Aurora Cannabis Inc. (NYSE: ACB) is priced just above the typical bargain threshold of $10, but this affordable stock is still an excellent pick for alternative investors. Aurora engages in the production, distribution, and sale of cannabis in the Canadian market. It offers medical and adult-use products as well as hemp food products.
The company reported third-quarter earnings on May 14, with better than expected results. Revenue was up 35% over the previous quarter, hitting $56.03 million. Total cannabis sales volume increased to 12.73 million kilograms, an increase of 34% over the previous quarter. Although not yet profitable, analysts predict that it will have a positive EBITDA margin by the first quarter of next year.
Aurora has been highly volatile, reflecting the wider movement in the cannabis market. Stock price over 52 weeks has ranged from $5.30 to $105.48. The bigger figure suggests just how high this pick could go. The average analyst rating of HOLD indicates that the stock could decline slightly in the short term, or hover around its current price. However, investors who are interested in a long term cannabis play will find value. The company’s performance, even when facing the Coronavirus, shows just how resilient it is.
As the company approaches profitability, interest in the stock, and its price, are likely to trend upwards.
- 1 Year Price Growth: -85.90%
- YTD Price Growth: -43.48%
- 3 Month Price Growth: -25.56%
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.