Kalkine Media explores three cannabis stocks amid a volatile market

Highlights:

• Organigram Holdings Inc. (NASDAQ: OGI) reported the highest revenue in its history in Q3 FY22.
• Cronos Group Inc. (NASDAQ: CRON) revenue rose 48 per cent YoY in Q2 FY22.
• Tilray Brands, Inc. (NASDAQ: TLRY) is likely to announce its Q1 FY23 earnings results on October 7.

The market is not stable these days, given the mounting prices and the policymakers' effort to reduce inflation under their target range. On the other hand, the investors appear to be struggling for direction amid an uncertain environment in the market.

Meanwhile, the cannabis sector seemed to be drawing attention from market participants in recent times, as evidenced by the segment's growing popularity. The sector is continuously evolving, with more states legalizing cannabis and other industry-related products.

Several major players are in the segment, and many new players are also regularly entering the arena. To name a few, Organigram Holdings Inc. (NASDAQ: OGI), Cronos Group Inc. (NASDAQ: CRON), and Tilray Brands, Inc. (NASDAQ: TLRY) are among the popular companies in the sector.

However, it is hard to predict which way the sector is moving and where it will arrive in the coming days. Although many investors from the sector and some experts anticipate that the industry will receive federal legalization, it is still doubtful when it may happen.

Let's explore the three cannabis stocks mentioned above and look at their recent performances:  

Organigram Holdings Inc. (NASDAQ: OGI)

Organigram is a licensed cannabis-producing firm with a market cap of US$ 282.33 million. The stock of the cannabis and extract-based products touched its 52-week low of US$ 0.90 last Thursday, September 22.

Talking about its stock performance, the company's stock had walked a bumpy road this year, as seen by the declines in its price. The stock price of OGI stock fell more than 48 per cent YTD and 62 per cent YoY.

The firm's gross revenue soared 90 per cent YoY to US$ 55.2 million in Q3 FY22, and from the previous quarter, it soared 26 per cent. Organigram witnessed the highest revenue in its history in the third quarter. The company's revenue was 88 per cent up YoY to US$ 38.1 million in the reported quarter.

The net loss of the Canadian cannabis firm shrank by 30 per cent YoY to US$ 2.78 million in Q3 FY22.

Cronos Group Inc. (NASDAQ: CRON)

Cronos is a leading cannabinoid firm with a market cap of over US$ 1.06 billion. The company's stock price plummeted around 27 per cent YTD and 51 per cent YoY. In the running quarter, the CRON stock price was up about one per cent. 

Cronos Group's revenue jumped 48 per cent YoY to US$ 23.1 million in the fiscal 2022 second quarter. The Toronto-based company incurred a net loss of US$ 20.33 million, down by 89 per cent YoY.

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Tilray Brands, Inc. (NASDAQ: TLRY)

Tilray is a leading player in the cannabis industry, with a market cap of US$ 1.21 billion. Meanwhile, the US-based cannabis firm's stock also touched its 52-week low of US$ 2.80 last Thursday, September 22.

The stock price of TLRY retreated 60 per cent YTD and 75 per cent YoY, while on a Q.T.D. basis, it lost more than 10 per cent. The cannabis-lifestyle firm said it would announce its Q1 FY23 earnings on October 7, 2022.

Meanwhile, the company said on September 22 that Tilray Medical's division in Italy, FL Group S.R.L, has been approved by the Italian Ministry of Health to expand its market across the country.

Tilray's annual revenue jumped 22 per cent YoY to US$ 628 million in fiscal 2022, and its Q4 FY22 revenue grew eight per cent YoY to US$ 153 million. The New York-based cannabis firm incurred a net loss of US$ 457.80 million in Q4 FY22 versus an income of US$ 33.62 million in Q4 FY21.

Bottom line:

The cannabis industry mainly comprises firms that focus on developing and researching marijuana products. Notably, 37 states in the US have now legalized marijuana in different forms.

But, as said earlier, the future of the sector is still not certain, and hence investors should tread cautiously before making any investment decisions.