Aurora Cannabis Inc. (NYSE: ACB) has gained a lot of traction in the market this year, becoming one of the top investments for alternative portfolios.
Aurora is a Canadian licensed cannabis producer with a listing on the New York Stock Exchange. It is unique amongst its peers, thanks to a high level of diversification. The company acquired Uruguay producer ICC Labs at the end of last year. This gave it 70% of the Uruguayan cannabis market as well as an option to grow in Columbia. It also has an agreement to export legal cannabis to Mexico, giving it access to another lucrative market. In total, the company can produce up to 570,000 kilograms of cannabis per year. This figure is likely to double within the next decade.
Aurora now has a presence in 24 markets, a level of diversification that its competitors don’t come close to. This could protect revenues in the years ahead, and analysts believe that this will eventually allow the company to overshadow its competitors.
Revenue grew a staggering 205.51% in 2018, with income growing 179.13%. Despite heavy investment, the company still managed a 10.65% gross profit margin. 2018 was also the first time that Aurora saw positive gross income movement, a good sign for the future.
Investors who have avoided Aurora should reconsider this stock. The target price consensus is currently $13.67, representing a strong potential upside. In the long term, Aurora is well positioned to become one of the most valuable legal cannabis companies in the world.
Aurora is priced well below its 52-week peak of $12.53, making it even more compelling for bargain focused investors.
- 1 Year Price Growth: 19%
- YTD Price Growth: 42%
- 3 Month Price Growth: 10%
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.