After an initial surge of activity, cannabis stocks have cooled towards the second half of 2019. Bearish patterns have emerged, with some stocks shedding gains in recent months. HEXO Corp. (NYSE American: HEXO) is just one example, with stock price falling -25.65% in the last 30 days. Despite what the charts look like, this could still be an ideal stock for an alternative portfolio.
HEXO is a Canadian cannabis company that is involved in the manufacture and distribution of medical marijuana. It has been noted as a top stock in recent weeks, but it looks even more compelling today. The price decline, along with strong projected earnings, should make this an easy decision for investors seeking a bargain.
The most optimistic analysts have projected full year revenue of $62.06 million for HEXO in 2019. Annual revenue could exceed $300 million by 2020. In the company’s most recent fiscal quarter, it generated $13 million in revenue, up from $1.2 million in the year ago period. This growth has outpaced the marijuana industry overall.
HEXO might just be the most promising cannabis stock on the market today. It has demonstrated an ability to generate huge sales numbers, and those are only likely to grow as the legal cannabis market expands globally. Stock today is compelling. It’s priced below its 52-week peak, allowing for growth headroom in the mid-term. The current consensus target price on this stock is $10.63, almost double the price of today.
- 1 Year Price Growth: 07%
- YTD Price Growth: 56%
- 3 Month Price Growth: -19.59%
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.