Is This A Buying Opportunity In The Marijuana Stocks?

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.

This week, Tracey’s joined by Stock Strategist David Borun, the editor of Zacks Marijuana Innovators portfolio, to discuss what is going on with the cannabis industry.

Did the coronavirus pandemic help, or hurt, the cannabis industry?

In many states, cannabis was considered an essential business so most dispensaries remained open. But that doesn’t mean there wasn’t disruptions to some of the businesses.

Is it Time to Buy Cannabis Stocks?

Many of the stocks plunged when the stock market plunged in February and March on coronavirus fears.

Has that created a buying opportunity in some of the shares?

Growers and Pharmaceuticals

Many investors have focused on Canadian cannabis growers in the last few years. But the pandemic has caused a shake-up among the companies with several doing layoffs and cutting expenses.

Some intriguing places to look for deals are in pharmaceuticals.

1.       Canopy Growth (CGC - Free Reportshares have fallen 46% over the last 2 years and are still down 16% year-to-date. It’s making beverages and chocolates. Is it time to buy?

2.       Aurora Cannabis (ACB - Free Reportrecently announced more layoffs and is closing operations at 5 smaller facilities. It’s also taking a $140 inventory charge. Shares are down 45% year-to-date. Is the worst priced in?

3.       Hexo Corporation (HEXO - Free Reportis a Canadian grower trading under $1. Many investors love that but that increases the risk. It has a $314 million market cap, however, and is a play on beverages due to a joint venture with Molson Coors.

4.       GW Pharmaceuticals (GWPH - Free Reporthas the first FDA approved cannabis drug which is approved for some rare forms of epilepsy. Sales are expected to rise 82% this year and the company is forecast to see positive earnings as soon as 2021. Shares are up 19% year-to-date. Is it too late to get in?

1 2
View single page >> |

Disclaimer: Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the  more

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
John Doe 9 months ago Member's comment

Based on the given data, would you say now is a good opportunity to invest in the cannabis industry?

Lorimer Wilson 9 months ago Contributor's comment

My daily analysis of the cannabis industry (see my exclusive Cannabis Central articles on TalkMarkets) suggest that cannabis stocks have not bottomed out yet. When i jump in I will be investing exclusively in Horizon's Marijuana Companies 2x Daily Bull ETF (HMJU) to capitalize on the turnaround but do your own due diligence before doing so.