Cannabis stocks have exploded in recent months, putting prices for some of the most popular producers out of reach of the average investor. However, there are still value picks to find, like Village Farms International Inc. (NASDAQ: VFF). This company is unique among pot stocks. It is a greenhouse and farm operator with activities in the production of tomatoes, cucumbers, and bell peppers. It is also an energy reseller to agricultural producers. In the cannabis market, it owns and operates legal plantations in Canada and then leases its capacity to other producers.
Village Farms diversification makes this company an interesting stock pick. Most cannabis companies are pure-play and their success relies on the success of legal pot. Village Farms has exposure to the cannabis market and will profit from it in the coming years, but it has other options to adapt to any unforeseen conditions. In the mid-term, cannabis production looks to be incredibly profitable. The company is on track to increase its earnings by 53% over the next year. Strong earnings will generate new interest in the stock and potentially push the price upwards.
The average analyst target price of $21.31 suggests that now is the time to buy. With the stock pulling back -10% over five days, it’s even discounted for investors today.
- 1 Year Price Growth: 03%
- YTD Price Growth: 44%
- 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.