CRON - Cronos Group Inc.
20.60 +0.07 (0.34%)
After hours: 6:51PM EDT
| Previous Close | 19.23 |
| Open | 19.33 |
| Bid | 20.60 x 1000 |
| Ask | 20.67 x 1100 |
| Day's Range | 19.30 - 21.10 |
| 52 Week Range | 5.12 - 25.10 |
| Volume | 16,192,621 |
| Avg. Volume | 15,875,981 |
| Market Cap | 3.683B |
| Beta (3Y Monthly) | 4.28 |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | -0.03 |
| Earnings Date | N/A |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | N/A |
- Motley Fool•3 hours ago
Why Cronos Group, Avaya Holdings, and Eldorado Gold Jumped Today
These stocks overcame a mixed market. Find out how.
- Investing.com•5 hours ago
Day Ahead: Top 3 Things to Watch
Investing.com - Here’s a preview of the top 3 things that could rock markets tomorrow.
- TheStreet.com•6 hours ago
Cronos Group Certainly Qualifies for Mainstream Consideration
has long been a favorite Canadian cannabis stock of mine. Cronos Group will report the firm's fourth quarter financial results this Tuesday (tomorrow) prior to the opening bell. If the firm is to realize the revenue projection, this would illustrate year over year growth of 300% plus and double revenue quarter over quarter.
- Investor's Business Daily•7 hours ago
Dow Jones Recovers After 130-Point Drop; Marijuana Stocks Rally, Led By Cronos Group
Major stock indexes rallied off lows Monday. Marijuana stocks were in rally mode ahead of earnings from Cronos Group Tuesday before the open.
- Barrons.com•7 hours ago
The Great Marijuana Shortage Shows No Signs of Letting Up
A January survey by Cowen of retailers in five provinces found nearly half of all supply remained out of stock on e-commerce sites. Canopy is the No. 1 supplier on these sites, followed by Aurora, Tilray, and Cronos.
- InvestorPlace•10 hours ago
3 Things to Watch for Cronos Group Stock Ahead of Earnings
I can't think of a more exciting sector than legal marijuana. But like every industry, a fresh response is necessary following the honeymoon phase. For Cronos Group (NASDAQ:CRON), the company faces a critical earnings report for its fourth quarter. Although CRON stock has gained 70% this year, shares have traded flat since late January.Not only that, the company has incurred heavy volatility heading into fourth-quarter earnings. Further, significant movement in the options market suggests that traders anticipate a big move. Considering that technical momentum has dried up for nearly two months, and that analysts are skeptical of the sector's production capabilities, it's critical that CRON delivers the goods.On paper, the bar is set low. For earnings per share, covering analysts expect CRON stock to "break even" at 0 cents. Estimates range between a loss of a penny to a high of 1 cent. In Q4 2017, Cronos delivered EPS of a penny.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut the revenue picture is likely what most investors will focus on. Sales estimates range from $6.5 million to $6.6 million, with consensus averaging $6.5 million. If management hits this target, it would represent over a 300% lift year-over-year. That's an ambitious goal, but reaching it could do a lot of good for Cronos Group stock. * 7 Reasons Why Apple Streaming Won't Move the Needle for Apple Stock Of course, with such a dynamic industry, investors should be prepared for anything. Here are three key considerations for CRON stock ahead of its anticipated Q4 earnings release: Revenue Growth Remains a Strong Point for CRON StockAlthough aiming for a record-breaking $6.5 million sales haul in the upcoming quarter appears aggressive, it's actually quite reasonable. Going back to almost two years ago, Cronos has forwarded bonkers numbers. That's one of the reasons why CRON stock historically is such an outperformer. Click to Enlarge Since Q3 2017, Cronos revenue growth on a YOY basis averages 434%. Taking away this quarter's ridiculous 963% growth, we still have an average of just under 333%. Therefore, a 303% growth target for Q4 2018 is well within established trends.That said, legal marijuana understandably has viability and practicality concerns. If CRON fails to hit its revenue forecast, that could send a ripple effect into Cronos Group stock. Wall Street may perceive such a miss as an underlying sector problem that could also affect rivals like Tilray (NASDAQ:TLRY) and Canopy Growth (NYSE:CGC).Thus, Q4's revenue target presents a tricky situation. Yes, Cronos should reasonably attain this goal based on historical performance. But if it doesn't, the penalty will likely be severe. Inventory Concerns casts Cloud on CRON stockAmong the litany of criticisms against the cannabis industry, a common criticism is capacity. Several players have invested considerable funds acquiring marijuana production facilities. But analysts have voiced concerns that some of these buyouts don't make economic sense. For example, consider the hoopla surrounding Aurora Cannabis' (NYSE:ACB) acquisition of Whistler Medical Marijuana.This goes to show that capacity will always remain a highly-scrutinized metric. After all, a marijuana producer's viability is directly correlated to how much agricultural goods it can produce. However, another important and related figure to watch is inventory.When people talk capacity, they're talking about processed and packaged goods. It doesn't do Cronos Group stock any good if the underlying firm sits on an un-shippable supply glut. Looking at days inventory, though, management must reign this number in.It's not just the fact that the company reported over 748 days inventory in Q3 2018; this metric has risen uncomfortably high in recent quarters. * 5 Stocks To Buy for the Happiest Employees Again, management must trim this trend. If not, I'm not sure if a good narrative can save CRON stock in the nearer-term. What's CRON Doing with their Money?Last year, tobacco giant Altria Group (NYSE:MO) made headlines when it announced a $1.8 billion equity investment in CRON. Naturally, Cronos Group stock launched into orbit after the disclosure.But it wasn't just about the money. Instead, Altria gave Cronos and the entire marijuana industry a credibility boost. If a big company like Altria was willing to stick its neck out, it must recognize the sector's true potential.Specifically for CRON stock, Altria represented money growing on trees. With its massive partner's support, Cronos can embark on its expansionary ambitions.That's the good part. However, stakeholders don't want to listen to bedtime stories indefinitely. At some point, they want results. Inevitably, we have the obvious question: what's Cronos doing with the money?Boosting sales is one thing. However, shareholders also want efficient production, and eventually, a feasible roadmap to consistent profitability.Unfortunately, I'm not entirely convinced that CRON will give analysts what they're seeking in the nearer-term. Therefore, I'd take a cautious approach to Cronos Group stock heading into Q4.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dual-Class Stocks That Will Outperform * 7 Reasons Why Apple Streaming Won't Move the Needle for Apple Stock * 7 A-Rated Stocks to Buy in the Second Quarter Compare Brokers The post 3 Things to Watch for Cronos Group Stock Ahead of Earnings appeared first on InvestorPlace.
- Motley Fool•11 hours ago
Which Pot Stock -- Aurora, Canopy, Cronos, or Tilray -- Has the Most Upside?
According to Wall Street, the choice is pretty simple.
- TheStreet.com•yesterday
2 Big Earnings Reports I'll Be Watching This Week
has put together some big revenue growth through the past few years. Since the company has so much investment capital from the Altria deal, focus will be on sales potential and how they'll work with Altria, who has control of 45% of the stock.
- InvestorPlace•yesterday
Aphria Doesn’t Have A Big Partner Yet, But That’s Okay
In an environment that's already seen a great deal of partnering and acquisitions, it's interesting that one of the biggest cannabis producers has gone untouched, and perhaps largely unnoticed. That's Canada's Aphria (NYSE:APHA). Friday's market saw APHA stock close down more than 5%.Don't let the lack of M&A/JV interest deter you from owning Aphria stock. While the premise of teaming up with big-name partners seems like a step forward for cannabis suppliers that need to expand their distribution networks and product lines, in reality, those team-ups may or may not be the game-changers they're hoped to be. Flying solo -- at least for the time being -- may well be the smart move for Aphria here. No Partner YetAlcoholic beverage company Constellation Brands (NYSE:STZ) was the first to get the ball rolling, expanding its small investment in Canopy Growth (NYSE:CGC) to the $4 billion level last August, just ahead of Canada's legalization of recreational marijuana. Altria Group (NYSE:MO) made its own move in December, shelling out $1.8 billion for a 45% stake in Cronos Group (NASDAQ:CRON).InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn both cases the deals were more than mere investments. They were meant to set the stage for collaboration on new products, even without knowing what those products might be or where they may be sold. * 7 Beaten-Up Stocks to Buy as They Reverse Course Thus far, however, Aphria hasn't caught the eye of any legitimate suitors despite the fact that it's the world's third-biggest grower and boasts a licensed distribution network that spans Canada. It's also got rights to sell marijuana in parts of Europe, South America, Africa and Australia, readying it for rapid penetration of the international market when someone wants to make that happen.Source: New Frontier Data'Legitimate' is the operative word here. The much-smaller Green Growth Brands (OTCMKTS:GGBXF) is trying to orchestrate a hostile takeover, but so far few seem interested. Aphria's argument that the offer of 1.57 shares of GGB for every one share of Aphria stock is inadequate has held up.Still, what do Cronos and Canopy Growth have that Aphria doesn't? Not much. But, a lack of a high-profile partner may not entirely matter.Or, maybe Aphria's got an ace in the hole nobody fully realizes it's holding. Remaining PatientContrary to the message that cannabis M&A mania may be sending, the industry's bigger players don't necessarily need booze or cigarette giants to capture market share within the nascent industry.Brand names ranging from Broken Coast, Good Supply, RIFF and Goodfields are all part of the Aphria family, giving the company exposure to all price points and preferences within the recreational marijuana market. It's also entrenched in the cannabis oil and medical marijuana market.But it doesn't yet have a partner.It does want one, though. In November, then-CEO Vic Neufeld acknowledged "We are very desirous, if I could say that. We've had conversations with many entities and beverage is part of it." He went on to explain to BNN Bloomberg "When Aphria makes the ultimate decision to get into bed with a strategic partner, we want to make sure that they bring the brands that we can leverage together with who we are, what our vision is, and our science."Neufeld is now gone, replaced for the time being by interim CEO Irwin Simon. He's of the same mindset though, saying in early January before Neufeld stepped down that suitor Green Growth could become a strategic partner.No executive or insider is terribly stoked about being owned by Green Growth, however. * 10 Stocks on the Rise Heading Into the Second Quarter But, that's not to suggest the company won't find a big-brand partner just because one hasn't come knocking yet. Acting CEO and board chairman Irwin Simon? He's the former chief of food and beverage company Hain Celestial Group (NASDAQ:HAIN). He's got connections within the industry, when the time and opportunity are right. Bottom Line on Aphria StockIn some regards it would be interesting to see a cannabis company shrug off overtures and make a point of developing its own products and distribution channels, free of the influence that a beverage or cigarette outfit may exert.It's not an experiment to make with real capital, though. It's also not an experiment that's likely to take shape. Aphria doesn't have a big investor/partner yet, and Aphria stock has been a sub-par performer since merger-mania began.Holding out for the right deal, however, may actually be a stroke of brilliance rather than a red flag that could benefit APHA stock holders.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks That Will Continue to Rebound in 2019 * 5 Stocks To Buy for the Happiest Employees * 7 ETFs for a Millennial Portfolio Compare Brokers The post Aphria Doesn't Have A Big Partner Yet, But That's Okay appeared first on InvestorPlace.
- Motley Fool•yesterday
5 Ways Technology Can Transform the Marijuana Industry
The traditional cannabis industry is evolving before our eyes.
- InvestorPlace•2 days ago
Why You Should Sell Aurora Cannabis Stock Before It Reaches New Highs
Aurora Cannabis (NYSE:ACB) almost appears unstoppable. As a result, ACB stock has achieved highs not seen since before marijuana gained official legal status in Canada. Hemp legalization in the United States and the market's move higher have lifted both Aurora Cannabis and the stock of its peers.Source: Shutterstock However, this move higher has occurred despite Aurora making no moves into the U.S. hemp market. Moreover, ACB stock trades close to levels it saw before it started falling in October, portending a possible double top in the equity.Considering the stock price and other factors, investors should probably avoid Aurora Cannabis stock at these levels.InvestorPlace - Stock Market News, Stock Advice & Trading Tips A Rising Market, U.S. Hemp Has Reignited Cannabis StocksInvestors can find a lot to like about ACB stock. The company reported revenue growth of 387% in its last quarterly report. Moreover, its investments place it on track to become the largest producer in the industry by next year. * 10 Stocks on the Rise Heading Into the Second Quarter This may help explain why ACB stock has more than doubled from the $4.58 per share low the equity reached on Dec. 24. The overall market began a recovery at that time. Still, the U.S. government also signed a farm bill into law that granted legal status to hemp. Thus, Aurora and its peers not only gained access to the U.S. market, but they also benefit from a reignited boom in marijuana stocks.However, this boom is occurring south of the Canadian border in a country with nearly ten times the population. Moreover, reticence about cannabis remains in some parts of the U.S. Interestingly, this may help cannabis stocks as it will delay a potential "sell the news" event comparable to the stock swoon marijuana stocks saw following Canadian legalization.Now trading at just under $10 per share, it is now approaching the $12.52 per share high it achieved right before marijuana achieved full legal status across Canada. The Current ACB Stock Price Should Cause ConcernValuation offers little help when evaluating ACB stock. ACB trades at more than 80 times sales, and full-year profitability will not come until at least next year. However, that comes in lower than its largest peers: Canopy Growth (NYSE:CGC), Tilray (NASDAQ:TLRY) and Cronos Group (NASDAQ:CRON).However, ACB looks cheap only on a comparative basis. Also, high valuations could still influence ACB stock indirectly. So far, the stock has only traded above the $10 per share level for two weeks of its history. As the stock approaches its record high, investors could start to question the valuation. If I were to buy ACB, I would also want to know that the $12.52 level of last October is not a double top.Also, ACB's expansion outside of Canada appears perplexing. The company reported revenues of C$2.9 million ($2.17 million) outside of Canada. It has also expanded into 24 countries across five continents. However, even though it legally can, it has so far chosen not to follow its peers into the U.S. hemp market.Moreover, ACB has relied heavily on stock dilution to fund its expansion. With the company reporting losses and the stock trading at over 80 times sales, I can hardly blame the company for issuing stock to support its expansion. However, it reduces the incentive to pay high multiples. The Bottom Line on Aurora Cannabis StockAmid the recent rally, investors should probably avoid ACB stock at its current levels. Despite my view on ACB stock, Aurora continues to improve its market position. As a result of expansions, it may lead the industry in production by next year. Also, between massive revenue increases and the growth potential of the world cannabis market, one can understand why Aurora Cannabis stock trades at a premium. * 7 Retail Stocks That Will Continue to Rebound in 2019 However, ACB has spent very little of its history trading at or above current levels. To achieve significant growth, traders need to know that the equity is not forming a double top. Moreover, stock dilution has funded much of the company's expansion. This has likely hampered growth in ACB stock. Furthermore, it seems strange that Aurora Cannabis has not followed its peers into the U.S. hemp market. I expect the company to enter the U.S. at some point. Still, the fact that it will lag its peers in such a large market should concern investors.Given the moves to lead its peers in capacity and foreign expansion, I expect Aurora Cannabis to remain one of the more important companies in the industry for a long time to come. However, at current levels, I see more reasons for ACB stock to move down than up.As of this writing, Will Healy did not hold a position in any of the aforementioned securities. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post Why You Should Sell Aurora Cannabis Stock Before It Reaches New Highs appeared first on InvestorPlace.
- InvestorPlace•3 days ago
7 Marijuana Stocks to Play the CBD Trend
Cannabidiol (CBD) is emerging as a red-hot category of the marijuana industry. CBD includes compounds in the cannabis sativa plant that do not produce a high. In fact, over the years, CBDs have been shown to have powerful therapeutic effects.Now it looks like the U.S. market could open up in a big way for this type of cannabis and several CBD stocks are gaining traction. The reason: In December, Congress passed the 2018 Farm Bill, which declared that CBD would no longer be treated as an illegal substance.So how big could this opportunity be? Well, according to research from the Brightfield Group, the market in the U.S. could hit $22 billion by 2022.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Best ETFs to Buy in the Second Quarter No doubt, this could move the needle for marijuana stocks -- and here's a look at seven that stand out: Cronos Group (CRON)Cronos Group (NYSE:CRON) operates a vertically integrated cannabis platform, with a presence across five continents. In terms of the CBD opportunity, the company recently struck a strategic partnership with Gingko Bioworks, which has raised $430 million. The company's founder, Tom Knight, is known as the "father of synthetic biology" and his innovations -- such as with software to print DNA -- should allow for the creation of cannabinoids at a massive scale. This is critical because it can be difficult to produce pure forms that are cost-effective and precise.CRON also has the advantage of substantial financial resources to commercialize its cannabinoids. Last December, Altria (NYSE:MO) invested $1.8 billion into the company for a 45% stake. The deal is certainly a validation of CRON but it will also allow for much broader distribution and improved product development.Of course, a company like MO does engage in substantial due diligence before making an investment. In the latest earnings call, CEO Howard Willard said: "We believe the growth opportunities are significant and will extend across the globe as cannabis markets open. Selecting the right partner in this category was critical and we've done just that. Cronos strong management team has built unique capabilities to compete globally across the medicinal, recreational and nutraceutical categories." Aurora Cannabis (ACB)Aurora Cannabis (NYSE:ACB), a Canadian based cannabis producer, has been building up its CBD business. Part of this has been with its investments in industrial hemp production, such as with the Radient facility in Edmonton. It is expected to get as much as 10,000 kilos per day.Next, ACB has been focused on revving up its product offerings. According to the latest earnings call, Chief Corporate Officer Cam Battley, the company is poised "to launch a broad line of CBD based wellness product in the near future."What's more, ACB has been aggressive with its dealmaking. For example, it has increased its equity position in Hempco and purchased Agropro, which is Europe's largest hemp producer. * 10 Stocks on the Rise Heading Into the Second Quarter Something else to keep in mind: Legendary billionaire investor Nelson Peltz has joined the company as an advisor. This is certainly a major vote of confidence. He not only has deep access to investment capital but a strong network of potential partners, especially in the consumer goods industry. Some of his investments include stakes in PepsiCo (NASDAQ:PEP), Procter & Gamble (NYSE:PG) and Mondelez (NASDAQ:MDLZ). Charlotte's Web (CWBHF)The inspiration for the founding of Charlotte's Web (OTCMKTS:CWBHF) was a CNN documentary -- in 2013 -- about Charlotte Figi, whose health was significantly improved because of a hemp extract.Fast forward to today: The company is the No. 1 brand for the hemp-derived CBD market in the U.S. It definitely helps that it has distribution across more than 3,000 retail locations.And yes, growth has been strong. In the latest quarter, revenues jumped by 57% to $17.7 million and adjusted EBITDA came to $5.4 million, up 31%.To better capitalize on the CBD opportunity, CWBHF recently issued $71.5 million in stock. This will be for cultivation and production to meet surging demand. Here's what the company's CEO, Hess Moallem, had to say: "In general, broader consumer awareness of the benefits of cannabinoids, namely cannabidiol (CBD), and whole plant hemp extract is driving increased uptake in both our retail channels and within our e-commerce platform."In other words, it seems like a pretty good bet that the growth will continue for some time. Zynerba Pharmaceuticals (ZYNE)Zynerba Pharmaceuticals (NASDAQ:ZYNE) is a clinical-stage biotech company that develops cannabinoid therapies for a variety of rare diseases. They include: * Fragile X Syndrome (FXS): This is a developmental disability that has been known to cause autism spectrum disorder. FXS impacts 71,000 people in the U.S. and there are no drug indications for it. * Developmental and Epileptic Encephalopathies (DEE): This is an epilepsy syndrome that involves severe cognitive impairment. About 45,000 children and adolescents have this in the U.S. * Autism Spectrum Disorder (ASD): This includes autism and Asperger's syndrome. ASD affects less than 1 million pediatric and adolescent patients. * 7 Retail Stocks That Will Continue to Rebound in 2019 ZYNE's main candidate is Zygel, which is a CBD formulation gel for transdermal delivery. As for the FXS treatment, there is expected to be a pivotal data release in the second half of this year. And if the trial is positive, then the company will file a New Drug Application (NDA) for Zygel in the first half of 2020. Canopy Growth (CGC)Since 2016, Canopy Growth (NYSE:CGC) has been building its CBD business, with a focus on consumer packaged goods. The company has since created a vertically integrated platform for that includes a set of technologies that have pending patents. What's more, the hemp division is expected to yield 7,000 kilos of hemp-derived CBD on an annual basis. Granted, this cannot be used in the U.S. market. Yet CGC is likely to be a solid partner. For example, the company recently struck a deal with Martha Stewart's Sequential Brands Group, so as to develop CBD remedies for pets.It helps that CGC has substantial resources, which came from a mega $4 billion investment from Constellation Brands (NYSE:STZ). STZ has a strong global footprint -- with operations in the U.S., Mexico, New Zealand, Italy and Canada -- as well as a set of well-known consumer brands, such as Corona Extra, Corona Light, Modelo Especial, Modelo Negra and Pacifico. All in all, there is quite a bit of synergy for CGC.In the meantime, the company is growing at a staggering pace. In the latest quarter, revenues soared by 282% to $83 million. GW Pharmaceuticals (GWPH)The origins of GW Pharmaceuticals (NASDAQ:GWPH) go back to 1998. It was then that Dr. Geoffrey Guy and Dr. Brian Whittle co-founded the company to focus on developing therapies using cannabinoid formulations to target areas like epilepsy, glioma and schizophrenia.As of today, the lead product is a liquid formulation of a CBD, called Epidiolex, which received FDA approval in 2018 (the expectation is that there will be an approval in Europe in the second quarter). The drug targets the rare conditions of Lennox-Gastaut syndrome (LGS) or Dravet syndrome, which are variations of epilepsy. Furthermore, there are other indications for Epidiolex, such as Tuberous Sclerosis Complex and Rett Syndrome. * 7 ETFs for a Millennial Portfolio But of course, the company has other treatments. Note that GWPH is looking to get approval in the U.S. for Sativex, which is an oromucosal spray for multiple sclerosis. It is currently available in 25 countries. Horizons Marijuana Life Sciences ETF (HMLSF)If you do not want to buy individual CBD stocks, then you can consider an exchange-traded fund, such as the Horizons Marijuana Life Sciences ETF (OTCMKTS:HMLSF). With this, you'll get exposure to companies like Canopy Growth, Aurora, GW Pharamceuticals, HEXO and Tilray (NASDAQ:TLRY).In all, there are 59 stocks in the portfolio and the net assets are about $1 billion (in Canadian currency). The expense ratio is also 0.75%.Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks That Will Continue to Rebound in 2019 * 5 Stocks To Buy for the Happiest Employees * 7 ETFs for a Millennial Portfolio Compare Brokers The post 7 Marijuana Stocks to Play the CBD Trend appeared first on InvestorPlace.
- Zacks•3 days ago
US Marijuana Industry to Flourish in 2019: Who Gains?
Legalization has long been considered a boon for the marijuana industry.
- Motley Fool•3 days ago
Wall Street Expects These Pot Stocks to Drop by 22% to 44%
These red-hot marijuana stocks may now be too hot to handle.
- Barrons.com•4 days ago
Marijuana Is Legal in More Places and That’s Bad News for Alcohol Stocks
The ongoing wave of cannabis legalization is good for pot companies, but the trend could be a downer for alcohol stocks, warns DataTrek.
- InvestorPlace•4 days ago
3 Earnings Reports to Watch Next Week
Editor's note: InvestorPlace's Earnings Reports to Watch is updated weekly. Please check back next week for our latest earnings picks.The worry cited in this space over the past few weeks has been consistent. The earnings calendar has been tapering off since mid-February -- removing a catalyst that had moved stocks higher. Fourth-quarter earnings reports -- with some help from the final quarter of U.S. tax reform benefits -- were generally strong. Without that boost, however, the fear was that investors would focus on other factors, and with slowing global growth and worldwide political unrest, they might not like what they would see.For the most part, that fear has been unfounded. The S&P 500 is up double-digits year-to-date, and touched a five-month high on Thursday. All-time highs are just a few percentage points away. But Friday's selloff -- the index is off more than 1% in early trading -- shows that concerns still lurk. International growth remains weak. That puts an enormous amount of pressure on the U.S. consumer to keep the domestic economy -- and stock market -- humming.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAgain, one session doesn't make a trend. But with valuations creeping back up, investors might start again focusing on the risks in the market. The earnings calendar next week should give some signs as to whether that will be the case going forward. One of the hottest -- and highest-risk -- sectors gets a report from one of its key constituents. A high-priced consumer darling will try and keep its momentum going. And a housing leader will provide another gauge of sentiment in that critical industry. * 7 Beaten-Up Stocks to Buy as They Reverse Course The results from these three companies may not move the market. But the reaction to the results, for a number of reasons, could give some color as to how investors are feeling as they wait for the earnings calendar to ramp up next month. Cronos Group (CRON)Source: Shutterstock Earnings Report Date: Tuesday, March 26, before market open Marijuana stocks like Cronos Group (NASDAQ:CRON) have been among the biggest beneficiaries of the market rally this year. At the highs earlier this month, CRON stock had tripled since late November. A $1.8 billion investment in CRON stock by tobacco giant Altria (NYSE:MO) drove some of the enthusiasm. But the return of the 'risk-on' trade has boosted the entire sector, providing another tailwind.Of late, however, investors are viewing the space, and Cronos stock, with more caution. CRON stock has pulled back about 17%. Analysts are becoming more skeptical as well.Cronos earnings on Tuesday morning aren't likely to change the fundamental case here all that much. Like other marijuana players, Cronos remains an early-stage company. A 'beat' to earnings estimates doesn't in turn mean the valuation goes higher; results for a single quarter simple aren't that material, yet.But commentary will be closely watched. Most notably, what exactly does Cronos plan to do with the $1.8 billion in cash received from Altria? And even for investors with little or no exposure to cannabis, trading in CRON stock is worth monitoring. Are investors looking for any good news as an excuse to buy more? Or is the converse true: does CRON stock sell off simply because investors again need a reason to buy high-flying pot stocks? If marijuana sector investors again are focusing on risk, that would be a strong sign that the rest of the market might start doing the same. Lennar (LEN)Source: Shutterstock Earnings Report Date: Wednesday, March 27, before market open Housing plays like homebuilder Lennar (NYSE:LEN) started moving lower before the broad market last year. It wouldn't be shocking if history repeated itself in 2019. With input and labor costs moving higher, and demand for new housing appearing to slow, homebuilders and their suppliers remain at risk of getting squeezed.LEN stock has bounced 28% since hitting a multi-year low in late December. But with the stock trading at less than 8x forward EPS estimates, there's still room for upside -- if the company can continue restoring investor confidence. * 7 Retail Stocks That Will Continue to Rebound in 2019 The fiscal Q1 earnings report on Wednesday morning could help on that front -- to an extent. The first quarter is Lennar's slowest quarter, limiting its importance somewhat. Still, the full-year outlook -- particularly with interest rates coming down -- will be watched closely not only by LEN shareholders, but investors across the housing universe. Many stocks in the sector remain cheap; Lennar earnings could help show whether they should be. Lululemon Athletica (LULU)Source: Shutterstock Earnings Report Date: Wednesday, March 27, after market close It was only a few years ago that earnings reports from retailers were seen as proxies for the health of the U.S. consumer. If Macy's (NYSE:M) or JCPenney (NYSE:JCP) -- or looking back a bit further, Sears Holdings (NASDAQ:SHLDQ) -- were struggling, the most likely culprit was consumer confidence.Obviously, in the age of Amazon.com (NASDAQ:AMZN) and shrinking mall traffic, that's no longer the case. But earnings from Lululemon Athletica (NASDAQ:LULU) can been seen as a similar, albeit much less broad, indicator. Lululemon certainly has a much more narrow base in terms of both geography and its customer base. But if consumers still are willing to pay up for Lululemon merchandise, that suggests some level of confidence.The report also should give some color to the 'athleisure' fashion trend. Nike (NYSE:NKE) stock fell this week after slowing North American sales. A similar miss from Lululemon might suggest that athletic wear strength is fading. And that could echo across the sector, with investors in stocks like adidas AG (OTCMKTS:ADDYY) and Under Armour (NYSE:UA,UAA) watching closely.Here, too, the reaction to the report will be telling. Are investors willing to push higher a stock that already trades at 34x forward earnings? Particularly when that stock is in retail -- one of the most challenged sectors in the market?Again, none of these earnings reports can move the market. But there's a theme to watch here. If CRON sells off, if LEN numbers don't convince investors and if LULU can't rise higher, then the question ahead of earnings season becomes clear. What will it take for stocks to reclaim all-time highs? It's going to take strong corporate earnings -- but if next week's batch isn't enough, next month's might not be, either.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks That Will Continue to Rebound in 2019 * 5 Stocks To Buy for the Happiest Employees * 7 ETFs for a Millennial Portfolio Compare Brokers The post 3 Earnings Reports to Watch Next Week appeared first on InvestorPlace.
- InvestorPlace•4 days ago
There’s Smoke, But Is There Still Fire for ACB Stock?
Cannabis stocks are climbing this year and Aurora Cannabis (NYSE:ACB) is among the leaders of that pack. Shares of ACB stock have nearly doubled year-to-date and are in the midst of a breathtaking March rally of more than 33%.Source: Shutterstock Returns like those, particularly in the short time frames, might give investors reasonable pause about Aurora Cannabis stock, or any other stock for that matter. Indeed, the risk/reward proposition on ACB stock looks a lot different today than it did at the start or 2019. In terms of upside potential, Aurora Cannabis stock would need to rally another 28% to reclaim its 52-week high.That is not an impossible climb for ACB stock, but the near- to medium-term issue is finding upside catalysts because plenty of good news is already baked into this marijuana stock. For example, ACB surged earlier this month on news activist investor Nelson Peltz is joining the company as an advisor. That sent ACB stock to a double-digit intraday gain and the shares are up more than 11% since then.InvestorPlace - Stock Market News, Stock Advice & Trading Tips What Analysts Say About ACB StockSell-side analysts are not correct about any stock 100% of the time. Investors that acknowledge that can help mitigate disappointments. That said, some analysts are bullish on ACB stock. * 10 Stocks on the Rise Heading Into the Second Quarter Earlier this month, Cowen's Vivien Azer -- one of the most respected analysts tracking marijuana equities -- initiated coverage of Aurora Cannabis with an Outperform rating and a price target that works out to the equivalent of about $10.50 in U.S. dollars."While establishing 20% market share has been an early success story in Canadian adult use cannabis, the company is uniquely positioned to drive leadership in both share and profitability," Azer wrote in a note, according to Barron's.The analyst "believes that Aurora will deliver positive earnings before interest, taxes, depreciation and amortization by its fiscal fourth quarter in June, making it one of the first of its peers to reach this milestone," reports Barron's.Some analysts also view valuations on ACB stock as favorable relative to other marijuana names. Consider this about the valuations assigned to some weed equities: Aurora Cannabis stock trades at a forward P/E ratio of 101 and a price-to-book ratio of 3, according to Morningstar data, and that's considered a value relative to its peer group. Peltz PowerAs was noted above, news of the activist investor Peltz getting involved with Aurora Cannabis is priced into the shares, but that does not diminish the importance of this news going forward. One of the biggest drags on Aurora Cannabis stock has been the company's inability to form partnerships with more mainstream companies as some of its rivals have.Think Constellation Brands (NYSE:STZ) taking a multi-billion stake in Canopy Growth (NYSE:CGC) or Altria (NYSE:MO) forming a partnership with Cronos Group (NASDAQ:CRON). Last year, it was rumored that Coca-Cola Co. (NYSE:KO), the world's largest soft drink company, held talks with Aurora to develop cannabidiol-infused beverages, but a deal did not materialize.Peltz has long tradition of working with management teams -- particularly at large consumer staples companies -- to streamline operations and bolster efficiencies to enhance profitability.Aurora Chairman Michael Singer mentioned the beverage, cosmetics, health and wellness and pharmaceutical industries as potential growth areas for his companies and Peltz could help the upstart cannabis company make inroads into those arenas. * 5 Stocks To Buy for the Happiest Employees The Bottom Line on ACB StockAurora Cannabis definitely shows promise in the marijuana space, and Nelson Peltz only adds to the pot stocks' legitimacy. For now, however, all of the good news looks priced into ACB stock -- even if a valuation of 100x forward earnings is a steal in the cannabis area.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post There's Smoke, But Is There Still Fire for ACB Stock? appeared first on InvestorPlace.
- InvestorPlace•4 days ago
3 Medical Marijuana Stocks to Buy
[Editor's note: This story was previously published in February 2018. It has since been updated and republished.]Often, when analysts or bloggers talk up the potential of marijuana stocks, the focus is on the consumer side of the industry. But some of the best stocks in the pot sector may be medical marijuana stocks.Indeed, it's on the medical side where growth likely is to be largest in the near term. Canada did legalize recreational marijuana in October, but investors promptly sold the news in response. U.S. legalization is likely to be a long slog. Attitudes are mixed in Europe -- but even in legalized markets anywhere, black market (and untaxed) operators will be able to take share.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMeanwhile, approval of medical marijuana (in the U.S. and elsewhere) seems to be moving at a faster pace. In such a highly regulated market, black market and even smaller producers likely will be shut out. Quality and consistency will be key. Here, scale will matter. And those companies that win early have the best chance of becoming market leaders -- and providing big gains for investors. * 10 Stocks on the Rise Heading Into the Second Quarter As always -- and particularly in this space -- investors need to mind the risks and size positions accordingly. But for investors who see medical marijuana stocks as the next big thing, these three are the best stocks for investors enamored with weed.Source: Shutterstock Charlotte's Web (CWBHF)Charlotte's Web (OTCMKTS:CWBHF) has become one of the leading players in CBD oil (cannabidiol). And though Charlotte's Web products are made from hemp -- at least for now -- instead of marijuana, the stock still looks like one of the best plays in the sector.InvestorPlace's Matt McCall named CWBHF (the stock also trades on the Canadian Securities Exchange, ticker CWEB) as his pick of the best stocks for 2019. And the case makes some sense. CBD oil sales are soaring and Charlotte's Web is a market leader. As McCall pointed out, the federal farm bill in the U.S. provided a catalyst by legalizing hemp.With so many customers yet to try CBD oil -- and so many existing users attached -- market growth should be huge. And while CWBHF isn't cheap from a valuation standpoint, its position as a market leader should allow it to grow into its valuation.Source: Shutterstock Cronos (CRON)Of late, marijuana producer Cronos Group (NASDAQ:CRON) has made the headlines for its consumer business. Most recently, tobacco giant Altria (NYSE:MO) invested some $1.8 billion in the company. The combination of Altria's advertising and distribution reach and Cronos' production capabilities would seem best fit for the consumer side of the business.But investors can't ignore that Cronos is a medical marijuana stock as well. In fact, it's that business that drives the majority of revenue at the moment. And it also has given the company a beachhead in multiple markets around the world, from its home market of Canada to Germany, Israel and Poland. * 5 Cloud Stocks to Help Your Portfolio Fly I wrote after the Altria deal that investors should stay patient with CRON stock. And in this market, that might still be wise advice. But with the stock seemingly having stabilized at around $20 it looks as if this stock is for real.Source: Shutterstock CannTrust (CTST)CannTrust (NYSE:CTST) has been one of the biggest victims of the post-legalization selloff. The stock lost more than half its value and touched a 52-week low in the process last year. Since it's December fall, it has more than doubles and remains on the uptrend.Unlike many peers, the company is profitable. And its established leadership in the Canadian medical marijuana industry should drive consistent growth and allow CannTrust to stay profitable. There is some retail exposure here as well, but unlike peers, CannTrust seems to have room to drive upside on the medical side alone.CannTrust also was able to get a listing on the New York Stock Exchange this year. Admittedly, uplisting hasn't helped pot stocks in and of itself (most notably Aurora Cannabis (NYSE:ACB) took a lot longer to take off than was expected), but it certainly didn't hurt.From a profitability standpoint, at least, CNNTF seems like one of the best stocks in the pot sector. And with valuation near the lows, at least some of the risks here likely are priced in.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 of the Best Stocks to Buy for a Dovish Federal Reserve * 5 Best Fidelity ETFs for Retirement Savers * 7 Blue-Chip Stocks That Could Lead the Market Higher Compare Brokers The post 3 Medical Marijuana Stocks to Buy appeared first on InvestorPlace.
- Motley Fool•4 days ago
Will Cronos Group Earnings Get an Altria Bump?
With the cigarette giant's investment in the cannabis company complete, it's up to Cronos to perform.
Motley Fool•5 days agoThese Marijuana Stocks Have Doubled So Far in 2019
Find out if further gains are around the corner.
- InvestorPlace•5 days ago
Did You Miss Your Chance to Buy Aurora Cannabis Stock?
Shares of Aurora Cannabis (NYSE:ACB) have been soaring lately, up 25% in just a few trading sessions. Because of this giant move, investors are wondering if now's the time to get in on ACB stock or if a 25% rally means they missed their chance.Source: Shutterstock What's the verdict?I wouldn't say there's no upside left, but the risk-reward profile has certainly muddied. Unfortunately, investors who are suffering a case of FOMO -- a "fear of missing out" -- have no reason to be. There was ample time to buy this name, even after the big rally.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLet's look at the charts to see why. Trading ACB Stock Click to Enlarge There are so many choices in the investing world that I do not like to be a "told you so" person. Meaning that even studious followers of the stock market can't act on everything they see and read. In the case of ACB stock, though, perhaps investors can extract a lesson. * 7 Video Game Stocks on Steep Discount Notice how the stock gapped higher by about $1 per share last week, closing near $9 after previously closing near $8. Many would argue that this ~12.5% gain was simply too much of a rally and they'd have to move on to something else. I needed to see how ACB stock would trade over the next few days, too, as I don't want to chase a double-digit move.The next day ACB stock put in an "inside day." That's where a stock's daily range trades within the range of the prior day. Notice on the chart above how the second candle following the big gap-up candle is within its range? After a big rally like this, that's a great consolidation pattern that bulls want to see. It shows that longs aren't winning to sell and shorts don't have enough "oomph" to drive it down.The next day, ACB stock began what looked like another inside day, before rocketing higher. In other words, this price action allowed investors to hop on before an 11% move higher.So what now?Shares of Aurora Cannabis stock are stretching into overbought territory. However, that does not mean it cannot continue higher. I wouldn't mind seeing how ACB stock does over the next few sessions and if we get a slight pullback before moving higher again.Keep in mind, ACB stock has breached $12 more than once in the past 12 months. Perhaps it's on its way of doing it a third time. Valuing Aurora Cannabis StockSo what got Aurora Cannabis stock rallying so strongly anyway? The company brought activist investor Nelson Peltz on board to advise on partnerships and global expansion.They didn't pick a bad advisor, either. Peltz has a long list of contacts and the hedge fund manager is a master in the consumer packaged goods space. Whether this leads to a partnership with a well-known blue-chip company or not remains to be seen. But adding him in this role certainly doesn't hurt Aurora's chances.That said, we're still very much in the "land grab" phase of the cannabis market. While growth is impressive -- as ACB stock grew sales 339% year-over-year last quarter -- the valuations do not support these names. For instance, while revenues more than quadrupled last quarter, sales came up just short of $39 million. With a $10 billion valuation, that growth better continue for some time in order for it to be justified.But if there wasn't an opportunity here, we wouldn't have Constellation Brands (NYSE:STZ) taking a multi-billion stake in Canopy Growth (NYSE:CGC) or Altria (NYSE:MO) doing the same thing with Cronos Group (NASDAQ:CRON). There's money to be made and an opportunity to be had with states and countries legalizing marijuana, both for medical and recreational use.That said, it's not a short-term or risk-free endeavor for investors.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long CGC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Invincible Stocks Leading The Bull Market Higher * 5 Dow Jones Stocks Coming to Life * 7 of the Best High-Yield Funds for 2019 and Beyond Compare Brokers The post Did You Miss Your Chance to Buy Aurora Cannabis Stock? appeared first on InvestorPlace.
- Zacks•5 days ago
Options Traders Expect Huge Moves in Cronos (CRON) Stock
Investors need to pay close attention to Cronos (CRON) stock based on the movements in the options market lately.
- MoneyShow•6 days ago
Cronos- A Compelling Small Cap Cannabis Play
Cronos Group (CRON) was the first Canadian marijuana stock to gain listing on the Nasdaq (others have followed in its footsteps), notes Tyler Laundon, editor of Cabot Small Cap Confidential.
- InvestorPlace•6 days ago
Who’s Made The Right Call On Cronos Group Stock? Altria or Analysts?
So far, 2019 has been good to Cronos Group (NASDAQ:CRON). Its share price has more than doubled this year. And the CRON stock gains make some sense.Indeed, as I wrote in December, the $1.8 billion investment in CRON stock by Altria (NYSE:MO) seems to be a game-changer. Among cannabis stocks, only Canopy Growth (NYSE:CGC), with $4 billion in hand from its deal with Constellation Brands (NYSE:STZ), looked to be in a stronger financial position. And yet, amid a market sell-off, investors largely shrugged at Cronos Group stock.That's changed in 2019, obviously, and perhaps it's changed a little too much. I still believe CRON stock needs to settle down. And I'm not alone. Wall Street has turned notably bearish on the shares in recent weeks. Ahead of Cronos Group earnings next week, those analysts might have a point.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cautious Turn on CRON StockAs MarketWatch pointed out last week, the Street on the whole actually sees downside ahead for CRON shares. Some 11 analysts on average have a target price of $20.30, or 6.6% below current levels.And recent coverage hasn't been all that positive. Per MarketWatch, BMO Capital Markets downgraded CRON to underperform. Analyst Tamy Chen pointed out that CRON trades at 80x EBITDA estimates -- two times the multiple sported by Aurora Cannabis (NYSE:ACB) and higher than Canopy Growth.Chen isn't alone. GMP Securities cut Cronos to hold earlier this month. Cowen (NASDAQ:COWN) initiated at neutral. Jefferies Financial Group (NYSE:JEF) began its coverage of Cronos Group stock with an underperform in late February (though CRON stock rose anyway). * Top 7 Service Sector Stocks That Will Pay You to Own Them To be sure, the Street isn't as always right. And even bearish analysts -- including the team at Jefferies -- have pointed to a massive opportunity in both recreational and medicinal cannabis.But for investors looking for the best cannabis play, it's worth noting that the analysts aren't just focused on valuation. BMO has pointed out that Cronos is trailing other Canadian producers in building out capacity. According to Yahoo! Finance, Jefferies cited concerns about when, exactly, Cronos would spend the funds from Altria -- and how much support the tobacco giant would give the pot producer in the early going.While it's easy to dismiss analyst concerns -- and, again, it's far from guaranteed that the Street is correct -- the factors driving the downgrades should be given some consideration. This isn't a case of analysts simply hollering about near-term valuation metrics, or arguing that cannabis stocks represent some sort of bubble.The common thread in recent coverage isn't that Cronos Group is failing or that it has no opportunity. Rather, the worry is that the company isn't moving fast enough in an industry where being a first mover increasingly looks like a key advantage. Earnings and Cronos Group StockIt's not just analysts who are making that point. InvestorPlace contributor Luke Lango made the case last month that Canopy Growth, not Cronos, was the best play in cannabis. One reason: CGC stock is actually cheaper on a per-kilogram basis.That can change if Cronos ramps production and puts its Altria funds to work. So far, however, that hasn't quite been the case. In fact, the company earlier this month swapped its shares of privately held Whistler Medical Marijuana for shares in Aurora Cannabis. That deal highlights the difference between the two companies. * 15 Stocks That May Be Hurt by This Year's Big IPOs Aurora's strategy clearly is to take as many shots at as many opportunities as possible in the shortest amount of time. With that strategy, it's possible that Aurora is taking on too many projects. But in a fluid market (from both a competitive and regulatory perspective), and one with multiple products (recreational, medical, CBD, edibles, etc.), Aurora is trying to gain exposure to as many markets as possible.Cronos doesn't have to take the same path as Aurora. But with the stock near the highs -- and triple late November levels -- it's going to need to show something with earnings next week. That may be discussion of what exactly it plans to do with its $1.8 billion in newly received cash. It may be clarity on Altria's role. (Note that Altria's senior director of corporate strategy is joining Cronos as chief financial officer, perhaps a step in the right direction.) It may be talk of additional M&A, after a huge win on the Whistler deal. (Cronos appears to have invested CAD$4 million [$3 million] in the company - and received C$175 million in Aurora stock.)Whatever it is, with the highest valuation in the cannabis stock, the status quo isn't enough. Cronos needs to post an impressive earnings report next week -- and not just in the numbers. Rather, the company needs to convince investors that it can take advantage of its cash, and put that cash to work to drive growth. It won't be easy - and at these prices, expectations are going to be high.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Financial Stocks to Invest In Today * 7 Single-Digit P/E Stocks With Massive Upside * 5 Chip Stocks on the Rise Compare Brokers The post Who's Made The Right Call On Cronos Group Stock? Altria or Analysts? appeared first on InvestorPlace.
- Zacks•6 days ago
Cronos Group (CRON) Dips More Than Broader Markets: What You Should Know
Cronos Group (CRON) closed at $21.48 in the latest trading session, marking a -0.97% move from the prior day.
