Cannabis stocks aren’t just for alternative investors who build portfolios focused on emerging markets. Traditional investors can find value in these picks, and Hexo Corp. (NYSE: HEXO) is a penny pick to watch in 2020.
Hexo is a Canadian cannabis company that serves the medical and adult-use market. It controls 300,000 square feet of production facilities and operates dispensaries within its domestic market. Revenue growth has been rapid, reflecting the huge growth potential in the wider cannabis industry. Hexo generated sales of $47.5 million CAD in 2019, an increase of 863.55% over the previous year. Yet to achieve profitability, massive revenue growth will help the company to pay for its expansion and break even on the bottom line.
Recent news is positive, with the company announcing this month that it has received its license for the manufacture, processing, and distribution of medical and adult-use cannabis in Ontario. It also recently launched a new 30-gram product format in a child-proof and odor-proof pouch, which is expected to be popular with consumers.
The bargain price on this stock makes it easier for new investors to take a position in the cannabis market. Momentum shows that there’s confidence in this industry, making it a compelling stock to watch in June and beyond.
- 1 Year Price Growth: -89.04%
- YTD Price Growth: -56.57%
- 1 Month Price Growth: 95%
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.