aurora's shareholders should remain confident in a stock-price rebound in the near future.As of this writing, David Moadel did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post 4 Marijuana Stocks to Buy Ahead of the Market Recovery appeared first on InvestorPlace.
Those who follow me know that I am long-term bullish on the cannabis space. But that does not mean I am bullish on every stock in the industry, like Tilray (NASDAQ:TLRY). While TLRY stock has done a great job bouncing off the 2020 lows, that alone does not mean it's a buy.Source: Jarretera / Shutterstock.com In fact, investors who have been long this name may consider the recent rise an opportunity to exit the stock. Similarly, they may consider the more recent pullback in the short term as a buying opportunity to buy other cannabis plays.In that regard, I am referencing stocks like Aphria (NASDAQ:APHA) or one of my favorites in Canopy Growth (NYSE:CGC).InvestorPlace - Stock Market News, Stock Advice & Trading Tips Tilray Stock Lacks on FundamentalsThe cannabis industry as a whole has been going through a difficult stretch. However, some stocks are better equipped than others to make it through to the other side.Take a look at Canopy Growth, which has a potent balance sheet and a more clear strategy for long-term success. It even has a potential acquirer in Constellation Brands (NYSE:STZ), which continues to exercise its rights to increase ownership. * 10 Consumer Stocks to Buy to Ride the Post-Covid-19 Wave In fact, when you think about those with the stronger balance sheets, they usually have a big-time, well-known company involved. Notice how Tilray doesn't lean on its balance sheet strength.While there is not an immediate concern that Tilray will be able to meet its short-term obligations, there is virtually no concern for Canopy Growth to meet its obligations.Tilray has current assets of $338.9 million vs. current liabilities of $171.3 million. The former is about twice the size of the latter. However, compare that to CGC, which has current assets at more than six times the size of its current liabilities. Is Growth Enough?For a regular company, Tilray's growth profile would be incredible. Analysts expect 42% revenue growth this year and an acceleration up to 55% growth in fiscal 2021.However, recall that Tilray used to have fantastic growth. Just last quarter the company reported 126% sales growth. In prior quarters, 200% to 300% growth was present. So to see growth estimates of just 42% is rather disappointing -- even as saying "just 42%" feels absurd.That's on top of the company continuing to lose money. Analysts expect Tilray stock to report a loss of $2.27 per share this year. While that would be better than the $3.20 per share it lost in FY 2019, it's not something to brag about.That's particularly true as free cash flow continues to trail in the red. Unfortunately, this figure is moving in the wrong direction. In fiscal 2017, Tilray had free cash outflow of $17.4 million. In 2018 that figure ballooned up to $100 million before more than tripling to a free cash outflow of $336.8 million in 2019.So is the growth enough? Not in my mind. Perhaps if cannabis becomes legal at the federal level, then these companies can start to really fly. But for now, the industry is struggling and I want to avoid its weakest players, like Tiray stock. Bottom Line on Tilray Click to EnlargeSource: Chart courtesy of StockCharts.com Surprisingly, Tilray stock has been trading in a tight range, spending the last two weeks between $8 and $9. But friends, remember this stock hit $300 at one point. While that move was mainly driven by a short squeeze, the fact that TLRY stock is down some 97% isn't a sign that there are a bevy of buyers looking to scoop up shares.The 100-day moving average continues to squeeze Tilray stock lower. It's currently riding uptrend support while struggling to hold the 50-day moving average.A close below $8 will be a very bearish development, potentially putting $6 or lower back on the table. Conversely, a close over the 100-day moving average is bullish. It would put the June high in play at $10.68, followed by the May high at $11.60.Either way, the fundamentals aren't bullish enough for me as the industry is in a period of struggle. Combined with muddy technicals (at best) and I will continue to avoid Tilray stock.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Continue Avoiding Tilray Stock as Charts, Fundamentals Lag appeared first on InvestorPlace.
In this article we will check out the progression of hedge fund sentiment towards Aphria Inc. (NYSE:APHA) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and 20 […]
Aphria Inc. ("Aphria") (TSX: APHA and NASDAQ: APHA), a leading global cannabis company, Emblem Cannabis Corporation ("Emblem"), and Aleafia Health Inc. (TSX: AH, OTC: ALEAF) ("Aleafia Health") today announced the parties entered into a settlement agreement on June 25, 2020 (the "Settlement Agreement") to resolve their outstanding dispute in respect of the termination of the parties' wholesale cannabis supply agreement (the "Supply Agreement").
Today, we'll look at which of the two leading companies in the marijuana sector, Aphria (NASDAQ: APHA) and Tilray (NASDAQ: TLRY), is a better buy right now. During the first quarter of 2020, Tilray recognized $52.1 million in revenue, a rise of 126% year over year. Although that growth is spectacular, the company is not profitable -- it recorded a net loss of $184 million, largely due to non-cash adjustments to the fair value of its warrants.
In most places, the marijuana industry was deemed essential amid widespread lockdowns -- which is why revenue is pouring in for the sector. Then, there are Cronos Group (NASDAQ: CRON) and Aphria (NASDAQ: APHA), which are focused on staying afloat with their strong balance sheets. Its work on producing cannabinoids more cheaply and efficiently through biosynthesis with its partner Ginkgo Bioworks is impressive.
It's been two weeks since Canopy Growth (NYSE:CGC) announced a staggering fourth-quarter loss of 1.3 billion Canadian dollars ($952.1 million). While you never want to lose money, owners of CGC stock might want to look at this as necessary medicine.Source: Shutterstock Like an alcoholic, if the company wanted to move ahead, it had to recognize a problem that existed with its business model. CEO David Klein was hired to right the ship, both from an operational and financial point of view. The long-time chief financial officer of its controlling shareholder, Constellation Brands (NYSE:STZ), hasn't wasted much time addressing the company's weaknesses. InvestorPlace - Stock Market News, Stock Advice & Trading Tips"I am excited to implement our strategy reset and organization redesign over the course of fiscal 2021. We have a renewed strategic focus and a clear change agenda that is already underway," Klein said in the company's May 29 earnings release. * The 9 Best Cryptocurrencies to Watch for the Rest of 2020"We are building what we believe is the best cannabis company in the world by putting the consumer at the heart of everything we do and are re-aligning our organization to be faster and more agile."You don't have to be a rocket scientist to know that Canopy tried to be too many things to too many people resulting in a company that had no North Star. In sports terms, Klein's goal is to simplify and shrink its playbook. I think he'll be successful. Here's why. Do What You Do BestIn the company's conference call for its fiscal Q4 2020, Klein discussed a lot of the issues that hurt Canopy Growth in the past fiscal year. He was very candid about its performance, both in terms of its troubles and successes. "Our Q4 performance was mixed," Klein said. "Our top line performance didn't meet our expectations, and we lost market share in the Canadian recreational market."Fortunately, the market share situation in Canada is still very much up for grabs. Not to mention, Canopy is moving its focus away from dried flowers to vapes, edibles, drinks, etc. Last October, I suggested that cannabis-infused drinks were one of seven reasons investors should buy CGC stock. Nine months later, my opinion hasn't changed one bit. "Fundamentally, you have to take your finite resources and focus them on the biggest slices of the pie, and execute," Klein said recently. "We're focused on Canada, Germany, the U.S., and getting our vapes, topicals and drinks right."As Klein suggested, Canopy lost market share in the Canadian recreational market. While he didn't say who grabbed it, value-priced products from Aphria (NYSE:APHA) and Aurora Cannabis (NYSE:ACB) are the likeliest suspects. The BCMI Report analyst and author Chris Dames discussed the issue recently:"First of all, they were late getting into the value market, but I don't think that was the focus of the company. Canopy does not have the cost structure to compete with the large, low-scale producers like Aurora and Aphria. The trend I see is Canopy becoming a more derivative, tech-oriented player, focused on vapes, edibles, drinks. But they're losing the battle in the dried flower segment of the market." Klein has decided that Canopy's not going to waste its time in markets that aren't going to be profitable for the company. You'll notice in its Q4 2020 press release that the company twice used the words "a path to profitability" in describing its corporate execution. If you own either CGC or STZ stock, you've got to be happy with this focus. Even Elon Musk realized Tesla (NASDAQ:TSLA) had to make money if it wanted to survive and thrive. Why go into business if you're not looking to profit from your efforts?Klein brought a dose of reality to the 4,000 or so employees that work in 15 markets around the world. "Canopy grew quickly to achieve a leading position in a rapidly-expanding industry and through that time period being first was clearly rewarded, but being first isn't a sustainable strategy or a point of differentiation," Klein said during the conference call. Anyone who is familiar with Michael Porter's arguments about strategy knows what Klein is suggesting. The Bottom Line for CGC StockIf you've followed Canopy Growth since its early days, you shouldn't be surprised by Klein's moves to change the company's strategy and make the company more competitive.Former co-CEO Bruce Linton was let go June 8 as executive chairman of Vireo Health International (OTCMKTS:VREOF). Clearly, Linton saw a different growth strategy than the rest of the board. They also probably wanted to avoid an out-of-control situation as the one Canopy experienced. Founders make great visionaries, but they often make poor CEOs. I'll be shocked if David Klein doesn't turn the company into a well-oiled machine. This strategy reset was badly overdue. Will Ashworth has written about investments full-time since 2008. Publications where he's appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * Top Stock Picker Reveals His Next 1,000% Winner * The 1 Stock All Retirees Must Own * Look What America's Richest Family Is Investing in Now The post Canopy Growthas Strategy Reset Shouldnat Be a Shock appeared first on InvestorPlace.