|Bid||31.65 x 0|
|Ask||31.70 x 0|
|Day's Range||31.37 - 33.75|
|52 Week Range||18.23 - 70.98|
|Beta (5Y Monthly)||3.80|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 11, 2020 - Feb 16, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||28.72|
Canopy Growth Corporation ("Canopy Growth" or the "Company") (TSX: WEED), (NYSE: CGC) submitted its final documentation for its beverage facility to Health Canada in late June 2019 and subsequently received the licence in late November 2019. In the seven weeks since receiving the licence, the Company has made meaningful progress towards scaling the production process for its cannabis beverages from lab scale to commercial scale.
Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of Canopy Growth Corporation from September 8, 2017 through November 13, 2019, inclusive (the "Class Period"), of the important January 21, 2020 lead plaintiff deadline in the securities class action. The lawsuit seeks to recover damages for Canopy investors under the federal securities laws.
The cannabis industry enjoyed tremendous investor enthusiasm in 2018, fueled in large part by major developments which seemed to open up the space for new opportunities. In spite of the fact that cannabis stocks overall failed to perform up to expectations last year, 2019 has already revealed continued anticipation regarding this growing industry. If cannabis stocks are to thrive going forward, it's likely that many companies will have some growing up to do.
With recreational cannabis use legal among adults in Canada and marijuana companies on the rise, there is an opportunity for imports to the U.S.
Despite waning investor optimism in the cannabis space, AdvisorShares CEO Noah Hamman says 2020 could be a big year for the sector.
The next four to six months will be tumultuous for the cannabis sector, pricing pressure will continue and about 50% of companies with Canadian licenses are facing bankruptcy. Those were some of the talking points at day two of the ICR Conference in Orlando, Fla., according to MKM analyst Bill Kirk, who highlighted the subdued tone at the event in an early note to investors. "With years of reckless spending, less growth than expected, limited access to capital markets, excess supply, and uncompetitive pricing (to illicit market), we generally agree," Kirk wrote. "And while there may be opportunities on the other side of the looming shakeout, we can't get excited about sector-wide upside." The analyst named Acreage and Flowr as two companies in attendance that he rates as buy. Acreage stock offers a wide discount to the deal price (the company will be acquired by Canopy Growth Corp. as soon as cannabis restrictions in the U.S. are lifted) and is improving profitability as states mature, he wrote. Flowr has fewer supply issues in the Canadian premium market and has better mix exposure to Portugal and Germany, he wrote. Kirk has neutral ratings on Tilray and Cronos . "It is very likely the negative outlook shared at ICR will come to fruition. Acreage and Flowr are opportunities within this set-up largely because they operate outside many of the issues," said the note. The ETFMG Alternative Harvest ETF has fallen 41% in the last 12 months, while the S&P 500 has gained 26%.
Aphria Inc.’s U.S.-listed shares slid 9% Tuesday before paring their losses, after the Canadian cannabis company posted weaker-than-expected revenue for its fiscal second quarter and revised down its guidance to reflect issues including a slower rollout of retail locations in Ontario.
The business of growing cannabis is anything but green, in fact, the growing of pot is so power-intensive that its ecological footprint is quickly becoming an environmental nightmare
At some point, Aurora Cannabis (NYSE:ACB) has to be a buy. Right? Perhaps eventually, it will be. But until Aurora stock shows signs that its downtrend is ending, why stick with a loser?Source: ElRoi / Shutterstock.com I couldn't have been more clear about how I feel about cannabis stocks at this point. While many of these companies have explosive opportunities over the next 12 to 48 months, many others lack the financial strength to survive over that time frame.As a result, investors need to blend the technicals and fundamentals -- hand-picking which ones are most likely to survive, then thrive. In the summer when support gave way, I waved a flag of caution. After the washout and subsequent bounce in November, I said to avoid Aurora stock as it struggled to rebound.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI don't write that to showboat -- trust me, I've had more than enough servings of humble pie. Instead, I write it to drive home the same point: If you're going to speculate with cannabis stocks, don't do it with the losers. Avoid Aurora StockSource: Chart courtesy of StockCharts.comThe first problem with ACB stock? The chart. * 4 Energy Stocks to Power the New Year Aurora stock continues to make new low after new low. In mid-November, the stock plunged to new lows. ACB stock bottomed at $2.14 and within days, shares were up about 50% -- hitting a high of $3.25.However, the 20-day moving average remained stiff resistance, and Aurora stock was unable to reclaim prior range support near $3.50. That right there was the first sign that ACB stock was to be avoided.The next sign came when it failed to hold the $2.40 area, which quickly sent Aurora stock back down to new lows. Those lows now continue to break, leading to lower prices. I don't know when ACB stock will bottom, but until it puts in a low and reverses trend, I'm not interested in buying it.Then, there are the financials.Despite explosive revenue growth and -- quite frankly -- solid gross margins, Aurora Cannabis is losing tons of money. Trailing revenue of 293.5 million CAD has produced a gross profit of 205.5 million CAD. Solid right? It is, but a trailing net loss of 383.5 million CAD is a red flag.Total cash went from about 316 million CAD at the end of June to 191.9 million CAD at the end of September. Current liabilities weigh in at about 464.6 million CAD, while current assets of 588.3 million CAD.Will ACB face a liquidity issue? I'm not sure. I just know that it lacks the same financial firepower as some of its peers, while the charts remain detrimental to the bull case. If Not Aurora Stock, Then Who?I like several other names more than ACB stock, including Canopy Growth (NYSE:CGC) and Aphria (NYSE:APHA). Canopy's thesis and chart can be viewed here, while Aphria's is available here.While neither stock is robust at the moment, they are making much better strides that Aurora stock.First, both have broken over downtrend resistance. In Canopy's case, the stock is maintaining over the 20-day and 50-day moving averages as well. For Aphria, the stock is just over these key moving averages, and remaining above them would be a victory for the bulls. Second, these stocks are not only avoiding new lows, they are holding key support marks.If that changes, it's an opportunity for speculators to consider stopping out and limiting the damage. With Aurora stock, we don't have key support holding up -- so we don't have a way to measure risk.Now, look at the balance sheet difference (all figures in CAD).Current Assets Current Liabilities Ratio (Current) Total Assets Total Liabilities CGC 3.6B 425.8M 8.4 8.2B 2.6B APHA 780.8M 138.5M 6.0 2.4B 708.4M ACB 588.3M 464.6M 1.3 5.6B 1.1B Are these companies perfect? Not by any means. Canopy has a strong balance sheet, but negative free cash flow. Aphria has a smaller balance and is not yet generating positive free cash flow, but has turned a profit in seven of the last nine quarters.These are not slam dunks, but APHA and CGC have better setups than Aurora stock. That said, they are still speculative stocks.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long APHA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Mid-Cap ETFs to Buy for Next Decade * 8 Quirky ETFs for Not-So-Quirky Profits * 4 Energy Stocks to Power the New Year The post Avoid Aurora Stock, Buy Canopy Growth Stock for Cannabis Exposure appeared first on InvestorPlace.
The Canadian pot producer blames a change in Germany’s reimbursement for medical marijuana, but says demand is strong. Shares are down 8%.
With no reason to sell off, why wouldn't stocks continue higher on Monday? Let's look at a few top stock trades for Tuesday, when earnings season will begin with the banks. Top Stock Trades for Tomorrow No. 1: Canopy Growth (CGC)Source: Chart courtesy of StockCharts.comThe cannabis space is far from being out of the woods, but there are two names in the group that I have liked recently, one of which is Canopy Growth (NYSE:CGC).Canopy shares are hitting their highest level since October, as shares push higher on Monday. In doing so, CGC is reclaiming both the $22 level and the 100-day moving average.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt might get there in a few days or it might take a few months, but a rally up and over $25 into the upper-$20s shouldn't be out of the question now. * 7 Inflation-Beating REITs to Ground Your Income Portfolio On the downside, it would be best for CGC to hold $21.50 as support. Below that level and bulls will need to see the 50-day and uptrend support (purple line) need to hold as support. Top Stock Trades for Tomorrow No. 2: AT&T (T)Source: Chart courtesy of StockCharts.comResistance continues to hold near $39 for AT&T (NYSE:T), while Monday's pullback is sending T stock right into the 50-day moving average and uptrend support (blue line). This one is simple now.Below uptrend support and the 100-day moving average is in play. Below that and the $36 to $36.50 area is possible. If current support holds, look for a rebound back up to $39. If it can get over that level, AT&T could be looking at $40-plus. Top Stock Trades for Tomorrow No. 3: Roku (ROKU)Source: Chart courtesy of StockCharts.comWhile many growth stocks have been rallying, Roku (NASDAQ:ROKU) has been struggling. Shares did reverse off $127 support on Monday, but still face downtrend resistance (blue line) overhead.Falling below the 20-day and 50-day moving averages does not bode well for momentum, but Roku isn't completely stuck.A move back over downtrend resistance and the 50-day moving average could trigger a rally up to $150-plus. However, a move below $127 puts the $117 to $120 area on watch, with the 200-day moving average just below. Top Stock Trades for Tomorrow No. 4: Aphria (APHA)Source: Chart courtesy of StockCharts.comAt the top, I mentioned that I liked two cannabis stocks. CGC was the first and Aphria (NYSE:APHA) is the other. The latter isn't moving quite as nicely as the former, but it's showing breakout potential.Rallying into the 100-day moving average and downtrend resistance (blue line) now, APHA stock has a chance to power higher and draw in buyers.A move over $5.50 would add to its momentum and put the declining 200-day moving average in play. If it can't hurdle current resistance, see that it holds up over the 50-day moving average. Below that level puts $4.50 back on the table. Top Stock Trades for Tomorrow No. 5: Invitae (NVTA)Source: Chart courtesy of StockCharts.comWhat a wild ride it has been with Invitae (NASDAQ:NVTA). Shares are surging higher on Monday after an update from management on Sunday night regarding 2019 results and 2020 guidance.The news sent shares higher by about 10%, with many longs wondering if this is the start of something big or if it will ultimately deflate like the last pop.The stock is back over $17, while uptrend support (blue line) continues to hold. Shares are clearing downtrend resistance (purple line), and while investors will be looking at $20, that's not the level to watch. Instead, it's the 50-week moving average at $20.55.Over that level and NVTA can really start to find its momentum.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU, T, APHA and NVTA. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Inflation-Beating REITs to Ground Your Income Portfolio * 7 Healthcare Stocks to Buy or Sell As Pricing Pressures Mount * 7 Earnings Reports to Watch This Week The post 5 Top Stock Trades for Tuesday: CGC, T, ROKU appeared first on InvestorPlace.
It's no secret 2019 wasn't a good one for cannabis stocks. Some investors might be asking the question: Is now be a good time to gain industry exposure with Aurora Cannabis (NYSE:ACB)? Let's see what happening off and on the price chart to reach a stronger risk-adjusted determination in 2020's early going.Source: Shutterstock Last year was a painful one for Aurora stock. Not that the marijuana producer was alone. From former standout Tilray (NASDAQ:TLRY) to the industry's largest Canopy Growth (NYSE:CGC), or niche players such as Aphria (NASDAQ:APHA), most cannabis companies shares went up in smoke in 2019. For its part ACB stock plunged 67%. * 7 Inflation-Beating REITs to Ground Your Income Portfolio To be clear, much of the bearish price action in Aurora wasn't without cause. Over the period there were plenty of quarterly misses and losses to contend with. But the real albatross weighing on shares in 2019 was Aurora's precarious debt situation within a much more challenging cannabis market than investors anticipated. And right now Wall Street doesn't see 2020 as looking any easier.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Analyst Take on ACBLate last week two analysts came out with "sell" ratings on ACB. Investment bank Piper Jaffrey cited a poor balance sheet and weak EU sales as risks for the company. The firm also issued a $1 price target for the stock.The firm warned Aurora Cannabis isn't likely to achieve positive cash flow until the third quarter of 2021. In the interim, it sees the company's debt growing by roughly $152 million. Worse yet, the liability is on top the outfit's existing need to refinance approximately $274 million in debt due August 2021.On Friday Bank of America Merrill Lynch chimed in with similar reservations. In their estimation, the pot producer's debt obligations won't be covered and supersede ACB's strong position in Canada's recreational marijuana market. Aurora Cannabis Stock Monthly ChartSource: Charts by TradingViewThe monthly chart of ACB stock largely supports Wall Street's sell-side at this juncture. ACB stock is down in nine of its last ten months. Worse and technically, shares have broken most every conceivable layer of bullish price, pattern and Fibonacci support along the way. Aurora is now in strong position to challenge 2017's key low of $1.38 which followed the initial run-up in shares.At this time there's little reason to see this next technical test as having an outcome any different than ACB's multiple failures in 2019. The bears are in control with no signs of letting up. Moreover, in 2020 I wouldn't dismiss or discount Piper's $1 price target and the threat of shares once again becoming an actual penny stock.Market Maker's Edge: Despite the obvious admonitions off and on the price chart, I'm not keen on shorting sub $2 stocks. As a former options market maker, I'd stress buying a bear put spread. This kind of position smartly limits and reduces the position's Greeks while allowing for solid profit potential.For investors wanting to buck today's overwhelming bearish warnings, I'd first recommend waiting on monthly chart confirmation a bottom is in Aurora Cannabis. Right now, that would mean waiting until February and a rally above January's high of $2.27 before considering a position. From there, a longer-dated married put strategy or out-of-the-money long call play due to potential asymmetric risk is where I'd begin looking for long delta exposure.Investment accounts under Christopher Tyler's management do not currently own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Inflation-Beating REITs to Ground Your Income Portfolio * 7 Healthcare Stocks to Buy or Sell As Pricing Pressures Mount * 7 Earnings Reports to Watch This Week The post Why 2020 Could Be an Even Uglier One for Aurora Stock appeared first on InvestorPlace.
Cannabis Countdown: Top 10 Marijuana Stock News Stories of the Week Welcome to the Cannabis Countdown . In this week’s rendition, we’ll recap and countdown the top 10 marijuana stock news stories for ...
Week two of 2020 was an exciting one, with New York Gov. Andrew Cuomo pledging to legalize adult-use marijuana in the state this year, news about a medical marijuana legalization measure making it to the November ballot in Mississippi, and South Dakota announcing its Secretary of State Steve Barnett has approved a proposed constitutional amendment that would legalize adult-use cannabis and make the state legislature enact a hemp cultivation law. In Illinois, the Department of Financial and Professional Regulation disclosed sales of recreational marijuana had almost hit $11 million in their first week, while Chicago’s O'Hare International Airport and Midway Airport installed boxes for passengers to dispose of any cannabis they might have before boarding an airplane in the wake of the legalization of recreational marijuana in Illinois on Jan. 1.
Called Keep, the desktop storage device features biometric security to secure cannabis products, and looks good while doing it. The CTA gave them an Innovations Award Nominee in October and then weeks later told the company they were unable to use the word "cannabis" when exhibiting. Vaporizers, cannabis and tobacco alike have long been found on the CES show floor.
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.
When the U.S. launched a missile strike that killed top Iranian general Qasem Soleimani, people around the world freaked out, claiming that this was the beginning of World War III. Investors freaked out, too, and markets around the globe tumbled the day after the missile strike.But my reaction to the missile strike was completely the opposite -- I saw it as a big plus for the U.S. stock market, and an even bigger plus for growth stocks.No matter which way you slice it, higher interest rates are the number one enemy of the stock market and the economy. Long story short, after a decade of next-to-zero interest rates, the market and economy have become addicted to and heavily dependent upon those low interest rates. A hike in interest rates would put tremendous pressure on companies' heavily-levered balance sheets and stocks' aggressively extended valuations. But, so long as interest rates remain low and a cataclysmic Black Swan event doesn't emerge, the economy and stocks will continue to push higher.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFrom this perspective, the U.S. missile strike on Iran is exactly what the stock market needed to head higher in 2020. This event sustains the Goldilocks global economy which propelled stocks way higher in 2019. That is, it creates enough worry to keep investors on their toes and keep interest rates depressed. But it doesn't create enough worry to meaningfully slow economic activity globally. * The Top 15 Stocks to Buy in 2020 That's a great combination which means that growth stocks -- which are big winners in low rate environments -- will head doubly higher. With that in mind, let's take a look at five growth stocks to buy as the Goldilocks economy persists. The Trade Desk (TTD)Source: Shutterstock/ Bella Melo Programmatic advertising leader The Trade Desk (NASDAQ:TTD) has been one of the best-performing growth stocks in recent memory. Over the past three years, TTD stock is up more than 900%, as the company has become a bigger and more important player in the global digital ad landscape.Long story short, programmatic advertising has turned into the future of digital advertising. As opposed to leveraging humans and guess-and-check processes to run ad campaigns, advertisers around the world are increasingly automating ad transaction processes using data and algorithms. This programmatic advertising pivot will persist in 2020, as automation tech gains more traction and digital ad spending trends remain strong.As it does, The Trade Desk -- which is widely considered the world's best and most robust demand-side programmatic ad platform -- will continue to attract more clients and grow ad spend per client. Revenue growth trends will remain robust. Profit margins will improve with scale as the company relies more on ad spend per client growth, and less on marketing spend. Profits will continue to roar higher.At this point, it seems like the only thing that can stop TTD stock is valuation friction. Indeed, up at almost 75-times forward earnings, TTD stock does seem richly valued.But low interest rates support this extended valuation. So long as interest rates remain low and the company maintains growth momentum, TTD stock will push higher. Both of those things will happen in 2020. As such, the big multi-year rally in TTD stock won't end this year. Beyond Meat (BYND)Source: calimedia / Shutterstock.com During the first half of 2019, plant-based meat maker Beyond Meat (NASDAQ:BYND) was one of the market's best performing growth stocks. During the second half, it was one of the market's worst performing growth stocks. In 2020, BYND stock appears well positioned to regain the winning streak it had during the first half of 2019.As Bill Gates once said, people tend to overestimate what can be accomplished in a year, and underestimate what can be accomplished in a decade. Beyond Meat is a living illustration of this. In 2019, everyone expected Beyond Meat and the plant-based meat trend to take over the world right away. Investors overestimated how much the company could accomplish in a year. The stock price reflected this, and as the company delivered numbers that were below expectations, the stock collapsed.Now, on the heels of this stock price collapse, investors are underestimating how much the company can accomplish over the next decade. During that stretch, plant-based meat will become the norm, thanks to health, cost, and resource conservation advantages. Beyond Meat will maintain its status as "the brand name" in the plant-based space. The company will turn into a global meats giant worth tens of billions of dollars. * 7 Stocks That Are Screaming Buys Right Now The Beyond Meat stock price today does not reflect this reality. Consequently, the company will deliver numbers in 2020 and beyond that exceed expectations. As it does, the stock will rebound from this big sell-off, especially against the back-drop of low interest rates. Square (SQ)Source: Jonathan Weiss / Shutterstock.com The 2020 bull thesis on payments processor Square (NYSE:SQ) boils down to four components.First, Square is a growth stock with a growth valuation. Interest rates project to remain low in 2020, and therefore project to remain supportive of growth stocks and growth valuations. Sustained low rates will consequently provide support for SQ stock over the next few months.Second, Square's adjusted revenue growth rates will stabilize and potentially even improve in 2020, thanks to rebounding economic activity, which should lead to upped consumer spending and heavier spend through the Square ecosystem. At the same time, new product launches like Cash App will continue to gain meaningful traction in this healthy consumer spending environment, providing more lift to Square's adjusted revenue growth rates. That's important, because when Square's adjusted revenue growth trajectory is improving, SQ stock tends to do very well.Third, Square's profit margins will continue to improve because the company's higher-margin services businesses will become bigger revenue contributors in 2020, thereby putting upward pressure on gross margins. Sustained big revenue growth should also drive bigger positive operating leverage.Fourth, at 72-times forward earnings for 30%-plus revenue growth and even bigger profit growth, SQ stock is one of the more attractively valued growth stocks in the market. Thus, favorable fundamental developments coupled with low rates have the potential to push SQ stock meaningfully higher from today's relatively depressed base. Canopy Growth (CGC)Source: Shutterstock Pot stocks had a rough go in 2019. Pot stock poster child Canopy Growth (NYSE:CGC) was no exception. Shares presently trade more than 60% off their early 2019 highs. But the whole cannabis sector -- led by CGC -- could stage a big rebound in 2020.The rebound thesis on CGC stock is fairly straightforward. All the things that went wrong for Canopy Growth in 2019 will go right in 2020. Falling revenue growth rates will turn into rising revenue growth rates, as demand trends in Canada stabilize thanks to the introduction of vapes and edibles products into the legal market, as well as more aggressive retail store expansion.Compressing margins will turn into expanding margins, as black market pricing pressures ease with improving demand trends and as the pace of production capacity expansion slows. Snail-like progress on the U.S. legislation front will pick up speed in 2020 as the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act makes its way through Washington.Canopy's 2019 headwinds will turn into 2020 tailwinds. Those 2020 tailwinds will converge on what has become a hugely depressed CGC stock with a record low valuation, to spark a big rebound in shares. * 10 2019 Winners That Will Be 2020 Losers Of course, low interest rates won't hurt, either. Canopy Growth -- like all pot stocks -- is still richly valued relative to the rest of the market. Low interest rates will help provide support for this extended valuation, especially as the growth narrative regains momentum. Snap (SNAP)Source: Ink Drop / Shutterstock.com Digital ad stocks are positioned to have a strong 2020, because the strength of ad market is closely tied to the strength of the overall economy (i.e. when the economy is firing on all cylinders, companies are more comfortable spending big on advertising). As such, the likes of Facebook (NASDAQ:FB), Alphabet (NASDAQ:GOOG), Pinterest (NYSE:PINS), and others will move higher in 2020.One digital ad stock which could out-perform peers in a big way in 2020 is Snap (NYSE:SNAP). Snap has been untouched by political ad scandals. By contrast, Facebook and Alphabet are feeling huge pressure to more strictly censor and even ban political ads in 2020. That means these companies are operating with their hands tied behind their backs. Snap isn't. That puts the company in a strong position to win a ton of political ad dollars this year.Second, Snap's newest product innovation, Cameos, looks very similar to the face swap filter of early 2019. That face swap filter was a big driver behind the platform's impressive user growth in early 2019, which drove huge gains in SNAP stock. The same thing could happen in early 2020. Cameos could power above-consensus user growth, which could spark another leg higher in SNAP stock.Third, Snap's profit margin profile will continue to meaningfully improve in 2020 as gross margins move higher alongside more favorable ad demand trends, and as sustained big revenue growth drives positive operating leverage.Connecting all the dots, it seems clear that Snap stock will regain its early 2019 momentum in early 2020, and sustain that momentum for most of the year.As of this writing, Luke Lango was long TTD, BYND, SQ, CGC, FB, and PINS. 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 5 Growth Stocks to Buy for 2020 appeared first on InvestorPlace.
Last year, the cannabis trade was an absolute nightmare. Just about every company came under the crush of heavy selling like Cronos Group (NASDAQ:CRON), Tilray (NASDAQ:TLRY) and Aurora Cannabis (NYSE:ACB).Source: Shutterstock The main reason for this? Simply put, the legalization of cannabis in Canada was overhyped. It also did not help that there were problems with getting retail permits and that black market activities got worse.Despite all this, I think much of this has been baked into the valuations. In other words, there are some interesting opportunities for investors.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 of the Strangest Stocks Worth Your Time One that is a standout is Canopy Growth (NYSE:CGC) stock. It is a clear leader in the space, with advantages like the following: * The company has roughly $2.7 billion in the bank. This puts CGC in a strong position as funding has been drying up for cannabis operators. * Canopy has leading market share positions - of over 35% -- in Alberta, which is the most developed recreational market in Canada. There are also supply agreements with government agencies in ten Canadian provinces and territories. * The Spectrum Therapeutics medical subsidiary is a major player in the medical cannabis space, with about 75,600 patients. * There is about 5.4 million square feet of licensed capacity in operation in Canada.All in all, Canopy Growth stock has the benefit of tremendous scale, diversification and liquidity. Because of this, it seems like a pretty good bet that - even if the shakeout continues in the industry - the company will be a long-term winner. The Drivers for 2020One of the many dramas for Canopy Growth stock during 2019 was the termination of CEO Bruce Linton. The company's largest shareholder, Constellation Brands (NYSE:STZ), simply got fed up with the losses that were piling.So, the replacement for Linton will take the helm in mid-January. He is David Klein, who has served in senior leadership roles for the past 14 years at STZ. According to the press release:His capabilities include extensive CPG and beverage alcohol industry experience, strong financial orientation, and experience operating in highly regulated markets in the U.S., Canada, Mexico and Europe. David is an experienced strategist with a deep understanding of how to build enduring consumer brands while leveraging operational scale across a dispersed production footprint. He is a strong leader with a proven track record of developing diverse and high performing teams.Yes, these are the kinds of skill sets that will be crucial for the success of Canopy Growth stock. Initially, Klein is likely to focus on streamlining the organization to get on a path to profitability. But in the meantime, there are some catalysts that should help bolster growth.For example, the U.S. market is looking more promising. Because of the Agriculture Improvement Act of 2018, CGC has been able to introduce hemp and CBD offerings into the market (such as the First & Free line). This has been the result of investments in building a supply chain for hemp cultivation, processing and production.And if there is legalization on a federal level in the U.S., Canopy will be positioned to benefit as it has a partnership agreement with Acreage Holdings.That said, the Cannabis 2.0 opportunity is probably the most important catalyst for the company. This has legalized edibles in the Canadian market, which could be worth $2.7 billion based on research from Deloitte.CGC is definitely prepared. Keep in mind that it already has more than 30 SKUs submitted to Health Canada for vapes, chocolates and beverages. Bottom Line on CGC StockSince mid-November, Canopy Growth stock has staged a nice rally, going from $14 to $20. True, given the swirling uncertainty and continued problems in Canada, this gain could prove temporary. For the most part, volatility will probably continue.So, it's still advisable to not be too aggressive with Canopy Growth Stock. But if you have a longer-term perspective on things, I think gradually building a position does make sense right now.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. 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 * 8 of the Strangest Stocks Worth Your Time * 7 Stocks to Buy That Trump's Tax Cut Truly Rewarded * 5 Stocks That Could Double in 2020 The post Has the Smoke Finally Cleared for Canopy Growth Stock? appeared first on InvestorPlace.
Constellation's Modelo Especial is not only one of the few beer brands showing growth, but it is the "No. 4 beer brand" in the entire beer category with tremendous upside, Newlands told Jim Cramer. The growth over the years has been "fantastic," but the Modelo brand is barely "scratching the surface" and the "sky is the limit," Newlands said. Constellation will launch a portfolio of seltzers to gain exposure to the fast-growing category, the CEO said.
(STZ) shares are on pace for a two-day winning streak, after the company’s fiscal third-quarter earnings report largely beat expectations. The company said Wednesday that earnings per share of $1.85 topped consensus estimates calling for $1.82, while sales of $2 billion edged out expectations of $1.95 billion. Some Wall Street analysts are cheering the quarterly results, but the Canopy Growth investment remains a concern for many.
Constellation Brands beat fiscal Q3 earnings views while raising its full-year guidance as loss from its marijuana investment eased.