Cannabis stocks are turning hot once again as increased bustle in the sector gains investor attention.
This increased interest in the pot sector is evident from the rise in the S&P/TSX Cannabis Index, which is currently up 37.76 per cent year-to-date (YTD) as against the S&P/TSX Composite Index’s YTD rise of 13.88 per cent.
The US and Mexico’s efforts towards legalizing the consumption of marijuana, and an increased number of mergers and acquisitions in the sector to form larger corporations seem to be fueling the rise in pot stocks.
On that note, here are two pot stocks that investors could explore further:
Aurora Cannabis Inc (TSX: ACB)
Aurora Cannabis has been on an upward growth trajectory this month, returning about 23.25 per cent in the last one week and about 3.1 per cent in the last 30 days.
Its year-to-date (YTD) growth stands at about seven per cent.
The stock garnered investor interest after the company started the transfer of its US listed shares from NYSE to NASDAQ on Tuesday, May 25.
The company also announced on Thursday, May 27, the launch of a dedicated science and innovation business group aimed at commercializing patented technology. Aurora believes it will be central in the advancement of cannabinoid biosynthesis and plant genetics.
Aurora Cannabis saw some 2 million of its shares change hands on an average in the last 10 days, as per TSX.
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Canopy Growth Corporation (TSX:WEED)
A medicinal and recreational cannabis cultivation and marketing company, Canopy Growth Corporation is another hot cannabis stock garnering some attention from investors.
The stock clocked returns of about 11 per cent in the last one week, while its returns in the last nine months stood at 43 per cent.
Canopy scrip was priced at C$ 30.39 at the time of writing this (12.09PM EST), about 57 per cent lower than its 52-week high of C$ 71.6 (February 10, 2021).
With a market cap of C$ 11.6 billion, Canopy Growth’s average 10-day trading volume hovers above 1.19 million shares. On Monday, about 325,000 shares had already exchanged hands on the TSX since the trading session opened.
All eyes would be on the company’s financial earnings for the fourth quarter and the full year of fiscal 2021, which is set to be released on June 1.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.