E Should You Invest In Medical Cannabis Stock Tilray?

According to Grand View Research, a leading business consulting firm specializing in market analysis, the cannabinoids market is expected to grow at a compound annual growth rate of about 20.4% through 2027. In 2019, the market was valued at $2.4 billion and then grew to an estimated value of $4.5 billion in 2020.

On the other hand, the overall cannabis industry was valued at about $20.5 billion in 2020 and is expected to top $90.4 billion by 2026. The size of the opportunity in the cannabis industry is enormous and even the smallest players stand to benefit.

From a valuation perspective, Tilray shares trade at a price-book value of 4.35. It is one of the few marijuana stocks listed at Nasdaq making it accessible to more investors. Analysts expect earnings to grow by 32% this year and 82% next year. Therefore the company could return to profitability soon for the first time since 2018.

Its valuation metrics could improve significantly. Furthermore, Tilray’s earnings are expected to grow at an average of about 49% annually for the next five years. This makes it a perfect candidate for those hunting for long-term growth stocks.

Conclusion

As investor interest soars, the cannabis industry gains more on-the-ground traction in mainstream markets. Today, more and more industry-leading companies are beginning to endorse the legalization of marijuana in the United States.

Due to the contemporary trends taking place in the American market, cannabis companies can expect an almost imitation of the trends which occurred in the Canadian market, advancing companies like Tilray. The stock offers immense growth opportunities and the current pullback may have created a great entry point.

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Disclosure: The material appearing on this article is based on data and information from sources I believe to be accurate and reliable. However, the material is not guaranteed as to accuracy nor does ...

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Wendell Brown 3 months ago Member's comment

There really isn't any genuine analysis here...

William K. 3 months ago Member's comment

This is presuming that neither Biden nor Trump somehow turn against pot completely. Rational thinking seems to be missing.