- Canadian pot stocks shot up notably on Wednesday, April 28.
- Stocks of cannabis producers Aphria Inc (TSX:APHA) and HEXO Corp. (TSX:HEXO) rocketing by about nine and 13 per cent, respectively.
- HEXO stocks skyrocketed by 177 per cent in the last one year.
Canadian pot stocks shot up on Wednesday, April 28, with stocks of cannabis producers Aphria Inc (TSX:APHA) and HEXO Corp. (TSX:HEXO) rocketing by about nine and 13 per cent, respectively.
This surge came after Bank of America reportedly resumed its coverage of some cannabis stocks, which, in turn, boosted the price of other marijuana shares as well.
Let's see how stocks of HEXO and Aphria did amid this rally.
HEXO Corp (TSX:HEXO)
Stocks of HEXO Corp, a producer of innovative cannabis products, skyrocketed by 177 per cent in the last one year and by about 74 per cent year-to-date (YTD).
On Wednesday, the company announced that Masson-Angers, its flagship cultivation campus, has been certified by the Control Union Medical Cannabis Standard GACP (CUMCS-GACP). The CUMCS-GACP certification is the leading accreditation standard for the cultivation of medical cannabis.
1-year chart of stock performance of HEXO (Source: Refinitiv/Thomson Reuters)
In Q2 FY21 ending January 31, 2021, the cannabis producer's revenue from the sale of goods was C$ 45.7 million, up from C$ 23.8 million in Q2 FY20. The company also posted a gross profit of C$ 18.6 million in the latest quarter.
Aphria Inc (TSX:APHA)
Aphria Inc is involved in the production and sales of medicinal and recreational cannabis.
Aphria holds a price-to-book (P/B) ratio of 4.139 and its market cap is C$ 6.2 billion, as per the TMX data. The stock soared by a notable 291 per cent in the past one year, while its YTD growth stands at 124 per cent.
1-year chart of stock performance of Aphria (Source: Refinitiv/Thomson Reuters)
In the third fiscal quarter ending February 28, 2021, the company achieved a net revenue of C$ 153.6 million, which was up from C$ 144.4 million in Q3 FY20. Its adjusted EBITDA also increased to C$ 12.7 million in the latest quarter.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.