Marijuana company Cronos Group Inc. (NASDAQ: CRON) may have broken the $10 barrier last year, but alternative investors should still see it as a bargain, especially considering its growth potential.
Cronos researches, produces, and markets cannabis products in legalized regions like Canada and Germany. It is one of the highest performing stocks of its kind, and the company is frequently rated as a better investment than its peers. With stocks beginning to recover across the board, now could be the perfect time to buy shares.
Growth potential in the company is huge. Last year was the best on record, with $7.35 million in revenue generated. Year over year revenue growth was 350.34%, the highest it has ever been. Cronos has received significant backing from major established companies. Altria, the parent company of Philip Morris, invested $1.8 billion in Cronos last year for a 45% stake in the company. This investment means that Cronos can afford to run at a loss while it grows its business and improves its fiscal performance.
Analysts are confident that this stock will grow in the short and mid-term. The average price target of $20.26 represents a strong upside over today’s trading price. While some marijuana stocks look overvalued, Cronos is a strong pick today, and it would be a valuable long-term holding as the legal cannabis industry continues to grow.
- 1 Year Price Growth: 18%
- YTD Price Growth: 97%
- 3 Month Price Growth: -8.12%
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.