Are Canadian marijuana stocks a buy amid a rise in the cannabis sector? The cannabis industry experienced a sharp downturn in 2022, reaching new lows throughout the summer months. After spending the first half of the year in a slump, marijuana stock prices now appear to be…
gaining traction. Since peaking in February 2021, Canadian cannabis equities have generally seen large losses. However, this year’s federal cannabis legislation might act as a catalyst for the cannabis industry.
The market value has been significantly influenced by delays in US federal cannabis legalization, and LPs are currently having trouble making a profit in Canada. Since they trade on the major US stock exchanges, Canadian cannabis companies have garnered substantially greater investor interest. Because of this, any sector momentum might start with Canadian cannabis companies before moving on to the rest of the market. Let’s take a closer look at three of the top Canadian marijuana stocks on your July list.
Canadian Cannabis Stocks For Your List Mid July
- Canopy Growth Corporation (NASDAQ: CGC)
- Aurora Cannabis Inc. (NASDAQ: ACB)
- Sundial Growers Inc. (NASDAQ: SNDL)
Canopy Growth Corporation
Canopy Growth has made a name for itself as one of Canada’s top producers and suppliers of cannabis and products derived from it. The company’s main markets are Canada, the US, and Germany, where it offers cannabis and goods made from hemp. In 2021, Canopy introduced CBD drinks in the US in collaboration with Southern Glazers Wine & Spirits. To increase the number of brands it offers in Canada, Canopy has acquired Supreme Cannabis Company, Inc., a premium cannabis business. The business also unveiled Whisl, a ground-breaking CBD vape that can help you control your mood throughout the day. The Martha Stewart CBD division expanded its line of Tropical CBD Wellness Gummies in March.
Canopy published its fiscal 2022 fourth-quarter profits in May, stating net sales of $520 million, which were down 5% from FY2021. In addition, management anticipates that the restructuring actions announced on April 26, 2022, will save $30 to $50 million in COGS and $70 to $100 million in SG&A costs over the course of the following 12 to 18 months. The business intends to strengthen its position in Canada’s premium categories throughout the 2023 fiscal year. The business also plans to expand its brands outside of the US, particularly into Canada’s recreational sector. The Company intends to be Adjusted EBITDA positive in FY2024 as a result of these activities, excluding expenses in BioSteel and U.S. THC.
CGC Stock Performance
CGC stock closed at 2.62 on July 8th down 36.56% in the past month of trading. Currently, the stock has a 52-week price range of $2.53-$23.47 down 69.99% year to date. According to analysts at CNN Business CGC stock has a 12-month median price target of $3.32 per share. This estimate would be a 17.85% decline from its last trading price of $2.62.
Aurora Cannabis Inc.
Aurora Cannabis Inc., a Canadian firm, grows and exports medicinal marijuana to other countries. The organization entered the US cannabis market for the first time by acquiring Reliva, a company that produces CBD there. Three additional San Rafael ’71 cultivars have been added to Aurora’s collection. Internationally, the company delivered marijuana to Israel valued at $8 million. The first shipment to the French medicinal cannabis pilot program has been completed, and the company is now working to rebuild its balance sheet. Additionally, in May, the company opened its first manufacturing and production facility with EU-GMP certification, further solidifying its position as the market leader in Germany.
When the company reported its third-quarter fiscal 2022 results on May 12, it retained its position as the top Canadian LP in high-margin foreign medical sales. Medical marijuana’s net sales reached $39.4 million, an 8 percent rise from the previous year. Additionally, the third quarter of 2022 saw $50.4 million in total cannabis net revenue, a 17 percent decline from…
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