Is Canopy Growth (TSX:WEED) a cannabis stock to buy and hold?

2 min read | October 14, 2021 11:07 AM EDT | By Raza Naqvi

Is Canopy Growth (TSX:WEED) a cannabis stock to buy and hold? — Image source: © 2021 Kalkine Media Inc.

What could be Canopy Growth's (TSX:WEED) benefit from the deal?

Canopy Growth could expand its presence in the US markets if it acquires Wana Brands. The Colorado-based company is a leading brand in North America, and its makes cannabis-induced gummies which are quite popular in Canada.

Wana Brands looks to expand in nine more American states by the end of 2022, and it already has a presence in 12 US states.

Canopy Growth Corporation Stock

According to a Data Bridge Market Research report, the CBD Edibles Market is expected to register a compound annual growth rate (CAGR) of 24.3 per cent between 2020 to 2027, and it could value at US$ 5160 million.

Bottom line

In the first quarter of fiscal 2022, Canopy Growth achieved 23 per cent year-over-year (YoY) revenue growth. Meanwhile, the gross margin percentage increased by 20 per cent YoY.

Notably, the cannabis producer saw a massive increase in its net income by 404 per cent to C$ 390 million.

Also Read: 5 best TSX Cannabis stocks under C$25 to buy

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