You probably wouldn’t want to buy stock in an unprofitable company that’s posting declining trailing revenue while also crashing in value by more than 62% over the course of the year — especially when there are several sector competitors that don’t have these dubious distinctions…
Aurora Cannabis (NYSE:ACB) is the stock sporting all of these red flags today. Thankfully, there are a few companies that are more appealing to investors who want to get in on the marijuana market gold rush that may electrify 2021. They’re by no means perfect picks, but in the wild world of marijuana investing, they’re as close as they come.
1. Cresco Labs
U.S.-based Cresco Labs (OTC:CRLBF) is on an accelerating growth trajectory. Unlike Aurora Cannabis, its trailing revenue has increased by a sharp 176.4% this year, won in part by its strong coverage of wholesale and consumer retail locations in some of the most populous U.S. states. And the company’s earnings are expanding alongside its revenue; it reported a record $46.4 million in adjusted earnings in the most recent quarter.
Cresco has one problem in common with Aurora: Unprofitability. Nonetheless, Cresco has spent the year making prudent cuts to its selling, general, and administrative (SG&A) expenses. So, this company might even post profits in the middle of next year, a time when Aurora will probably still be struggling.
Aphria‘s (NASDAQ:APHA) quarterly revenue growth of 14.7% year over year is decent, but it won’t turn any heads. On the other hand, it has many favorable traits that other cannabis companies lack, including having more than a full year of consecutive and positive earnings, not to mention holding the No. 3 spot in the Canadian market by revenue and the No. 1 spot in the Canadian market for vaporizers.
Aphria also has a significantly more diverse revenue base than its peers. This was bolstered by its recent acquisition of…
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