- Canada has some interesting cannabis stocks that are some of the biggest of its healthcare sector
- The idea with marijuana stocks might be to think long-term
- Its legalization at the federal level in the US seems inevitable and some European countries too might jump onto the green bandwagon
Canada has some interesting cannabis stocks that are some of the biggest of its healthcare sector. Over the past nine months, these stocks have seen some volatility. However, the idea with marijuana stocks might be to think long-term.
Its legalization at the federal level in the US seems inevitable, although it’s hard to say when. Some European countries too might be jumping onto the green bandwagon. So, you might call this a budding industry, pardon the pun.
Let’s look at some TSX pot stocks.
Canopy Growth Corporation (TSX:WEED)
Canopy has a market cap of C$2.8 billion. Its loss over nine months is 67 per cent. However, over the last week it is up 11.5 per cent.
WEED closed Wednesday, May 18, at C$7.18, 14 per cent better than its 52-week low of C$6.29.
HEXO Corp (TSX:HEXO)
HEXO is easily the smallest company by market cap on this list. Its market cap is C$167 million. Its stock closed Wednesday at C$0.365.
Down 91.5 per cent in nine months, it likely spent most of this month so far in undervalued territory. It has gained 5.8 per cent in a week and is now possibly on the brink of being undervalued.
Tilray Brands Inc (TSX:TLRY)
Tilray has a market cap of C$2.7 billion and it ended trade Wednesday at C$6.17. Its down 63 per cent in nine months.
Over the last week, it has zoomed nearly 17 per cent. Its price-to-earnings (P/E) ratio is 12.3, and this indicates the dollars to be invested to net each dollar of profit.
Organigram Holdings Inc (TSX:OGI)
The company’s market cap currently stands at C$489 million. Its stock’s last close of C$1.56 came on Wednesday.
It has fallen about 48 per cent in nine months. However, its one-week gain is 2.63 per cent. It has recovered 8.33 per cent from its one-year low of C$1.44 seen on May 12.
Aurora Cannabis Inc (TSX:ACB)
Aurora has a market cap of C$834 million. ACB’s close Wednesday was C$3.72.
It has spiked 18 per cent in the last week. Its nine-month loss is 55 per cent. Its 12-month low of C$2.87 came earlier this month on May 12. It has recovered 30 per cent from that.
Last year, in November, the US Republicans said they were on board with federal legalization and tried pushing legislation through. However, the Democrats, wanted it to go further and sought retroactive pardons. Talks fell through and this seemed to be quite a buzzkill for the industry.
Since then, these stocks have seen some volatility. These stocks have slumped over the last months, but over the last week have regained some ground.
Only TLRY has a positive P/E ratio among these. However, these stocks may be looked at on a long-term basis.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.