Today’s infographic comes to us from Evolve ETFs, and it shows what investors should know as the legal cannabis sector comes out of the dark.
The original article has been edited here for length (…) and clarity ([ ])
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As recreational legalization in Canada approaches this summer, the 4 marijuana stocks on our list today have plans to meet the upcoming demand. If the marijuana sector continues its rally, these stocks…are expected to generate significant EBITDA growth over the coming year.
To take advantage of another potential upswing in the market, we have selected 5 cannabis companies, which analysts believe are undervalued. The Canadian marijuana stocks on our list today currently have 100% upside on average according to analysts, indicating that these stocks could post strong returns in the near-term.
As recreational legalization of marijuana in Canada approaches this summer, these companies have plans to meet the upcoming demand. If marijuana continues its rally, the Canadian marijuana stocks on our list could see strong returns in both the short and long term.
The top spot in the Canadian cannabis industry belongs to Canopy Growth Corp. but some competitors, such as Aurora Cannabis Inc., have the scope, scale, and differentiation to take on the market leader. Of these two which stock is more attractive?
Today we will be comparing the current and future prospects of Aurora Cannabis and Aphria Inc. – the only two companies with the scope, scale, and differentiation to take on Canopy Growth.
Due to the early stages of the cannabis industry and its growth prospects, investors have not expected cannabis companies to generate positive earnings. Instead they have valued the stocks primarily on hope for a lucrative future. That being said, however, we have identified 4 Canadian cannabis stocks that are expected to generate positive earnings in the next 12 months. If they live up to their earnings expectations, it could begin a time when investors look for companies with sustainable growth prospects, as opposed to those that are expected to have the highest short-term revenue growth.
Like technology, the battery metals and cannabis sectors have upside attached to secular trends that are changing our world. As a result, all of these sectors are poised to continue expanding at rapid rates.
Being able to sell products at a high margin is a good sign of efficiency. Doing so leaves more cash to dedicate to other expenses and service debt obligations. Identifying undervalued companies with strong gross margins in the young marijuana industry is important, given the upcoming Canadian legalization of marijuana for recreational purposes in 2018. Today we have identified 4 Canadian marijuana stocks that have underperformed their peers despite healthy gross margins.
Investing in marijuana-related stocks is a high-risk, high-reward game due to all the uncertainties surrounding the legalization of the drug. Companies that do succeed, however, have potential to bring large capital gains. That being said we have identified five Canadian marijuana stocks with the biggest upside potential, according to consensus analyst price targets.
Identifying companies with high gross margins in the young marijuana industry is important because operating costs are likely to decrease as the industry matures, leaving these companies with high earnings potential. Today we have identified five Canadian marijuana stocks with gross margins well above their industry peers.
The search is now on for the next junior marijuana stock that is ripe for acquisition. Will it be one of the 5 we’ve identified based upon their high revenue growth profiles?