Aurora Cannabis (NYSE: ACB) is one of a growing number of cannabis stocks available today. Aurora is a Canadian producer and retailer of medical marijuana products, with roughly 16,400 patients registered to its programs. With Canada recently legalizing recreational use of marijuana, the company is considering shifting some of its production capacity (or adding more) to serve the legal market.
Aurora Cannabis revenue growth has been nothing short of phenomenal. In 2016, the company reported just $1.44 million in revenue. In 2017, it grew to $18.07 million. The company had its best fiscal year in 2018, with revenue of $55.2 million. This rapid growth can be attributed to the increased use of medical marijuana in Canada, as well as the legalization of recreational marijuana, giving the general public access to Aurora’s products.
Strong revenue growth and high potential in the Canadian marijuana industry has led to a surge in investor confidence. Year to date, this has been one of the best growing cannabis stocks on the market. However, investors should be aware that there’s a long game to play here. Aurora Cannabis market capitalization over $9 billion means that this company will need to keep growing its revenue for several years before it can even think about offering a dividend. Investors who accept the risk can pick up this stock for a bargain.
- 1 Year Price Growth: 02%
- YTD Price Growth: 49%
- 3 Month Price Growth: 60%
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.