STZ-B - Constellation Brands, Inc.

NYSE - Nasdaq Real Time Price. Currency in USD
180.86
-3.07 (-1.67%)
At close: 3:47PM EST
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Previous Close183.93
Open178.91
Bid0.00 x 1100
Ask182.14 x 2200
Day's Range179.13 - 181.11
52 Week Range151.40 - 214.51
Volume1,634
Avg. Volume285
Market Cap34B
Beta (3Y Monthly)0.65
PE Ratio (TTM)45.29
EPS (TTM)3.99
Earnings DateN/A
Forward Dividend & Yield2.72 (1.48%)
Ex-Dividend Date2019-11-07
1y Target EstN/A
  • Cannabis stocks slammed as analysts say Canopy’s new CEO faces big challenges
    MarketWatch

    Cannabis stocks slammed as analysts say Canopy’s new CEO faces big challenges

    Cannabis stocks fell Tuesday, as analysts weighing in on Canopy Growth’s new chief executive took a cautious stance, highlighting the continuing challenges facing the company.

  • Barrons.com

    Marijuana Stock Canopy Growth’s New CEO Isn’t a Reason to Buy Now

    Constellation Brands Chief Financial Officer David Klein will be Canopy Growth’s next CEO. But that doesn’t mean it’s time to buy the stock, according to an analyst at MKM Partners.

  • Cannabis market leader Canopy Growth names Constellation Brands’ CFO as its new CEO
    MarketWatch

    Cannabis market leader Canopy Growth names Constellation Brands’ CFO as its new CEO

    Canopy Growth Corp. said Monday it has named David Klein, currently chief financial officer at its biggest shareholder, Constellation Brands Inc., as its new chief executive, taking over from Mark Zekulin on January 14.

  • Barrons.com

    Canopy Growth Jumps 14%, and Two More Numbers to Know

    STOCKSTOWATCHTODAY BLOG Three numbers to start your day: Paul Volker Was 92 When he Passed Away on Sunday Volker was the former chairman of the Federal Reserve and a towering figure in finance. He famously took over America’s central bank in 1979 when inflation was well past double digits and managed to tame price increases.

  • Canopy Growth Soars As Constellation Brands CFO Named CEO Of Marijuana Company
    Investor's Business Daily

    Canopy Growth Soars As Constellation Brands CFO Named CEO Of Marijuana Company

    Canopy Growth soared Monday on the news Constellation Brands CFO David Klein will become CEO of the troubled Canadian cannabis producer.

  • With Heineken and others ceasing production, Minnesota’s 3.2% beer supply is running dry
    American City Business Journals

    With Heineken and others ceasing production, Minnesota’s 3.2% beer supply is running dry

    Two major beer producers recently announced they will stop making 3.2% alcohol beer now that Minnesota is the only state with a 3.2 beer law still on the books.

  • Benzinga

    Canopy Growth Analyst Says Constellation Brands Likely To Bid On Cannabis Company's Equity

    Canopy Growth (NYSE: CGC) shares jumped Monday when the company announced the appointment of Constellation Brands (NYSE: STZ) CFO David Klein as the cannabis company's CEO. Cantor Fitzgerald’s Pablo Zuanic reiterated a Neutral rating on Canopy Growth with a CA$18.90 ($14.27) price target. Zuanic was surprised it has taken this long for Canopy Growth to hire a new CEO after Bruce Linton's departure, the analyst said in a Monday note.

  • Barrons.com

    Canopy Growth Has a New CEO. Here’s What He Needs to Do Now.

    A top task facing Canopy Growth’s newly-announced chief executive will be to control the cannabis company’s swelling expenses. Good thing that David Klein has been the financial chief at the pot producer’s big shareholder, (STZ) because his bud-counting skills will be tested by the costs of the new beverages, vapes and chocolates that Canopy starts selling in Canada next month. Investors seem happy that a financial guy is taking charge of (WEED) (ticker: CGC), whose founder Bruce Linton was forced out in July by Constellation (STZ) after the pot pioneer’s losses ballooned.

  • Barrons.com

    Marijuana Stock Canopy Growth Is Soaring Because It Finally Has a New CEO

    David Klein, executive vice president and chief financial officer of Constellation Brands, will succeed Canopy Growth CEO Mark Zekulin on Jan. 14. The news ends a search that began in early July.

  • Constellation Exec Named Canopy CEO as Takeover Odds Grow
    Bloomberg

    Constellation Exec Named Canopy CEO as Takeover Odds Grow

    (Bloomberg) -- Canopy Growth Corp., the world’s most valuable cannabis company, has appointed Constellation Brands Inc.’s finance head as its chief executive officer, raising the odds that the alcohol giant will buy Canopy outright.David Klein, currently chief financial officer of Constellation and chair of Canopy’s board of directors, will become the pot company’s CEO effective Jan. 14, Canopy announced Monday. Constellation owns approximately 35% of Canopy.Klein will replace Mark Zekulin, who has been leading the company as its sole CEO since Bruce Linton was forced out of his co-CEO role in July amid increasing pressure to turn a profit. Canopy shares rose as much as 13% in Toronto, while Constellation dipped 1.3% in New York.“Canopy Growth sits at the forefront of one of the most exciting new market opportunities in our lifetime,” Klein said in a statement. “I look forward to working with the team to build on the foundation that has been laid, to develop brands that strongly resonate with consumers, and to capture the market opportunity before us.”In an interview at Bloomberg’s New York office, Linton said he believes Constellation is preparing to acquire the remainder of Canopy to take advantage of its “disruptive” portfolio of cannabis beverages and its research into marijuana’s medical applications.“All these things are mega medium- to long-term outcomes, and Constellation has the best seat in the house to see that,” Linton said. “What they may say is, ‘We can actually buy the whole thing and about two years after we buy it, sell the medical division for more than we paid for the whole thing.”’Given Constellation’s “opportunistic mindset,” Cantor Fitzgerald analyst Pablo Zuanic said he’d assign more than two-thirds probability that it will bid for the rest of Canopy in the near term. “On the argument of an improving outlook for the cannabis industry, we think STZ could justify a deal,” he wrote in a note, using Constellation’s stock ticker.However, it won’t be an easy decision given the state of Constellation’s balance sheet, the earnings-per-share dilution that would result from a deal and a likely near-term hit to its share price, he said.Constellation said in a recent filing that it doesn’t plan to make additional cash contributions to Canopy beyond the possible exercise of its existing warrants.Canopy’s share price is down 63% since its recent high on April 29, and the company has said it won’t generate positive earnings before interest, taxes, depreciation and amortization until fiscal 2022.Klein’s appointment is “another step on Canopy’s path to profitability,” said Bloomberg Intelligence analyst Kenneth Shea. “Klein brings extensive consumer-products industry experience and financial acumen to Canopy during a period of investor anxiety over the company’s struggles to rein in spending and align itself for sustainable Ebitda profitability.”Zekulin will step down on Dec. 20, Canopy said. Klein will be replaced as chairman when he becomes CEO.(Updates stock price in paragraph 3, adds comments from Bruce Linton in paragraphs 5-6)To contact the reporter on this story: Kristine Owram in New York at kowram@bloomberg.netTo contact the editors responsible for this story: Brad Olesen at bolesen3@bloomberg.net, Courtney Dentch, David ScanlanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Stocks - Canopy Growth, ArQule Rise in Premarket; Microsoft Edges Lower
    Investing.com

    Stocks - Canopy Growth, ArQule Rise in Premarket; Microsoft Edges Lower

    Investing.com -- Stocks in focus in premarket trade on Monday, 9th December.

  • UPDATE 3-Constellation tightens grip on Canopy with CEO appointment
    Reuters

    UPDATE 3-Constellation tightens grip on Canopy with CEO appointment

    Constellation Brands Inc finance head David Klein will take over in January as chief executive officer of pot producer Canopy Growth Corp, hardening up the Corona beer maker's control of a company into which it has sunk $4 billion. Klein was appointed Canopy chairman in October after Constellation booked a $430 million net loss related to the company. Linton had said that he was fired from the top job, days after Constellation expressed its disappointment over Canopy's 2018 results.

  • Canopy Growth Appoints Constellation CFO As The Cannabis Company's New CEO
    Benzinga

    Canopy Growth Appoints Constellation CFO As The Cannabis Company's New CEO

    Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) announced Monday that David Klein has been hired as the company’s new CEO, effective Jan. 14, 2020. As previously announced, interim CEO Mark Zekulin will resign from the position and also from his seat on the company’s board of directors, effective Dec. 20. Klein has sharpened his leadership skills for the last 14 years at Constellation Brands (NYSE: STZ), covering CPG and beverage alcohol industries.

  • Is There An Opportunity With Constellation Brands, Inc.'s (NYSE:STZ) 42% Undervaluation?
    Simply Wall St.

    Is There An Opportunity With Constellation Brands, Inc.'s (NYSE:STZ) 42% Undervaluation?

    Today we will run through one way of estimating the intrinsic value of Constellation Brands, Inc. (NYSE:STZ) by...

  • Reuters

    Constellation tightens grip on Canopy with CEO appointment

    Klein was appointed Canopy chairman in October after Constellation booked a $430 million net loss related to the company. Linton had said that he was fired from the top job, days after Constellation expressed its disappointment over Canopy's 2018 results. Canopy's U.S.-listed shares rose 4.5% to $19.49 in trading before the bell, while Constellation shares were little changed.

  • Market Exclusive

    Market Morning: Disney Epilepsy Warning, Banana Fiasco, Constellation Cannabis Concerns

    Disney’s Star Wars Episode IX Discriminates Against Epileptics Disney’s (NYSE:DIS) new Star Wars movie Star Wars: The Rise of Skywalker, could be dangerous for those suffering from epileptic seizures. The Epilepsy Foundation said on Friday that Walt Disney Studios had reached out to notify the epilepsy community of sustained flashing lights in the movie that […]The post Market Morning: Disney Epilepsy Warning, Banana Fiasco, Constellation Cannabis Concerns appeared first on Market Exclusive.

  • GlobeNewswire

    Constellation Brands Names Garth Hankinson Executive Vice President and Chief Financial Officer

    Constellation Brands, Inc. (NYSE:STZ and STZ.B), a leading beverage alcohol company, announced today that Garth Hankinson has been promoted to Executive Vice President and Chief Financial Officer (CFO), effective January 13, 2020. Hankinson succeeds David Klein, who will leave his role with Constellation Brands on January 13 to become Chief Executive Officer at Canopy Growth, which is anticipated to be effective January 14.

  • TheStreet.com

    Canopy Growth Names Constellation Brands' Klein as CEO

    Canopy Growth CGC named David Klein as CEO, effective Jan. 14. Klein comes from Constellation Brands , where he served as chief financial officer. Klein replaces Canopy Growth CEO Mark Zekulin, who will to step down and resign his seat on the company's board, effective Dec. 20.

  • A winemaker is wooing millennials as Americans back away from the bar
    Yahoo Finance

    A winemaker is wooing millennials as Americans back away from the bar

    David Duncan, Silver Oak Cellars CEO, told Yahoo Finance his brand is actually increasing in popularity with millennials.

  • Investing in Canopy Growth Stock Is a Risky Game of Follow the Leader
    InvestorPlace

    Investing in Canopy Growth Stock Is a Risky Game of Follow the Leader

    Canopy Growth (NYSE:CGC) is unquestionably one of the leading names in the cannabis sector. There are some good reasons for that. It is one of the sector's largest growers. And while oversupply has become a prevailing theme in the cannabis sector, at some point this should become a competitive advantage.Source: Shutterstock Canopy also has a boat load of cash from Constellation Brands (NYSE:STZ). As of Sep. 30, CGC had holdings of 700 million CAD in cash, cash equivalents and marketable securities on hand, largely coming from Constellation's investment.For these reasons, and more, Canopy Growth should be a survivor of the cannabis wars. This was a point echoed by InvestorPlace contributor Todd Shriber when debating if the recent boost in Canopy stock was the beginning of something real, or just a dead cat bounce.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI'm not sure if that matters. The entire cannabis sector is out of favor with investors. Which means Canopy is looking more and more like the tallest of the seven dwarfs. And that's not an enviable position to be in. There Is Still a Massive Opportunity in CannabisIn a report released in May 2019, Grand View Research, Inc. estimates the size of the global legal marijuana market to reach $66.3 billion by the end of 2025. What was even more eye-opening about the report is that it says the industry is expected to expand at CAGR of 23.9% during that time. * 7 Tech Stocks You Should Avoid Now However, 2025 is a long way off. And that's why it's important for investors to understand why the cannabis industry is still a risky proposition. There Is Still a Lot of Risk with Canopy Growth StockThe problem with Canopy Growth stock is the same problem that besets all marijuana stocks. There are many things we don't know. One question is when will the fundamentals of supply and demand get on track in Canada? Another question is when will legalization actually become a reality in the U.S.? The first question is in the process of resolving itself. The latter is less clear.When investors were dreaming of becoming marijuana millionaires in 2018, they ignored the law of unintended consequences. Sure, there was pent-up demand. And the major cannabis companies, like Canopy Growth, were going to offer a product that was a safer and cost-effective alternative to the black market.All that was required was legalization. And that's where reality set in. Full legalization in the U.S. is still a way off. And even in Canada, which achieved full legalization in October of 2018, the regulatory process has bogged down the process of getting supply chains in order. This meant that bigger was not better and Canopy, among others, got stuck with too much supply. Constellation May Also Be Losing PatienceConstellation has invested $4 billion into Canopy Growth, giving it a 37% stake in the company. However, as Will Healy wrote in a recent article, this investment does not come without strings attached. And Constellation may be ready to pull on those strings.Simply put, Constellation is seeing falling revenues in their core markets and they need to start seeing a return on their investment in Canopy Growth. And as Healy pointed out, a falling CGC stock price creates the not completely unreasonable scenario where Constellation may decide to buy Canopy Growth outright. The Bottom Line on Canopy Growth StockThere's a ton of risk that comes with Canopy Growth. But there's a ton of risk with any cannabis stock. If you look at the stock of any of the major cannabis companies, they're all the same. Every stock got a lift at some point in 2019, but all have since been on a downward trend.Some will make the argument then that investing in the leader is the least bad option. But a least bad option is still a bad option if the company is not ready to turn a profit. And Canopy Growth is not ready to turn a profit and may not be profitable in 2020.Nevertheless, Canopy Growth looks like it will be there when the industry does become profitable. But there are better options for speculative investors right now. And no matter if Canopy Growth is first or worst, it's a speculative stock. Invest at your own risk.As of this writing, Chris Markoch did not have a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy That Dominated Thanksgiving Shopping * 6 Manufacturing Stocks to Buy as the Economy Recovers * The 7 Best Cryptocurrencies to Buy as Blockchain Heats Up The post Investing in Canopy Growth Stock Is a Risky Game of Follow the Leader appeared first on InvestorPlace.

  • Cannabis 2.0 Highlights the Rewards — and Risks — of Canopy Growth Stock
    InvestorPlace

    Cannabis 2.0 Highlights the Rewards — and Risks — of Canopy Growth Stock

    The bull case for Canopy Growth (NYSE:CGC) stock at this point essentially is that the market has overreacted. Cannabis plays have been hammered this year amid disappointing revenue growth and fears of cannabis oversupply. Canopy Growth stock hasn't been spared: it's down 65% from its late April highs.Source: Jarretera / Shutterstock.com But there are reasons why its near-term results have disappointed investors. One of those reasons looks particularly key. Health Canada, that country's cannabis regulator, has been slow to approve retail licenses. Especially in Ontario, Canada's most populous province, the retail infrastructure is lagging the industry's production capacity.That should start to change in 2020. Meanwhile, Health Canada is starting to approve licenses for so-called "Cannabis 2.0" products like vapes and edibles. The hope is that more retail locations selling more products will ease the industry's overcapacity. That, in turn,will boost the revenue and margins of Canopy Growth and other cannabis producers.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt's an intriguing theory, particularly with CGC stock near its lows. But there are still valid concerns about Canopy Growth stock, even after its 60%-plus decline. And if Cannabis 2.0 can't fix Canopy Growth stock, it's difficult to see what can. The Rollout of Cannabis 2.0Last week, Canopy Growth unveiled its extensive Cannabis 2.0 portfolio.Canopy Growth is launching a broad lineup of vaping products. In partnership with Hummingbird Chocolate, Canopy is unveiling multiple chocolate products under several brands. * 7 Retail Stocks to Buy That Dominated Thanksgiving Shopping The company will release several beverages, including the trademarked Distilled Cannabis, a clear liquid made from whole cannabis flower. Its Tweed RTD (ready to drink) flavored beverages contain THC (tetrahydrocannabinol) and CBD (cannabidiol). Canopy will also offer sparkling water under its Quatreau brand, THC-heavy Deep Space carbonated beverages, and unflavored mixers.The release of such a broad portfolio highlights one of the reasons why many cannabis bulls have chosen Canopy Growth stock. The multi-billion dollar investment by Constellation Brands (NYSE:STZ,NYSE:STZ.B) in CGC last year gave it enough capital to lead the industry. Canopy's plans for Cannabis 2.0 suggest it has a real chance to do so. The Case for CGC StockMeanwhile, CGC's rivals have very real financial concerns. Aurora Cannabis (NYSE:ACB) continues to dilute its shareholders, but it still has a significant balance sheet problem. Hexo (NYSE:HEXO) has focused on edibles from the start, but it, too, needs to conserve its cash.Canopy has no such problems. Thanks to the Constellation investment, it still has 2.7 billion CAD in cash and investments. Cash burn has been an issue in recent quarters -- its cash balance shrunk over 400 million CAD in Q3 alone -- but that problem should moderate going forward.That balance sheet gives Canopy plenty of options. It can be aggressive on pricing, hoping to outlast its rivals. It could pick up assets down the line, assuming distressed companies look to sell themselves before (or after) going bankrupt.More broadly, bulls can argue that the problem with the Canadian cannabis industry is not a long-term issue. The slow pace of regulatory action has caused many of the sector's problems, including oversupply and lower-than-expected revenue.Those problems will be fixed: Canopy Growth's management projected after Q3 that supply and demand would return to balance by the middle of next year. And once that happens, optimism towards the worldwide cannabis sector will return. Few, if any, companies will be better-positioned for that opportunity than Canopy Growth. The Risks to Canopy Growth StockI'm sympathetic to that bull case, particularly with Canopy Growth stock below $20. But there are risks to CGC stock that are worth noting.First, Canopy Growth stock might be cheaper than it was, but it's not cheap. Even backing out cash net of debt, the company is valued at about $5 billion. That's roughly eight times the mean Wall Street 2020 top=line estimate.Second, it's not yet clear that Cannabis 2.0 will be the blockbuster for which bulls hope. Cannabis derivatives are expected to bring in new consumers, but consumers simply may not be interested in them.Meanwhile, CGC's competition will be intense, with the likes of Cronos (NASDAQ:CRON), Tilray (NASDAQ:TLRY), and many others similarly releasing edibles and vapes. There already are legitimate worries about Canopy's plans to be all things to all consumers, plans which so far haven't worked out. At the least, Canopy needs to execute much better than it has so far, and it has to do so without a permanent CEO in place. CGC's Margin ProblemFinally, Canopy Growth stock is significantly dependent on Cannabis 2.0 products at this point. If demand for pot derivatives doesn't materialize, the stock is in real trouble.The company's deal with Acreage Holdings (OTCMKTS:ACRGF) targets a U.S. recreational market that may not open up for years. The CBD opportunity in the U.S. looks less attractive after the struggles of the sector's leader, Charlotte's Web (OTCMKTS:CWBHF). International markets haven't changed much in the past 18 months.The long-running concern about CGC stock, and cannabis producers more broadly, is that production is going to be a low-margin, commoditized business. There's early evidence to suggest that indeed will be the case. If derivatives don't drive real revenue at high margins, the company's long-term profit outlook will drop even further.In other words, CGC stock remains a risky bet to make. And it's tough to make a compelling case as to why the bet should be made right now. CGC's execution has been weak. It has repeatedly missed its guidance. Stocks across the sector remain falling knives, and Canopy Growth stock is largely in that category.That said, I can see why cannabis bulls see CGC as attractive below $20. If its long-term opportunity is even close to what optimists believe it is, there's a path to a longer-term rally. That path requires the company's Cannabis 2.0 to be successful, meaning those products will likely define the performance of CGC stock next year.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy That Dominated Thanksgiving Shopping * 6 Manufacturing Stocks to Buy as the Economy Recovers * The 7 Best Cryptocurrencies to Buy as Blockchain Heats Up The post Cannabis 2.0 Highlights the Rewards a€” and Risks a€” of Canopy Growth Stock appeared first on InvestorPlace.

  • GlobeNewswire

    Constellation Brands to Report Third Quarter Fiscal 2020 Financial Results; Host Conference Call January 8, 2020

    VICTOR, N.Y., Dec. 04, 2019 -- Constellation Brands, Inc. (NYSE: STZ and STZ.B), a leading beverage alcohol company, announced today it will report financial results for its.

  • A Constellation Buyout Would Harm Canopy Growth Shareholders
    InvestorPlace

    A Constellation Buyout Would Harm Canopy Growth Shareholders

    Canopy Growth (NYSE:CGC), with a $6.5 billion market capitalization, and 2.7 billion CAD in cash, remains better positioned than most of its peers.Source: Shutterstock Nonetheless, like most other marijuana equities, it continues in a downtrend. Worse, little on the horizon has appeared that could keep Canopy around. This decline could bring a grim scenario that would prevent most of Canopy Growth's long-term success from accruing to shareholders.In late October, I urged investors not to trust the rally in the high-flying pot stock. It would go on to lose about one-third of its value in a post-earnings plunge before bouncing off its lows. At the current stock price near $18.70 per share, it has lost about 10% of its value since I made that prediction. Unfortunately for Canopy Growth bulls, it continues to trade below the 50-day moving average.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe company also remains in limbo in the C-suite. Canopy Growth investor Constellation Brands (NYSE:STZ) used its influence to oust the company's founder from the CEO position in July. Since that time, it has not found a permanent replacement. As InvestorPlace's Will Ashworth mentions, it may even miss its self-imposed deadline to appoint a new CEO by the end of 2019. Constellation and Canopy GrowthStill, Constellation has made Canopy Growth what it is today. Thanks to Constellation's investments, the cannabis name still holds one of the strongest balance sheets in the industry. Canopy's size and remaining funds leave it well-positioned despite analyst projections of continuing losses. * 9 Tech Stocks You Wish You'd Bought During 2019 However, this could go poorly for shareholders. The reason why is that stock declines place Constellation in a better position to buy Canopy Growth outright.Yes, Constellation recently stated it would not provide additional cash outside of the exercise of warrants. Nonetheless, as things stand now, Constellation already owns 38% of the company. Moreover, as people drink less, revenues for STZ have fallen, and profits have not increased significantly. Hence, Constellation needs cannabis to return it to consistent growth. Buyout DangerThis could hurt investors as any buyout could come at a much lower stock price. Despite losing nearly two-thirds of its value since the spring, Canopy trades at levels too high for fundamentals to rescue it. The stock sells at almost 25 times sales. That far exceeds Constellation's price-to-sales ratio of 4.3 and that of Altria (NYSE:MO), which trades close to 4.7 time sales.I do not think Canopy will fall to a comparable P/S ratio anytime soon. However, in a buyout situation, the growth investors who bought Canopy Growth would exchange it for a slower-growth, dividend-producing investment. This means equity losses, which mounted quickly, could take years to recover.As mentioned before, I think Constellation's cash will help Canopy Growth weather a downturn in cannabis equities. However, the potential for a buyout at a lower price means reduced profits or steeper losses for shareholders. For this reason, I would think twice about investing in marijuana with Canopy Growth. The Bottom Line on Canopy GrowthA buyout by Constellation could hamper the growth potential of Canopy. Marijuana equities have sold off sharply since the spring as a weed supply glut and legal barriers have forced cannabis companies to revise revenue and earnings forecasts downward. This has hammered marijuana stocks, Canopy Growth included.However, Constellation's firing of Canopy's previous CEO points to its power in the company. Moreover, Constellation needs marijuana to reinvigorate sales and earnings growth. Such conditions point to a likely takeover, especially if the pot stock falls to a much lower price.Such a move means two things for current shareholders. Not only will they have sustained massive losses in a volatile stock, but they will also have to recover those losses in a slow-growth equity. This means it could take years to recover their investment.Since the attributes of Canopy Growth may not accrue to shareholders, investors should consider avoiding this stock.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Tech Stocks You Wish You'd Bought During 2019 * 5 Under-the-Radar Marijuana Stocks With Over 100% Upside * Watch These 5 STARS Stocks as They Change the Future The post A Constellation Buyout Would Harm Canopy Growth Shareholders appeared first on InvestorPlace.

  • Why Canopy Growth Stock Could Rebound Tremendously in 2020
    InvestorPlace

    Why Canopy Growth Stock Could Rebound Tremendously in 2020

    The past two years have been the best of times and the worst of times for Canada's biggest cannabis producer, Canopy Growth (NYSE:CGC). In 2018, Canopy Growth stock exploded onto the scene as a hugely popular growth company that was a pioneer of the potentially massive legal cannabis market. CGC stock roared from about $20 to roughly $60, thanks to the nationwide legalization of cannabis in Canada as well as a multi-billion dollar investment from alcoholic beverage giant Constellation Brands (NYSE:STZ).`Source: Shutterstock But 2019 has played out very differently for Canopy Growth stock. Canopy has gone from a hugely popular growth company to a poster child for bubble stocks, as the stock's stretched valuation has crumbled under the weight of a choppy legal cannabis rollout in Canada, slower-than-expected cannabis legalization elsewhere, and an array of cash burn, margin, and profitability concerns.Ultimately, CGC stock dropped from a $50-plus high in early May to a sub-$20 price tag in December.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFortunately for the owners of Canopy Growth stock, 2019 is almost over, and 2020 could usher in a new (and better) era for Canopy Growth. Specifically, there are three reasons to believe that CGC stock will rebound a great deal over the next 12 months. Further, the numbers indicate that if the tide does turn in the near-term, Canopy Growth stock could nearly double. Three Reasons Why Canopy Growth Can ReboundFirst, the conditions of the cannabis market in Canada should improve. Legal fees, distribution hiccups, and supply constraints have killed demand in the legal Canadian cannabis market in 2019. Legal fees will stick around. But distribution hiccups should fade in 2020 as producers gain more experience. Canopy's supply constraints should also ease, since Canopy has dramatically expanded its capacity and increased its growth potential. The launch of new marijuana products, including vapes, edibles, and beverages, should supercharge demand for legal cannabis in 2020. * 9 Tech Stocks You Wish You'd Bought During 2019 Second, the U.S. should make meaningful progress towards cannabis legalization. Canopy has made a big bet on the legalization of cannabis in the U.S. Unfortunately, very little progress was made on that front in 2019. But in November, the House Judiciary Committee approved the Marijuana Opportunity Reinvestment and Expungement (MORE) Act. While the vote was not super meaningful by itself, it sets the stage in 2020 for the Senate to pass the MORE Act and make weed completely legal in the U.S.Third, the positioning of CGC stock has improved in every way. Coming into 2019, Canopy Growth stock was flying high, investors were bullish on it, analysts' estimates for CGC were being hiked to unreachable levels, and its valuation was at historic highs.The stock was positioned to crater on bad news. Exiting 2019, CGC stock is crashing to multi-year lows, investor sentiment towards Canopy Growth stock is bearish, Wall Street estimates have tumbled to more beatable levels, and its valuation is as low as it's been since Canada legalized cannabis. Now CGC stock is positioned to roar on good news. Canopy Growth Stock Could Double in 2020Canopy Growth's long-term profit outlook indicates that CGC stock should trade around $34 in 2020. So if the Street becomes more upbeat on Canopy Growth stock, then the shares could nearly double over the next 12 months.My estimates, based on market data from BDS Analytics, estimate Canopy Growth's share of the legal global cannabis market at just under 2% in 2019. But CGC has a minimal presence outside of Canada, and zero presence in the world's biggest market, the U.S. The legal global cannabis market is projected to grow at a nearly 25% annualized clip to $32 billion by 2022. Yet most market research firms peg the global addressable market for cannabis at somewhere north of $200 billion.Thus, the legal cannabis market will keep growing at a robust rate into 2030. Realistically, I think the market will increase about 15% per year to over $90 billion by 2030. Canopy should control about 10% of that market, with expansion in the U.S. market accounting for the bulk of its market share gains. If CGC reaches that plateau, its 2030 sales will be about $9 billion-plus.At the same time, its gross margins should improve as demand for its products ramps up and black market competition eases. Sustained high revenue growth will increase its profitability. Its profit margins should ultimately be very impressive, reaching levels similar to those of the tobacco and alcoholic beverage industries.Putting all that together, I estimate that Canopy's earnings per share could reach $5 by 2030. Based on a forward earnings multiple of 16, which is average for the market, that yields a $100 price target for CGC stock by 2029. Discounted back by 10% per year, that equates to a 2020 price target of about $34. The Bottom Line on CGC StockAs we head into the final month of what has been a disastrous year for Canopy Growth stock, there's reason to be cautiously optimistic that the shares will rebound tremendously in 2020. Those who buy CGC below the $20 level should be rewarded handsomely in the long-run.As of this writing, Luke Lango was long CGC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Tech Stocks You Wish You'd Bought During 2019 * 5 Under-the-Radar Marijuana Stocks With Over 100% Upside * Watch These 5 STARS Stocks as They Change the Future The post Why Canopy Growth Stock Could Rebound Tremendously in 2020 appeared first on InvestorPlace.