AkernaComplementary stocks are excellent targets for cannabis portfolio expansion. Akerna Corp. (NASDAQ: KERN) is a technology company that develops compliance software for cannabis industry operators and the government departments that regulate them. As an ancillary player in the market, it also offers business intelligence and consulting services.

As a young company with a newly listed stock, tracking Akerna’s historical growth is difficult. In 2019, the company generated $10.92 million in revenue for a gross profit margin of 57.58%. This was the first time the company listed full-year financial data publicly.

So far this year, the reports are promising. In its most recent quarter, the company generated $3.1 million in revenue, a 32% year over year increase. Software revenue was up 16% while consulting revenue was up by an impressive 219%. It’s clear that the company’s future is in its professional services, with the software being the underlying product and engagement driver.

There’s an average analyst target price of $15 on this stock today. This target represents a significant upside over the current trading price. Any alternative investor looking for a high potential bargain should consider this ancillary company in the cannabis industry.

Key Data:

  • 1 Year Price Growth: -53.66%
  • YTD Price Growth: 81%
  • 3 Month Price Growth: 69%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.