|Bid||50.13 x 2200|
|Ask||50.21 x 1200|
|Day's Range||50.03 - 50.60|
|52 Week Range||39.30 - 57.88|
|Beta (5Y Monthly)||0.46|
|PE Ratio (TTM)||54.03|
|Earnings Date||Jan 29, 2020|
|Forward Dividend & Yield||3.36 (6.65%)|
|Ex-Dividend Date||Dec 23, 2019|
|1y Target Est||54.61|
Juul’s newly appointed CFO Guy Cartwright will become the company's Chief Transformation Officer, while its Accounting Chief will step up as the Interim CFO. The changes come as Harvard unveiled a new survey that shows that long term Juul pod usage may cause lung damage due to the toxin glucan. Yahoo Lifestyle’s Abby Haglage joins On the Move to discuss.
Find out which stocks have performed the best over the past 20 years, which industries generated the most growth, and how much these stocks appreciated.
Altria Group (MO) is a consumer staples manufacturer; it built its historical growth on its flagship Marlboro cigarette brand, but in recent years has diversified itself beyond tobacco, explains Ben Reynolds, editor of Sure Retirement.
Altria (MO) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Coca-Cola's (KO) fourth-quarter 2019 results are likely to reflect benefits from its innovation efforts, product investments, strength across regions, and robust price/mix and volume.
McCormick's (MKC) fourth-quarter fiscal 2019 results are likely to reflect gains from innovation and savings from the CCI program. However, volatile currency movements are concerning.
Softness in Ag Services and Oilseeds, and Carbohydrate Solutions units is likely to have negatively impacted Archer Daniels' (ADM) Q4 performance. Its growth efforts are expected to have benefited.
CFRA downgraded Altria Group Inc. stock to sell from hold on Friday and said it expects a change in the minimum age for buying tobacco is a big headwind. Analyst Garrett Nelson lowered his 12-month price target to $44 from $50. "We think recent federal legislation raising the minimum purchase age to 21 for tobacco products presents a significant long-term headwind for MO," Nelson wrote in a note. "According to CDC data, 12.5% of middle school and 31.2% of U.S. high school students reported they were currently use of some form of tobacco product in 2019 (mostly e-cigarettes)." The company may be forced to make more "draconian" cost cuts to support profit, he wrote. The company may also need to write down part of the value of its 35% stake in e-cigarette company Juul, which has become the subject of regulatory and and criminal investigations over allegations it targeted teenagers in advertising. Altria shares were up 0.3% Friday and have gained 8.9% in the last 12 months, while the S&P 500 has gained 26%.
The long overdue rebound in marijuana stocks is finally here. The cannabis sector, led by the segment's most important company, Canopy Growth (NYSE:CGC), are breaking out in early 2020. Investors are betting that the demand and legislative troubles of 2019 will fade, and the whole industry will rebound in a big way over the next several quarters.Source: Shutterstock This isn't a small breakout, either, but a material one: Canopy Growth stock is already up 12% in 2020. That's basically 1% growth every trading day and represents the most upward momentum this stock has seen since early 2019. And it's worth noting that the move has also been on big volume, so there appears to be a lot of money out there staking big on a huge CGC turnaround.That's the good news for bulls. Here's the better news -- this big Canopy Growth stock turnaround will only get bigger as we go deeper into 2020.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Cheap Stocks to Buy Under $10 In a nutshell, favorable fundamental developments in the cannabis market will spark a significant growth trend reversal for Canopy over the next few quarters. This growth trend reversal will converge on what is still a very beaten-up and relatively discounted CGC stock. That convergence will spark a huge rally in shares to levels north of $30.Here's a deeper look. Favorable Fundamentals Will Develop in 2020Thanks to weakening fundamentals in the global cannabis market, Canopy's growth trajectory meaningfully slowed in 2019. I think that will change in 2020. Cannabis market fundamentals will strengthen and Canopy's growth trajectory will meaningfully improve.This thesis breaks down into three components: revenue growth re-acceleration, profit margin stabilization and net loss reduction.First, the introduction of new products like vapes and edibles into the Canadian market, coupled with significant legal retail footprint expansion, will re-ignite demand growth throughout Canada's legal cannabis market over the next few months. At the same time, Canopy Growth will aggressively pivot into the U.S. market with its First & Free hemp product line. Canadian legal demand revival coupled with new U.S. revenue streams will improve Canopy's revenue growth trajectory in 2020.Second, as demand trends in Canada improve in 2020, demand will finally start to catch up to a supply glut in the market. This will lead to more favorable market pricing and higher gross margins for Canopy Growth. Simultaneously, Canopy's 2019 production facilities will start to produce at capacity in 2020, which will also provide a year-over-year margin boost. Net net then, Canopy's 2019 margin headwinds could turn into 2020 margin tailwinds.Third, the combination of revenue growth re-acceleration and profit margin stabilization will lead to Canopy reporting narrower losses. That's a big deal for a hyper-growth, unprofitable company that needs to inch towards profitability in order to justify its valuation. Canopy Growth Stock Will SoarBecause of the three aforementioned fundamental improvements, CGC is set to soar in 2020.The logic is pretty simple. Investors once believed that Canopy would emerge as the top dog in an ultra valuable global cannabis industry. But slowing growth and profitability concerns clouded that bull thesis, and ultimately knocked shares down to $20. Those slowing growth and profitability concerns will ease significantly in 2020. As they do, investors will start to once again buy into the idea that Canopy is going to emerge at the top dog in a huge global cannabis industry.The last time investors believed that, Canopy Growth stock was up at $50. Shares could make a run for that level again as investors once again adopt this bullish mentality amid re-accelerating growth, stabilizing margins and narrowing losses.The numbers are pretty simple, too. Under the paradigm that Canopy will leverage its unparalleled size, resources, partnerships, and distribution to turn into the Altria (NYSE:MO) or Anheuser-Busch (NYSE:BUD) of a several hundred billion dollar global cannabis industry at scale, I think that Canopy reasonably projects to earn $5 in profits per share by fiscal 2030.Based on a forward earnings multiple of 16 and a 10% annual discount rate, that implies a a 2020 price target for Canopy Growth stock of about $33 to $34. Bottom Line on CGC StockCGC had an awful 2019 amid deteriorating cannabis market fundamentals. Shares will bounce back in 2020 amid improving cannabis market fundamentals. This rebound has already started in the first two weeks of 2020, and will continue for the balance of the year. Ultimately, Canopy Growth stock will head way higher over the next several months.As of this writing, Luke Lango was long CGC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Stocks to Buy Under $10 * 5 Retail Stocks Placer.ai Thinks Can Win Big in 2020 * 6 Cheap Stocks to Buy Under $7 The post The Big Rebound in Canopy Growth Stock Will Only Get Bigger appeared first on InvestorPlace.
Altria Group is still being investigated for antitrust violations regarding its acquisition of Juul, The Wall Street Journal reports. Separately, an analyst at CFRA downgrades the stock to sell from hold.
Altria Group Inc (NYSE: MO) investment in Juul is up in the air a year after the deal was made, as U.S. federal antitrust officials are probing the tobacco company's reach in the sector, The Wall Street Journal reported Friday, citing people familiar with the matter. In December 2018, Altria paid $12.8 billion for a 35% stake in the e-cigarette company. Altria later announced a $4.5-billion impairment charge on the investment.
Cronos (NASDAQ:CRON), the cannabis company best known for its multi-billion investment from Marlboro maker Altria (NYSE:MO) already is having a good year. Year-to-date, CRON stock is up more than 10%.Source: Shutterstock But Cronos is not alone. Pot stocks are bouncing back in 2020, with the ETFMG Alternative Harvest ETF (NYSEARCA:MJ) up more than 10% already through the first two weeks of the year amid favorable fundamental developments (a handful of marijuana companies reported strong numbers in early 2020) and legal developments (among other things, Illinois just legalized recreational marijuana).Here's my two cents: early 2020 strength in CRON stock will extend into a year-long rally for the resurgent pot stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMy rationale is simple. The whole cannabis sector will bounce back in 2020. As it does, Cronos will bounce back even more, because it represents one of the two highest quality investments in the space, and quality will become of increasing importance in this space as a clear divergence emerges between cannabis winners and cannabis losers.Net net, Cronos looks good in 2020. I think shares will head materially higher. Here's a deeper look at why. The Pot Stock Rebound Is for RealThe big rebound in pot stocks is more than a head-fake or dead-cat bounce. It's the real deal, and the start of something much bigger. * The Top 5 Dow Jones Stocks to Buy for 2020 The legal cannabis market will inevitably be huge. Drug usage data among U.S. high school students shows a clear trend: young consumers are increasingly smoking weed, and today, they smoke weed almost as much as they drink alcohol.The demand is there. The supply will get there, too, because consumer and government attitudes are rapidly shifting in favor of legalizing cannabis. Big demand plus big supply equals big market.How big? Well, if you consider that the global alcoholic beverage market is in the $1 trillion-plus range and that cannabis consumption among certain demographics is nearly equal to that of alcohol consumption, it's pretty easy to see the fully-legal global cannabis market measuring in the several hundred billion dollar range one day.Outside of Canopy Growth (NYSE:CGC), all publicly traded cannabis companies feature sub-$3 billion market caps.Clearly, these companies aren't priced appropriately. They aren't priced appropriately because investors got overly bearish in 2019 amid early challenges in Canada, the U.S. and elsewhere, and thought that these challenges would last forever.They won't. In 2020, they will fade. Demand trends will improve. Logistics will improve. Retail distribution will expand. Legislation will move forward. Everything will get better because everything is always better in Year 2 than in Year 1.Pot stocks will bounce back. And they will hold onto these gains, because the cannabis market will only get bigger and better over the next few years as it marches towards its several hundred billion dollar potential. Cronos Is a High-Quality PickIn the cannabis space, Cronos stock is a high-quality pick, and that's important because quality will be a key differentiation going forward.There are a lot of cannabis companies out there. Not all of them will survive. When you look at the alcoholic beverage and tobacco industries, the two best comps for the cannabis industry, those markets are essentially oligopolies, dominated by only a handful of conglomerates.The cannabis market will pan out no differently. It will go from hundreds of equally-sized players today, to a handful of super-sized players in a decade. This market consolidation means that while the cannabis market will grow by leaps and bounds over the next several years, this rising tide won't lift all boats; high-quality boats will rise a bunch, and low-quality boats will fall by the wayside.Cronos is unequivocally one of the high-quality boats in this space for one big reason: the multi-billion dollar investment Altria poured into the company.That huge investment is a vote of confidence from a seasoned and smart management team over at Altria. It's also enough money to shore up the balance sheet for the foreseeable future, absorb cash burn, and ease pressure on the company to cut corners to turn a profit.Most importantly, it gives Cronos ample resources to invest in the cannabis space over the next several years. Only Canopy can rival Cronos in terms of this investment firepower.Ultimately, then, CRON is one of the top two highest quality picks in the cannabis space. Thus, as pot stocks begin their multi-year rebound in 2020, Cronos will be at the epicenter of this rebound. Bottom Line on CRON StockIn a nutshell, what you have with Cronos is a sub-$3 billion company with a very reasonable opportunity to be one of the largest players in a potential several hundred billion global cannabis industry one day. That's a compelling long-term value prop.The market turned a blind eye towards this long-term value prop in 2019 amid near-term cannabis market challenges. In 2020, those challenges will fade from the scene. As they do, investors will increasingly adopt the long-term bull thesis as a consensus thesis. The more this happens, the more CRON stock will rebound.As of this writing, Luke Lango was long CGC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 5 Dow Jones Stocks to Buy for 2020 * 7 Fintech ETFs to Buy Now for Fabulous Financial Exposure * 3 Tech Stocks to Play Ahead of Earnings The post CRON Stock Could Ride the Cannabis Resurgence into a Year-Long Rally appeared first on InvestorPlace.
Philip Morris' (PM) performance is bearing adverse impacts of declining cigarette sales volume. However, expansion in RRPs and strong pricing are significant upsides.
The hits keep on coming for Aurora Cannabis (NYSE:ACB) stock. Amid earnings disappointments, management changes and sector pressure, Aurora stock continues to slide, reaching its lowest point in over two years this week.Source: Jarretera / Shutterstock.com There's a case to be made that the declines will end at some point. Balance sheet concerns are real but as I detailed last month, bankruptcy is an unlikely near-term outcome. ACB stock isn't "cheap," even below $2: considering Aurora Cannabis's debt and a market capitalization that's still near $2 billion, it trades at more than seven times its fiscal 2020 revenue estimates. But there's a huge opportunity for cannabis plays across the board, with regulatory improvements and "Cannabis 2.0" likely to boost demand in the Canadian market.And of course, the U.S. market looms. The Canadian market is attractive, and Aurora has operations around the world, but it's U.S. consumers who could really move the needle for ACB stock, and for the cannabis sector as a whole.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFederal legalization of cannabis seems likely at some point in the future, given steady progress at the state level. A regulated national market in the U.S. would support years, if not decades, of growth for the likes of Aurora, and justify what still look like reasonably high valuations across the sector. * The Top 15 Stocks to Buy in 2020 But it's becoming increasingly clear that Aurora Cannabis stock is not the play for investors bullish on the U.S. cannabis opportunity -- particularly not right now. That in turn creates a key question: if Aurora Cannabis isn't a U.S. play, are other, smaller, markets enough? The Catalyst Problem for ACB StockThe first issue with treating Aurora stock as a play on U.S. cannabis is that shifts in federal policy are highly unlikely any time soon. "The biggest legislative changes of 2020 will be the enforcement of existing laws," cannabis industry attorney Scot C. Crow of Dickinson Wright told InvestorPlace. And the upcoming presidential election will put a hold on any major changes to federal policy on marijuana."This will be a year of increased friction and enforcement as federal legislation largely stalls due to the presidential election cycle," said Crow. "IRS enforcement actions against legitimate state businesses could increase the possibility of meaningful federal action, but not realistically until after the election cycle."The SAFE Banking Act, which protects banks working with cannabis companies in states with legalized, regulated cannabis, passed the House of Representatives in November, but Senate passage seems unlikely in 2020, if at all. Instead, it's possible that the federal-state battle over cannabis will accelerate, according to Crow's prediction of "increased friction and enforcement" in 2020."Federal and state agencies enforcing existing laws will expose non-compliant state operators," Dickinson Wright Attorney Benton B. Bodamer told InvestorPlace. "Legitimate competition will bring risk of failure in select markets, testing state and federal enforceability of contracts and receivership and bankruptcy protections, even further than last year."If anything, state-level markets may look less attractive by the end of this year. We've already seen massive oversupply in markets like Oregon. As Bodamer notes, it's possible that producers will fail in response. Those failures could expose the issues, such as still-patchwork regulation and unsettled contract law, that persist in state-level markets.On the whole then, the U.S. cannabis market is likely set for a rocky 2020. And so investors buying any cannabis stock based on U.S. opportunities would do well to exercise patience until after the elections at least. Aurora's U.S. ExposureFor Aurora Cannabis in particular, the problem is more significant. Right now, the company simply doesn't have a path to a legitimate presence in the U.S. market.Aurora does have exposure to the American market in two ways. First, the company has an agreement with Australis Capital (OTCMKTS:AUSAF) to buy a significant stake in Australis in the event of U.S. legalization. Australis was spun out from Aurora in 2019, and primarily works in the U.S. cannabis market, including real estate assets. The existing partnership also suggests Australis could be a customer for Canadian-produced cannabis if U.S. regulations end up allowing for imports.Second, Aurora has a partnership with the Ultimate Fighting Championship mixed martial arts league to research the effects of cannabidiol (CBD) on athletes. That partnership, as detailed on Aurora's Q4 conference call, aims to "generate the data required to establish CBD as an accepted therapeutic ingredient."Per management, both efforts are part of a broader strategy focused on the U.S.Aurora Chairman Michael Singer said on the Q1 call that when the U.S. strategy is announced some time in the future, "it's going to be very clear as to how this ties together." The U.S. Problem for ACB StockBut investors should be highly skeptical of that statement. Aurora Cannabis's current U.S. presence isn't nearly enough. And it's hamstrung in its ability to expand into the U.S. in force.The two announced U.S. efforts are going to have minimal impact on ACB stock. Aurora's option on Australis is being affected by that company's planned merger with privately held Folium Biosciences, a deal that would give Australis just 11% ownership of the combined company. Aurora can only buy a piece of that equity -- or a low single-digit percentage of the merged business. Even if Australis and Folium combine to become a game-changer for the U.S. market, Aurora won't benefit enough to move the needle on ACB stock.As for the CBD opportunity, a research partnership is nothing close to an actual profit-generating operation. And the U.S. CBD market is a mess, with unclear regulation from the Food and Drug Administration (FDA) and a patchwork of state-level regulations. Even industry leader Charlotte's Web (OTCMKTS:CWBHF) has seen its stock decline 71% just since Aug. 5.And even if the market does become clearer, Aurora has no real edge and competition will be intense. Charlotte's Web, Cronos (NASDAQ:CRON), Canopy Growth (NYSE:CGC) and many others have their eye on the market. It's asking a lot for Aurora to outperform so many rivals, including companies that have already established supply and distribution chains when Aurora has not. The Cash IssueThere's another issue, of course: cash. Again, it doesn't seem like Aurora is going bankrupt any time soon, but it does need to conserve capital, and a decent chunk of the cash it's currently holding is going to be burned as the operating business runs at a loss. If Aurora Cannabis wants to enter the U.S. market in earnest, it will either have to spend big and build out its business or acquire an existing operator.Either option would be difficult, since Aurora just doesn't have the balance sheet for a big move, and raising more cash will be exceedingly difficult at this point. The company has already significantly diluted shareholders. Quality sellers are not likely to take risky ACB stock if they can get shares of, say, Cronos, still flush with cash from an investment by Altria Group (NYSE:MO).So it's quite difficult to see how Aurora Cannabis could enter the U.S. market in force any time soon. It doesn't have the leeway to make an acquisition, and it may not even have the capital to invest heavily by 2022 or 2024. Its existing domestic market presence is minimal.That seems like a significant problem for ACB stock going forward, especially when its peers do have U.S. optionality. Most notably, Canopy has a deal with Acreage Holdings (OTCMKTS:ACRGF) to enter the U.S. market in force as soon as federal legalization arrives. Cronos and even Tilray (NASDAQ:TLRY) will have dry powder to make their own moves.Aurora has no such luxury, with its share price depressed and balance sheet stretched. It will take years to fix both problems. And until then, investors bullish on the U.S. simply need to look elsewhere.As of this writing, Vince Martin did not hold a position in any of the securities mentioned above. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 15 Stocks to Buy in 2020 * The 7 Most Important Companies That Didn't Survive the 2010s * 4 Mega-Tech Stocks Reaching for the Sky The post Aurora Cannabis Stock May Already Have a U.S. Problem appeared first on InvestorPlace.
Tobacco giant Altria is trying to become less of a cigarette company, as demand fades for traditional tobacco products. Big bets on vaping, via a massive investment in vaping startup Juul, and even on marijuana, via a massive investment in a Canadian pot producer Cronos Group, have yet to pay off. Growing anxiety over vaping's potential health risks and lawmaker scrutiny have placed Juul directly in the cross-hairs.