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Summary
- Aphria’s stock has soared over 85 per cent, driven by the higher cannabis revenue growth in Q2FY20.
- Canopy Growth’s scrips are up 50 per cent month-to-date, uplifted by its possible entry in the US market.
- HEXO holds a year-to-date growth of 69 per cent, driven by its 103 per cent YoY revenue growth from Q1 FY21.
The cannabis industry is weighing in on the political swing that may facilitate their admission to the world’s largest stock markets. The two giant pot consuming nations – the US and Mexico – are all set to decriminalize the use of recreational marijuana at the federal level.
Stocks of Canadian cannabis companies have been soaring north on the back of the impending legalization. Apart from top pot stocks, several junior stocks too have started rising, churning attractive returns for investors.
Here are three growth pot stocks from the Toronto Stock Exchange:
Aphria Inc (TSX: APHA)
The mid-cap recreational cannabis producer has already made an entry into the US market with the help of its merger with US-based Tilray Inc (TLRY:US or NASDAQ: TLRY). The pot company was one of the highest gainers amid the ongoing green wave rally, with a one-year return of 154 per cent.
The Ontario-based company hit its all-time C$ 23.56 per share in early 2018. The pot stock is has already zoomed around 85 per cent this year and closed at C$16.58 on January 28.
In the second quarter of the fiscal year 2021, ended November 30, 2020, its net marijuana revenue surged to C$ 67.9 million, a jump of 99 per cent year-over-year (YoY). Its revenue from adult-use recreational marijuana products flew by an unprecedented rise of 149 per cent YoY to C$ 72.1 million.
Image Source: Kalkine Group @2020
Canopy Growth Corporation (TSX:WEED)
The Canopy reached a takeover deal with Acreage Holdings last year, under which it will acquire the Acreage after the US decriminalizes marijuana federally.
The large cap cannabis corporation’s share price has grown almost 54 per cent in one year.
Its stocks touched a record high price of C$ 74.45 in September 2018. The scrips have added over 50 per cent return month-to-date (MTD) and currently trading at C$51.54.
In the second quarter of FY21, ended on September 30, 2020, its net revenue was C$135.3 against C$76.6 million in Q2 FY2, a 77 per cent YoY surge.
HEXO Corp. (TSX: HEXO)
The company offers packaged cannabis products, and its popular brands include Up Cannabis and Original Stash. Its scrips have swelled by 69 per cent in 2021, with an average 30-day volume of 2.31 million.
HEXO witnessed its highest day price of C$ 45.16 in May 2019. The company sells most of the cannabis goods in the Quebec province, as per its financial report.
Its net revenue was C$ 29.5 million in Q1 FY21, ended October 31, 2020, an eye-popping growth of 103 per cent YoY. Its EBITDA recovered by 87 per cent to C$ 2.8 million in Q1 FY21, compared to negative C$ 3.3 million in Q4 FY20.
The stocks closed at C$8.34 on January 28.
