154.17 0.00 (0.00%)
After hours: 4:47PM EDT
|Bid||154.23 x 1000|
|Ask||154.00 x 1200|
|Day's Range||153.75 - 156.99|
|52 Week Range||90.14 - 196.00|
|Beta (3Y Monthly)||2.03|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 1, 2019 - Oct 5, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||227.31|
Last week, GW Pharmaceuticals (NASDAQ: GWPH) released its financial results for the second quarter, and the results surprised analysts and investors alike. Year-over-year, the company's revenue for the quarter rose from $3.3 million to $72 million, an increase of 20.8x. Most of that revenue came from sales of the company's flagship drug, cannabidiol (CBD)-derived Epidiolex, which reached $68.4 million for the quarter and $101.9 million for the first half of the year, destroying even the most bullish of industry predictions.
GW Pharmaceuticals, NetApp, KB Home, PulteGroup, M/I Homes, Lennar and Toll Brothers highlighted as Zacks Bull and Bear of the Day
HubSpot, Kraft Heinz, CNBS, Canopy Growth, Aurora Cannabis and GW Pharmaceuticals highlighted as Zacks Bull and Bear of the Day
From global marijuana legalization to the rapidly increasing use of CBD as a wellness product, all of this should help Tilray witness an uptick in second-quarter revenues.
Quarterly results, more quarterly results, a new buyout and a potentially new Nasdaq marijuana stock -- last week was far from boring in the cannabis industry.
TerrAscend is a portfolio company of Canopy Rivers Inc (OTC: CNPOF), the investment arm of Canopy Growth Corp (NYSE: CGC). Arcadia Biosciences (NASDAQ: RKDA) announced a hemp products joint venture, Archipelago Ventures, involving Shane Victorino, a former MLB player and son of Maui Mayor Mike Victorino.
GW Pharmaceuticals PLC reported Tuesday afternoon that sales of its cannabis-derived epilepsy drug more than doubled from the previous quarter, sending shares spiking more than 11% higher in after-hours trading.
CEO Justin Gover told Cramer during an interview on "Mad Money" he agrees with Cramer's assessment of GW Pharmaceuticals — and all he can do is continue focusing on the company's core medicine and pipeline.
The good news for GW Pharmaceuticals (GWPH) was it generated a profit in its latest reporting period. The bad news is it was the result of a $104.1 million one-off sale of its Rare Pediatric Priority Review Voucher in the quarter. The better news is its core product Epidiolex significantly exceeded sales expectations, and should retain growth trajectory going forward.In this article we'll look at six reasons GW Pharmaceuticals should continue to find support, even though it's certain it'll have a loss in its next reporting period; albeit the losses should continue to narrow. It's probably not too long before the company starts to produce a sustainable profit.Positive Catalysts for EpidiolexThe first three of the six reasons to like GW Pharmaceuticals in the future are associated with its flagship product Epidiolex, which accounted all but $3.6 million in revenue for the quarter.First, sales of Epidiolex wildly exceeded expectations, as it had net sales of $68.4 million in the second quarter, far above the $47 million analysts on average were looking for. Total company sales in the quarter came in at $72 million.Next, health care prescribing by health care providers has been increasing, with over 12,000 patients now having used the treatment since it launched in 2018. At this time over 2,500 physicians have prescribed Epidiolex, with the vast majority of them continuing using the therapy, according to Chief Executive Justin Glover.Last, private and public payers don't appear to have any qualms about covering Epidiolex, with approximately 93 percent of them covering it in the U.S. market.That suggests sustainable performance in the quarters ahead, although the pace of that growth may not be what it was in the last quarter.Probable New Treatments for EpidiolexI put this 4th reason to like GW Pharma into a separate category because it points to future potential and not the existing use of Epidiolex. It's highly probable that the company will gain approval for using the drug in Europe, but that has yet to be confirmed.GW Pharmaceuticals is awaiting the approval of the EU for using Epidiolex to treat Lennox-Gastaut syndrome (LGS) and Dravet syndrome in the early part of October.It would be surprising if the company didn't receive approval, and its fairly safe to at least this will be another revenue stream for the company.Assuming approval, it would launch first in the two largest European markets, Germany in France, with the goal of doing so some time in the fourth quarter. After that it'll launch in Italy and Spain in 2020.More speculative is its research on how Epidiolex may be effective on treating Rett syndrome. It has plans to launch a clinical study to determine if Sativex can be used to treat spasticity in multiple sclerosis patients. The goal there is to obtain approval to use the treatment in the U.S.Finally, it has started to look at recruiting participants in a study that will determine if cannabidivarin can effectively treat autism.Most important here is GW Pharmaceuticals is working on building out a pipeline that would generate meaningful long-term growth for the company, if a number of them are cleared to treat patients. This would significantly increase it patient base, revenue and earnings.Solid Balance Sheet and Cash PositionInvestors should understand that even with all the positive sentiment surrounding GW Pharmaceuticals, it's still going to burn through a lot of cash as it ramps up research and expands to other markets.In the near future it's not going to have another one-time sale of an asset to offset the spending in its earnings results.That could be extremely detrimental to a number of weaker cannabis companies, but GW Pharma has under $30 million in long-term liabilities at this time, and a lot of cash on hand to keep the company from having to issue equity to raise capital, which would dilute existing shareholders' shares.At the end of the reporting period GW had cash and cash equivalents of $583.7 million. That's only about $8 million less than it had at the end of calendar year 2018.The company should obtain some approvals in the near future, and that will generate more revenue and earnings to bolster its balance sheet. It won't immediately catch up with spending, but it does show a path to profitability that it can obtain with probably little need to increase its share count.So the fifth thing to like about GW is it has a strong balance sheet and cash on hand to spend on research and growth without diluting its shares.Analysts Still Bullish on the CompanyThe sixth reason to like GW in the future is it still attracts a lot of bullish sentiment from analysts.Both Oppenheimer and Stifel Nicolaus raised their price targets on GW, with Bank of America/Merrill Lynch retaining its 'buy' rating on the stock.Oppenheimer raised its one-year price target from $234 to $239, and Stifel Nicolaus boosted its one-year price target from $227 to $228.Overall, TipRanks reveals that GWPH has a Strong Buy analyst consensus rating with 5 back-to-back 'buy' ratings in the last three months. Meanwhile the average analyst price target of $221.80 suggests the stock has upside potential of just over 30% from the current share price for the next 12 months. (See GWPH's price targets and analyst ratings on TipRanks)Although I don't make my long-term investment decisions on the outlook and estimates of analysts, many investors do, and in the case of boosting their bullish case for a stock, usually provides a higher floor and ceiling.Combined with the other positive catalysts above, it should provide further upward trajectory for the share price of the stock, assuming GW doesn't drop the ball in some way.ConclusionThere is a lot to like about GW Pharmaceuticals, especially the future potential of Epidiolex and other potential treatments in its pipeline, which will without a doubt generate significant revenue if they're approved, And as mentioned above, some of the less speculative are close to certain to being approved in the EU, which will open up another revenue stream.With the overall health complex in the U.S. having a positive response to Epidiolex at various touch points, this is going to be an ongoing growth engine for GW; investors will probably need to lower expectations on future growth trajectory, even though the company surprised so strongly on the revenue side in the latest quarter.I don't believe it has reached an incremental growth stage yet, but eventually it will. By that time it should have other markets to sell into, partially offsetting the slowing sales trajectory in the U.S. in the future. That time isn't here yet, but it's not a long way off. It could happen within a year in the U.S. market.The pace and timing will be determined on how consumers think concerning moving away from competitive drugs into the perceived safety of Epidiolex. If it gains more U.S. market share, its growth trajectory could last longer than I'm expecting as the company stands today.With a strong balance sheet and cash position, along with the potential to grow out its product pipeline in new markets and treatments, the long-term future of GW Pharmaceuticals looks very profitable for those in it for the long haul.GW Pharmaceuticals boasts an 8 score from TipRanks Smart Score. That’s thanks to a combination of bullish datapoints, including a ‘Strong Buy’ consensus from the Street, bullish blogger opinions, and even positive sentiment from investors. (More details here)
In his second "Executive Decision" segment of Mad Money Wednesday night, Jim Cramer spoke with Justin Gover, CEO of GW Pharmaceuticals plc , the medical cannabis provider with shares that soared 9.1% Wednesday after the company posted earnings of 21 cents a share, when analysts were expecting it to only break even. Gover said that over the past six months, more than 12,000 patients have received prescriptions for Epidiolex, GWPH's anti-seizure medication. Gover said there is still much education to be done with physicians, letting them know what Epidiolex is and how it works for their patients suffering with seizures.
Morgan Stanley analyst David Lebowitz maintained an Overweight rating on GW Pharma and increased the price target from $234 to $238. GW Pharma's CBD epilepsy medication Epidiolex saw strong sales of $68 million in its second full quarter on the U.S. market compared to the consensus estimate of $45 million, with 12,000 patients having received the therapy and a majority of them staying with the medication, Lebowitz said in a Wednesday note.
[Editor's note: This story was previously published in April 2019. It has since been updated and republished.]Slow and steady wins the race, as the old adage goes. But slow and steady can be a bit boring. Investors looking for stocks to buy, as a rule, should focus on high-quality, and preferably, lower-risk issues.Still, there's room in any investor's portfolio for higher-risk, higher-reward plays -- as long as those risks are understood.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn that vein, here are 10 stocks to buy that offer potentially significant rewards … and almost as much risk. None of these stocks should be a core part of a portfolio, and all have the potential to blow up in your face. * 10 Stocks to Buy on the Trade War Dip But taking those risks also creates the possibility of a major reward. It's likely at least a few of these stocks will wind up big winners going forward. Teva Pharmaceutical (TEVA)Teva Pharmaceutical (NYSE:TEVA) isn't having a great year, down more than 57%.Teva has too much debt and too little growth. Its key drug, Copaxone, which treats multiple sclerosis, is facing generic competition from Mylan (NASDAQ:MYL), among others.Bankruptcy likely isn't a near-term scenario but the current trajectory suggests it could occur down the line. In short, TEVA is a classic contrarian, "buy when there's blood in the streets" type of play. And there are reasons TEVA is one of these great (if risky) stocks to buy.While pressure has persisted on generic drugs, but it won't last forever.The company has sold assets to clean up its balance sheet, which has de-risked the story somewhat. In my opinion, Teva is a better version of Valeant, but with an easier path back to normalcy.It's a risky path, but if it works TEVA could gain another 20%-plus simply by reaching a higher multiple and removing bankruptcy fears. Scientific Games Corp (SGMS)The story already has played out somewhat at Scientific Games (NASDAQ:SGMS), which is up 14.23% so far this year. But the growth story isn't necessarily over.Source: Shutterstock Only a few years ago, Scientific Games was a sleepy, low-growth provider of lottery tickets and terminals. But that changed in quick succession.SciGames acquired slot machine manufacturers WMS Industries and Bally Technologies, the latter coming only months after Bally bought equipment maker and gaming table designer Shuffle Master. Scientific Games became the dominant supplier to the casino industry worldwide: a "one-stop shop" for casino floors.It also became one of the most indebted companies in the U.S. markets and still is. The combination of that debt and careful cost controls at casinos, particularly in the U.S., kept SGMS stock below $20 to start the year. * 10 Cyclical Stocks to Buy (or Sell) Now But it now looks like the long-awaited "replacement cycle" of slot machines is arriving and that could be hugely beneficial for Scientific Games and its smaller, similar rival Everi Holdings Inc (NYSE:EVRI). And considering how much leverage is still on the balance sheet, there's a case for SGMS to clear $100 -- yes, $100 -- if profit growth accelerates.That's not a guarantee, obviously, but it's the nature of highly indebted companies. Leverage is a weight when those companies struggle, and it's a springboard when they grow. Chesapeake Energy (CHK)In the case of Chesapeake Energy Corporation (NYSE:CHK), leverage has been a weight. After optimism about stable energy prices and Chesapeake's improved balance sheet boosted CHK stock in 2017, it was nothing but downhill in 2018.Source: Shutterstock CHK now trades down more than 68% since the beginning of the year and just bounced off multi-year lows.I think CHK is the best, if riskiest, of the stocks to buy on higher energy prices.It's also worth pointing out that Chesapeake bonds actually have been rather stable so far this year. Efficiency improvements at the wellhead have lowered costs as well.Chesapeake is a risky play, but the combination of debt on the balance sheet and leverage from higher energy prices mean that with a couple of changes, CHK could soar. Splunk (SPLK)Splunk (NASDAQ:SPLK), on the other hand, isn't the cheapest stock in its space or anywhere else. The high-flying "operational intelligence" software provider trades up nearly 30% since the beginning of the year alone.Source: Web Summit Via FlickrThe valuation alone shows the risk in SPLK, which has pulled back from brief early-2014 highs above $100. But since that pullback, SPLK stock actually has been rather stable, as investors give the company time to grow into its valuation.Meanwhile, Splunk continues to be a likely acquisition target, with Cisco (NASDAQ:CSCO) cited as a potential buyer in June and International Business Machines (NYSE:IBM) long thought to be a logical acquirer. * 10 Generation Z Stocks to Buy Long Splunk is a classic growth stock in that it, too, is high-risk and high-reward. But it looks like one of the better growth stocks to buy in what might be an over-aggressive market at the moment. Ship Finance International (SFL)The shipping space generally has been a "Bermuda Triangle" for investor capital, but Ship Finance International (NYSE:SFL) might be the exception to the rule.Source: Shutterstock There's likely to be some near-term volatility and Ship Finance's dividend, which currently yields 11%, could be at risk, but it's still one of those great stocks to buy if you can handle the risk.But this also remains one of the best plays in shipping, available for a modest premium to book value and at low-teens multiple to earnings. The industry alone, and a heavily leveraged balance sheet, both show the risk.But if Ship Finance can make it through some choppy waters over the next few months, there's likely a nice return for shareholders on the other side. GW Pharmaceuticals (GWPH)There's no sector of the market more boom-and-bust than biotech and drug development. GW Pharmaceuticals (NASDAQ:GWPH) doubles down on that volatility by developing its drugs from marijuana.But GW Pharmaceuticals isn't one of those fly-by-night penny stocks to buy based on legalized weed. Which is why it popped on its Q2 marijuana-based sales. It's a $2.6 billion pharmaceutical company with a legitimate lead product candidate in Epidiolex, aimed to treat Dravet Syndrome and Lennox-Gastaut Syndrome.Sativex, used to treat multiple sclerosis spasticity, already is on the market. And another compound has potential uses to fight epilepsy and treat autism spectrum disorders. * 8 of the Most Shorted Stocks in the Markets Right Now Like most drug development plays, GWPH is high-risk. But there's a reason for investors to hold long-term optimism toward the company's pipeline. Success in getting those drugs to market likely would make GWPH an acquisition target at some point suggesting a significant upside from current levels. If it happens, analysts see GWPH stock surging near 30%.That in turn, would suggest likely significant upside from current levels for GWPH stock. Canadian Solar (CSIQ)Considering that solar power actually is gaining an increasing share of the U.S. market, in particular, it's surprising that solar stocks including Canadian Solar (NASDAQ:CSIQ) actually haven't done all that well.Source: Shutterstock SolarCity had to be rescued by Tesla (NASDAQ:TSLA). First Solar (NASDAQ:FSLR) is down from multi-year highs despite the recent strength.There are risks for CSIQ, in particular. "Commoditization" and price pressure could hit margins. Still, demand for CSIQ equipment is growing, the stock isn't terribly highly valued, and it's lagged of late while FSLR, in particular, has risen.Solar stocks are likely to stay choppy for a while, but CSIQ should have some room to run if it can get through the second half of the year. Superior Industries International (SUP)Superior Industries International (NYSE:SUP) is on the move again. Shipments of the company's aluminum wheels hit a record last year and it's starting to pay off.Source: Helgi Halldorsson via FlickrAuto parts stocks as a whole have had trouble, driven by "peak auto" concerns in the space. Superior itself has had a couple of missteps that impacted margins, and profits. And with SUP one of the more indebted companies in the sector, both factors have had an amplified impact on Superior's share price.But there's a reason to see a reversal as well, which is what makes SUP one of the smart stocks to buy. Near-term auto sales may be coming down, particularly in the U.S. * 7 A-Rated Stocks Under $10 Last year's acquisition of European supplier UNIWHEELS improved Superior's position overseas. And there is room to improve execution, and hopefully, margins, going forward.SUP does have potential downside risk, particularly if global macro concerns arise, pressuring auto sales and dropping SUP earnings further. But for contrarians who think the auto parts selloff is overdone, SUP is one of the more intriguing plays. Chegg (CHGG)Chegg (NYSE:CHGG) is another of the growth stocks to buy with a high valuation and a big opportunity.Source: Rob Wall via Flickr (Modified)The company began as an online textbook rental company. But it wound up outsourcing that business to another provider and since has focused on becoming the dominant digital platform for U.S. college students.And Chegg is having some success. Revenues are growing and adjusted EBITDA has turned positive after years of losses. The company's tutors and study services businesses are growing rapidly, and it's becoming a fixture in the college landscape.There are risks here beyond valuation. Like so many companies, Amazon is a potential competitor down the line, given its efforts to offer free Prime services to college students. But at this point, it might simply be easier for Amazon to buy Chegg, rather than expend the resources to try and fight it.With each passing quarter, Chegg gets more and more entrenched. And that only serves to strengthen the bull case for CHGG stock.As of this writing, Vince Martin did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Cheap Stocks That Are Leading the Blue Chips * 7 Straight-A Stocks to Build a Portfolio Around * Forget the FANGs -- Buy These 5 Tech Stocks Instead The post 9 High-Risk Stocks to Buy for Massive Rewards appeared first on InvestorPlace.