6 Canadian pot stocks to buy that can grow like a weed

Summary

  • The 2018 legalization of recreational cannabis in Canada saw pot producers in the country note a massive boom in their businesses.
  • Now, with the US looking at a federal legalization of adult recreational marijuana use, pot manufacturers could be poised to another round of record sales surge.
  • Investors exploring pot stocks in the hopes of benefiting from this possible export boom could take a look at the following options

The 2018 legalization of recreational cannabis in Canada saw pot producers in the country note a massive boom in their businesses.

Now, with the US looking at a federal legalization of adult recreational marijuana use, pot manufacturers could be poised to another round of record sales surge.

Investors exploring pot stocks in the hopes of benefiting from this possible export boom could take a look at the following options.  

 

  1. Aurora Cannabis Inc (TSX:ACB)

Aurora Cannabis, a leading producer of medical and consumer cannabis, is known for its innovative products globally. The company posted a market cap of C$ 1.8 billion and a stock price of C$ 9.25 on Thursday, July 15.

In the third quarter of fiscal 2021, Aurora saw a 19.5 per cent year-over-year (YoY) decline in its total cannabis net revenue (before provisions) of CS 58.4 million. Its medical cannabis net revenue for the latest quarter stood at C$ 36.4 million, up 17 per cent YoY .

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  1. Decibel Cannabis Company Inc. (TSXV:DB)

Decibel Cannabis Company debuted on the Toronto Stock Exchange Venture (TSXV) in January 2019. It presently posts a market cap of C$ 113 million and a stock price of C$ 0.325, as of July 15.

DB stocks have expanded by 170 per cent in the last six months, and climbed by a whopping 306 per cent in the last one year. The stock price also rose about 364 per cent on a year-to-date (YTD) basis.

On the financial front, Decibel saw its net revenue grow by a record 151 per cent YoY to C$ 12.6 million in the first quarter of 2021.

 

  1. Canopy Growth Corporation (TSX:WEED)

Canopy Growth stock increased by about seven per cent in the last nine months, while its one-year growth stood at nine per cent. At a closing price of C$ 25.64, its scrips are about 40 per cent above its 52-week low of C$ 18.44 (October 2, 2020).

Its market cap stood at about C$ 10 billion, as per TMX.

Canopy’s net revenue of C$ 148 million in Q4 FY21 was up by 38 per cent YoY,  driven primarily by the extensive growth in all its consumer products businesses.

 

  1. Auxly Cannabis Group Inc. (TSX:XLY)

Auxly stocks were priced at C$ 0.275 apiece on July 15, hovering about 129 per cent above its 52-week low of C$ 0.12 (September 24, 2020) and 46 per cent below its 52-week high of C$ 0.51 (February 11, 2021).

At this closing price, the scrip was also registering a growth of nearly 31 per cent for the last nine months, and that of nearly eight per cent on a year-to-date (YTD) basis.

Auxly posted net revenues of about C$ 10 million, up by abut one per cent YoY, for the quarter ending March 31, 2021.

 

  1. Cronos Group Inc. (TSX:CRON)

Cronos Group Inc, which sells recreational cannabis products through some its flagship brands, got listed on the TSX in May 2014. Its stocks closed at C$ 9.5 apiece on July 15, posting a market cap of C$ 3.5 billion.

The stock has inflated about 29 per cent in the last nine months, and jumped over 10 per cent in the past year.  

Cronos Group’s net revenue of US$ 12.6 million surged by US$ 4.2 million YoY in Q1 2021. The increase, the company said, was primarily motored by steady growth in the adult-use pot market in Canada, medical marijuana sales in Israel, and increased sales in the US.

 

  1. HEXO Corp (TSX:HEXO)

HEXO Corp, with a market cap of about C$ 850 million, saw its stocks close at a value of C$ 5.6 on July 15. At this price, the stock was about 89 per cent above its 52-week low of C$ 3.04 (October 30, 2020).

HEXO stocks have grown by about 45 per cent in the past year, and inflated by about 23 per cent YTD.

HEXO reported a two per cent YoY rise in its total net sales for the third fiscal quarter ending April 30, 2021. For the same quarter, HEXO’s non-beverage adult-use net revenues in Canada (barring Quebec) catapulted by 169 per cent YoY.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.

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