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Summary
- The cannabis sector is expected to boom this year in Canada.
- At the market open on Friday, May 21, Canopy Growth stock surged by about one per cent and was trading at US$ 23.10 (9:45 AM EST).
- In the last five days, the stock jumped by 3.7 per cent and outpaced the S&P 500 Pharmaceuticals (Sub Industry) Sector.
Canadian cannabis company Canopy Growth Corporation (NASDAQ:CGC, TSX:WEED) announced on Thursday, May 20, that it is appointing celebrity chef Martha Stewart as its official strategic adviser.
At the market open on Friday, May 21, CGC stock surged by about one per cent and was trading at US$ 23.10 (9:45 AM EST). In the last five days, the stock jumped by 3.7 per cent and outpaced the S&P 500 Pharmaceuticals (Sub Industry) Sector.
In 2020, the sale of legal cannabis was up by 120 per cent year-over-year (YoY) and amounted to C$ 2.62 billion. The reason behind this surge was Canadians turning to cannabis amid strict pandemic-led public health measures.
As the pandemic continues, the sale of cannabis might rise this year and it might be the right time to invest in companies that produce and sell cannabis products in Canada and the US.
Let’s explore the trending stocks of Canopy Growth and find out if you should invest in it.
Canopy Growth & Martha Stewart
Prior to appointing her as a strategic adviser, Canopy Growth had launched a product line named Martha Stewart CBD last year in partnership with Marquee Brands.
Ms Stewart is reportedly a brand expert of cannabidiol (CBD) products and the founder of Martha Stewart Living Omnimedia. According to reports, her products can be found in over 70 million US households.
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David Klein, CEO of Canopy Growth, said that the company is committed to providing its customers with premium CBD products and that this is the reason behind deepening its ties with Ms Stewart.
Canopy Growth's Recent Stock & Financial Performance
In the past year, Canopy Growth stock grew by 25.6 per cent. Its growth in the last nine months stands at a notable 43 per cent.
On Thursday, the shares closed at C$ 22.93 apiece, 59 per cent down from a 52-week high of C$ 56.49 (February 10, 2021).
In Q3 2021, the diversified pot producer’s revenues were C$ 169.9 million, noting a jump of 34.4 million year-over-year (YoY). Its cash and cash equivalents were C$ 824.96 million.
The company holds a market cap of C$ 8.7 billion and its debt-to-equity (D/E) ratio is 0.19.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
