174.91 0.00 (0.00%)
After hours: 6:06PM EST
|Bid||0.00 x 900|
|Ask||0.00 x 900|
|Day's Range||173.56 - 176.19|
|52 Week Range||150.37 - 236.62|
|Beta (3Y Monthly)||0.76|
|PE Ratio (TTM)||11.02|
|Earnings Date||Mar 27, 2019 - Apr 1, 2019|
|Forward Dividend & Yield||2.96 (1.70%)|
|1y Target Est||208.86|
Marijuana stocks and related ETFs caught investors' attention last year, courtesy of its mysterious rally in mid-2018 on Canada's legalization of recreational marijuana in October. Let's take a look at whether the space will be able to maintain its rally in 2019.
The California Public Employees’ Retirement System has bought more Tilray stock, and has increased its exposure to Canopy Growth.
MicroStar is proud to announce an expanded partnership agreement with Constellation Brands as its new keg solutions provider. This new partnership will help support Constellation’s growth as the high-end leader and No. 3 beer company in the U.S. with iconic Mexican import brands including Corona Extra, Corona Light, Modelo Especial, Modelo Negra and Pacifico.
Constellation Brands (STZ) closed at $173.96 in the latest trading session, marking a -0.46% move from the prior day.
Canopy Growth (NYSE:CGC) has built up a lot of excitement ahead of earnings. The marijuana sector has been on fire to start 2019. With CGC stock's strong performance, it has easily passed Tilray (NASDAQ:TLRY) to reclaim its place as North America's most valuable marijuana company. While Tilray stock is up a modest 10% year-to-date, CGC stock has surged 70% since the start of 2019.Source: Shutterstock However, this is a good time to lock in some profits on CGC stock. Signs are pointing to the company missing expectations on its earnings report. The market is likely to sell off Canopy stock following that. If you want to be involved in CGC stock here, the smart play is to wait for the stock to shake out after earnings before taking a position. Earnings: Don't Expect Big ResultsThis earnings report is not likely to be a big event for CGC stock. That's simply because legalization is too recent for sales to have really taken off yet. Aurora Cannabis (NYSE:ACB) pointed to this fact with their earnings conference call earlier this week. Aurora noted that it had sales of CAD $21.6 million in the recreational market.Aurora Chief Corporate Officer Cam Battley noted that:InvestorPlace - Stock Market News, Stock Advice & Trading Tips"Overall based on the statistics provided by Health Canada for the period October 17 to December 31, 2018, we achieved over 20% market share. Approximately one in five grams of product sold to Canadian consumers comes from one of the Aurora brands".We can figure from that statement that the overall recreational market for this past quarter was around CAD $110 million. Canopy produced just CAD $23 million in consumer revenues last quarter. Thus, the analyst expectations from Canopy of CAD $85 million for this quarter seem a bit ambitious. That would require revenues more than tripling over a three month span.Yes, recreational is operating in Canada, in addition to Canopy's other pre-existing markets. But given that the Canadian market is still so small, based on Aurora's reported results, it seems doubtful that Canopy achieved enough incremental growth to hit the analyst consensus.It's possible that CGC still tops expectations as there are a lot of moving parts. The company is building out its retail operations, for example, which could provide a significant chunk of additional revenue. Overall, however, given the sobering numbers from Aurora earlier this week, don't expect a big beat from Canopy either. An Earnings Dip Could Be A Buying OpportunityLet's be clear, in the long run, this quarter's earnings hardly matter for Canopy Growth. We're talking about a company with a market cap of CAD $21 billion ($16 billion) here. CAD $85 million is a laughably small revenue figure compared to the market cap, so it hardly matters if the company beats or misses that figure by five or ten percent.What does matter is the overall growth trajectory. How is the company doing in terms of market share? How are the retail operations going? Is the company developing strong brands and lasting relationships with its clients? That's the stuff you need to be focused on.It's worth remembering that Aurora stock initially dropped on its somewhat underwhelming earnings report but reversed course and headed higher. Analysts looked past the numbers and took a look at the outlook for the rest of 2019 and beyond.The same thing could happen with CGC stock on Friday assuming it does in fact miss earnings. Ultimately, a couple years from now, no one will care about today's earnings results. The numbers are simply too small to matter compared to the market cap.What does matter is if management can continue executing on its growth story. At the end of the day, all of these marijuana companies need revenues to go up many-fold to justify their current valuations. So, the main focus on your investment outlook for a stock like CGC should be whether they can deliver over time or not. CGC Stock VerdictI am not a fan of CGC stock heading into earnings. Shares rallied heavily on Wednesday, and are way up from recent levels. This seems like a good place to take some profits. I'd also note from a technical analysis standpoint that the stock is facing fairly heavy overhead resistance at the $50 level. CGC stock spent most of September and October trading around $50-$52 share.After the big drop last fall, CGC stock bottomed in the $20's. In January, it rallied sharply but once again the rally stopped dead in its tracks once it hit $50 level. This is clearly turning into a make or break level for the stock. That makes sense. Constellation (NYSE:STZ) invested in Canopy with the stock around $30. That effectively puts a floor on shares, since at $30, you can buy for the same price as the company's major backer. Once it gets up to $50, people who bought at $30 can sell for 67% gains. Given this technical dynamic, it'd take a great earnings report or serious positive momentum within the marijuana sector to get CGC stock over $50 in the near term. * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? As such, the optimum trade for earnings to be on the sidelines heading into the report. If the company comes up short of estimates and the stock drops back toward $40, that'd be a nice place to look to buy the dip. If the stock does break out over $50 and keep going, that could set up a nice momentum trade as well. But until CGC stock breaks that level, the stock remains a risky play, particularly ahead of earnings.At the time of this writing, Ian Bezek held no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 U.S. Stocks That Are Coming to Life Again * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 5 Tips to Become a Better Stock Trader Compare Brokers The post Caution Is Required Ahead of Canopy Growthas Earnings appeared first on InvestorPlace.
After being beaten down in the final quarter of 2018, pot stocks staged a nice comeback at the start of this year on the renewed appeal for riskier assets. Here's why ETFs are riding high this year.
Mugglehead says cannabis beverages are going to be the talk of 2019. Since securing its deal with Constellation Brands, Inc. (STZ), all eyes have been on Canopy Growth and what it plans to do in the beverages space. Recently, it also announced it would be injecting an additional CAD $30 million into Canopy Rivers Inc. (RIV.V), its investing arm.
Whether its eating a gooey, chocolatey brownie or taking a few hits off a freshly rolled joint, it???s common knowledge that a lot of people like to get high. Many investors, however, have yet to "light up." What are the best marijuana stocks out there right now?
Announcement: Moody's announces completion of a periodic review of ratings of Constellation Brands, Inc. New York, February 13, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Constellation Brands, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Businesses are stretching to blend their brands with one of the market’s hottest investment trends: cannabis. Constellation Brands, Inc. (NYSE: STZ ) seems to prove the strategy’s value. The Rating Wells ...
The market was skeptical of Constellation’s massive cannabis investment, but now the company is looking more and more prescient.
Polls show that most Americans favor legalization, and studies on the use of medical marijuana have been promising. Should you invest in cannabis now?
Dan Loeb's Third Point Had a Weak 2018: Will 2019 Be Any Better?(Continued from Prior Part)Third Point’s only new position In Q4 2018, Third Point initiated a new position in Cigna (CI), which is an American healthcare services organization. Hike
It's easy to see why growth investors like marijuana stocks. They have been on fire. Aurora Cannabis (NYSE:ACB) stock is up 45% so far this year, and Canopy Growth (NYSE:CGC) has scored a 60% gain. The Horizons Marijuana Life Sciences ETF, which tracks the industry, is up 32% in 2019.All this has happened without any real news. But news is coming.Aurora and Canopy are both due to report results this week. Analysts will be looking at their sales growth and how much cash they have in the bank. For ACB stock, which recently did a C$345 million convertible offering, and Canopy, which got a $3.8 billion equity infusion from Constellation Brands (NYSE:STZ) last year, those numbers should look good.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut we're not yet at the point of evaluating pot companies by any real metrics. It's all a lot of smoke, mirrors, highs and lows. The ACB Stock OutlookTake Aurora. While ACB stock is up sharply in 2019, its all-time high was achieved last October, at $12.52 per share, nearly 60% above where it opened for trade this morning. * 10 Best Dividend Stocks to Buy for the Next 10 Months Only three analysts cover Aurora and they're expecting a net loss of 5 cents Canadian per share, on revenue of C$54.6 million. More important are their estimates for all of 2019, C$338 million in sales, and 2020, where they expect revenue of C$839 million.Aurora has been buying up smaller rivals with stock, and our Luke Lango estimates their potential production could triple next year, with good distribution in key Canadian provinces.The trouble is that, at its Monday open near $7.50 per share, you're paying almost $7.5 billion, or $50,000 per kilogram of 2019 production. If they reach their 2020 production target, which ranges up to 700,000 kilograms, you're still paying $10,700 per 2020 kilogram for the stock right now.Aurora is thus highly vulnerable to swings in investor attitudes. Pot sales have been legal in Canada only since October, and supply chain difficulties have emerged. Aurora's ability to deliver is being questioned. Crackdowns on cannabis byproducts, or troubles at other companies, could also hammer it. Canopy GrowthThe Constellation Brands investment gives Canopy Growth a cash net under near-term problems.CGC stock is expected to lose 17 cents per share this quarter, but nine of 10 analysts following the stock like it.Canopy has 4.3 million square feet of production space, and Constellation's investment should put it in good position to benefit from moves by nine states, including Constellation's home base of New York, toward legalization.Still, Canopy's market cap of nearly $15 billion is formidable. A lot of that money is speculation capital, which could disappear quickly based on adverse news headlines.Groups that have the ear of the current administration are pushing against legalization, claiming it has been a disaster in Colorado, and the move is mainly being pushed by Democratic politicians like Sen. Cory Booker of New Jersey.Global legalization is not a slam dunk. The Bottom Line on Cannabis StocksBy any conventional measure, both Canopy and Aurora are overbought. This is a risk-on investment, as the shares have fallen hard twice just since the start of 2018. If you're going to play, know that you're going to have to keep a close eye on the news, selling when prices are strong (as they are now), buying only when the stocks are weakest.I wouldn't put a dime in either Aurora or Canopy right now but if they fall hard after earnings, I might consider putting some "mad money" -- money I can afford to burn -- into one of them.Sadly, I don't have money to burn.Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Fundamentally Sound Dividend Stocks to Buy * 5 Reasons Reeling FAANG Stocks Won't Deliver Big Returns * 3 Reasons Canopy Growth Could Burn You Compare Brokers The post Cannabis Stocks: Do Aurora or Canopy Earnings Matter? appeared first on InvestorPlace.
This past week's downgrade of Cronos Group (NASDAQ:CRON) rekindled an overdue discussion about the real value of CRON stock and pot stocks more broadly. Click to Enlarge Source: Shutterstock GMP Securities analyst Martin Landry lowered the firm's stance on Cronos Group stock from "Buy," to "Hold," not because he feels the company has hit a wall, but because CRON stock appears to have rallied too far, too fast. While not his direct intention, Landry's comments also assured less-daring investors missing out on cannabis-mania that their doubts weren't entirely unmerited. * 10 Best Dividend Stocks to Buy for the Next 10 Months More important, the marijuana craze has still lured a huge number of unsuspecting traders into a trap. The only thing really keeping these names propped up right now is hype, but hype can fade fast, and without warning.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cronos Stock and the Big RunLandry's exact words:"The company's shares have surged ~110% year-to-date on no material news and have outperformed the HMMJ cannabis index by a factor of 2. This strong performance forces us to change our rating to HOLD solely based on valuation."The GMP Securities analyst further fleshed out that Cronos is still well-positioned to capture a respectable piece of a very real but budding marijuana market. The time Cronos needs to fully figure out where it fits in an ever-changing market, however, could prove turbulent for Cronos stock.Landry went on to caution investors:"Cronos is still in the early stage of its development with limited revenues in relation to its sizable market cap. Hence, in our view, the company needs to backfill its valuation with capital deployment into the U.S. market, increase its penetration in the Canadian recreational market and continue its international expansion."It was a well-reasoned, common-sense observation and too many traders would have none of it.That dynamic has been in place for months, largely starting on the heels of news that Constellation Brands (NYSE:STZ) had made a major investment in Canopy Growth (NYSE:CGC).Shortly thereafter, Altria Group (NYSE:MO) bought $2 billion worth of Cronos stock, solidifying the idea that not only did cannabis have a bright future, but a wave of deal-making and outright acquisitions was imminent.That wave isn't quite as imminent as some have been hoping. Despite the overly-aggressive pushback against his point, that's all Landry was really trying to say. The Hype Feels RealFor the relatively small but highly vocal horde of investors who not only bought heavily into Cronos, but bought into the very premise of the cannabis movement itself, it is tough news to hear.They're not wrong to be optimistic; the marijuana legalization movement is steam-rolling its way across the world.Their expectations and timeframes, however, are uncomfortably aggressive.We've seen it happen before. Think back to 2013. That was the rise of the affordable (sort of) 3D printers, which were supposed to revolutionize small-scale manufacturing. And they did, to some degree. Investors who bought into the idea of the craze at the time were severely punished though.3D Systems (NYSE:DDD), a poster child of the 3D printing revolution unfurling at the time, soared from $12 per share near the beginning of 2012 to a peak of more than $80 in 2013. By late-2015, it was back under $9 per share, with 3D printers never living up to their full hype.Another proverbial failure-to-launch: The 2012 race between Arena Pharmaceuticals (NASDAQ:ARNA) and Orexigen Therapeutics (OTCMKTS:OREXQ) to introduce the first FDA-approved weight-loss drug to the U.S. market in thirteen years.Both stocks soared on their respective prospects, but neither stock has ever been priced as high as they were right around the times of their approvals. Neither drug has met lofty sales expectations being batted around them. Orexigen, in fact, has since declared bankruptcy.Investors were certain at the time, of course, that could never happen. The buzz was too strong.Add solar panels, cryptocurrency, real estate in 2008, dot-coms in 2000, wearables, and a hundred others to the lists of investing letdowns. They all still have a place, and offer select investment opportunities to be sure.They've all, however, pulled the rug out from underneath early-cycle investors that loved the premise but ignored the plausible math.Yet, somehow the "this time is different" argument is being recycled, indicating investors believe pot stocks will never see any serious downside again. Bottom Line for Cronos StockOr, perhaps this time truly is different. Never say never. If we're thinking realistically though, it's naive to not suspect the ongoing legitimization of marijuana won't draw bigger players into the arena before outfits like Cronos get a chance to fully take rook and make a buck.Such a development sets the stage for potential acquisitions. Indeed, bigger players have already tiptoed into partial ownership. That bodes well for Cronos Group stock.Those would-be buyers have far more time to let the dust settle than most M&A-minded investors care to believe though. That leaves plenty of time to wear the polish off of CRON stock and its peers, and let the reality of debt and heavy spending tarnish the shine.Still, there's no denying Cronos Group stock will make for some great swing trading, the next one of which should be pointed down. GMP Securities' Landry couldn't be quite that blunt, of course.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Fundamentally Sound Dividend Stocks to Buy * 5 Reasons Reeling FAANG Stocks Won't Deliver Big Returns * 3 Reasons Canopy Growth Could Burn You Compare Brokers The post Don't Get Trapped by All the Hype Surrounding Cronos Stock appeared first on InvestorPlace.
The world’s three biggest pot stocks are expected to let markets know how they’ve been performing this week. Aurora Cannabis Inc. (ACB) is scheduled to announce fiscal 2018 earnings Monday evening, Tilray Inc. (TLRY) is poised to release fourth-quarter 2018 results on Tuesday and Canopy Growth Corp. (CGC) is due to report after the final bell on Thursday. Cannabis grower Auxly Cannabis Group Inc. (XLY) is also set to update markets at some point during the week.
In the latest trading session, Constellation Brands (STZ) closed at $175.21, marking a +0.67% move from the previous day.
The rough end to 2018 put analysts on their toes as they looked ahead toward 2019. Some experts suggested that with U.S. GDP growth projected to slow, investors should rotate into more defensive sectors such as consumer staples and healthcare. However, others said the markets would surprise the pessimists with a robust recovery."Based on fundamentals, I don't think the pullback we had in this market was ever justified. Markets will do what they'll do. I think you have significant upside here," Jonathan Golub, chief U.S. equities strategist at Credit Suisse, told CNBC on Dec. 31. "Therefore, we would think that the bottom has been put in this market."If you lean toward 2019 being a bounce-back year, consumer stocks are an excellent choice to ride the wave.One metric that drives the share prices of consumer stocks is the strength of the job market. If Americans are employed and their wages are growing, that will help consumer spending. Well, the U.S. has trounced expectations in two nonfarm payrolls reports announced this year (December and January), which should go a long way toward strengthening consumer spending trends.Here are 10 of the best consumer stocks to buy for 2019. Some of these stocks are more defensive in nature - better suited for a volatile year. A few others are more aggressive and could ride a bullish wave better than most. SEE ALSO: 57 Dividend Stocks You Can Count On in 2019
There are two ways bulls can play a stock like marijuana producer Canopy Growth (NYSE:CGC) … The first option simply is to buy CGC stock and hold it. From that standpoint, the long-term case -- that Canopy will be a leader in a growing, worldwide marijuana industry and Canopy Growth stock will rise as a result -- is worth riding out any volatility over the near term.The second option is to trade that volatility. Even if the long-term case holds, the near-term price matters. Considering that Canopy Growth stock has gone from $25 to $55-plus, to $25 again and then back $50 in a six-month span, patient investors can try and time the stock to get the best possible price.The issue for CGC stock, back near $50 even after some recent weakness, is that both methods at the moment suggest caution, if not outright skepticism. CGC's huge gains of late -- the stock already is up 73% year-to-date (YTD) -- suggest profit-taking could be on the way. And for investors focused solely on the long-term, an $11 billion valuation already incorporates quite a bit of success.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Reasons You Want Boeing Stock in Your Portfolio I still think CGC is one of the most attractive stocks in the sector, and I liked CGC closer to $30 back in October. But there remain echoes of the dot-com bubble in pot stocks, and any stumble in the broad market could lead to yet another reversal in the sector. Ahead of Canopy Growth earnings next week, investors should be particularly careful not to get burned. Reason 1: CGC Stock Needs Outside HelpAs noted, Canopy Growth stock has been on quite the roller-coaster ride over the past few months. But it's difficult to disentangle the sentiment toward CGC (and other pot stocks) from investor sentiment toward stocks more broadly.After all, CGC's plunge from mid-October highs near $60 wasn't driven by any real company-specific news. There was a "sell the news" event as Canada legalized recreational marijuana on Oct. 17. But it's not as if Canopy Growth earnings missed expectations or the long-term expectations for pot changed notably.Rather, investors simply moved away from risk. And CGC, as a result, lost more than half its value in a little over two months. As market optimism returned toward the end of 2018, Canopy Growth shares rallied -- and in fact doubled.Already, there are some signs of cracking, as CGC has pulled back in recent sessions. It's not difficult to imagine another reversal coming in the next few months, if not the next few weeks. U.S. stocks, on the whole, are up nicely in 2019, but it does feel a bit like a bear market rally rather than the beginning of a new uptrend. If that's the case, CGC could tumble once again. Reason 2: Canopy Growth Stock Lacks a CatalystWhatever the broad market does, after the YTD rally, CGC stock needs something to move it even higher. And I'm not sure what that's supposed to be.Canopy Growth earnings are on the way next Thursday, but they're not necessarily likely to move the stock. The near-$11 billion market capitalization here is based on potential profits next decade and beyond. Strong growth in a single quarter isn't really changing the story here.Earnings in November did seem to hurt CGC stock, which fell into and out of the report. But that's kind of the point: there's so much priced in here that a single quarter can't move the stock.What will move the stock is big, sector-wide news. And it's tough to see what that could be. U.S. legalization is the obvious mover … but it's difficult to imagine any movement on that front for some time. Canopy already has received its multi-billion dollar investment from Constellation Brands (NYSE:STZ,STZ.B). Cronos Group (NASDAQ:CRON) has tied up with Altria (NYSE:MO). There may not be a third giant on the way. * 10 Best Dividend Stocks to Buy for the Next 10 Months So what changes the long-term story here? It's difficult to see, beyond incremental movement in Canada. In terms of Canopy Growth and its industry, it's difficult to imagine a piece of good news that isn't already part of the story here. Reason 3: The Valuation Has Moved HigherOne of the reasons CGC stock looked intriguing under $35 was because investors were getting a discount to what Constellation had paid for Canopy Growth stock. The beverage giant invested in CGC at $37 per share, though with additional warrants the effective price was closer to the low-$30s.Still, there was an obvious bull case at those levels. A hugely successful (Constellation stock is a multi-bagger this decade) company had opened the Canopy Growth books, done its due diligence and decided to buy shares at more than $30. Shouldn't an investor -- any investor -- do the same just a few months later?At $46, however, that argument is moot. In fact, it looks potentially bearish for Canopy Growth stock. If Constellation thought the stock was worth $35 or so in August, and Canopy Growth management was happy to take $35, what's the point of paying $46 six months later? That's a 30% or so premium, and yet, not all that much has changed in the meantime.Again, for long-term believers in pot, that issue might not really matter. But I'm not quite as convinced that legalized, commercially grown marijuana is going to grow as fast -- or be as profitable -- as those adherents think.As such, price matters. And with Canopy Growth stock back toward the high-end of the range, it's tougher to justify the current price. Even investors who are long-term believers might want to consider exiting. It won't be long before a better, lower price is on offer.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Monster Growth Stocks to Buy for 2019 and Beyond * 7 Cloud Stocks To Buy Now * 5 Undervalued Stocks to Invest In Compare Brokers The post 3 Reasons Canopy Growth Could Burn You appeared first on InvestorPlace.
Constellation Brands (STZ) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.