Following the widespread downturn in cannabis stocks during 2019, stock in Aphria Inc. (NYSE: APHA) was always going to have a difficult start to 2020. Now the economic effects of the Coronavirus are threatening stocks again. Despite this, Aphria is managing to stage a rally. Price has grown 59.75% over the last month, and there’s momentum to suggest it could go even higher.
Aphria is one of the most capable cannabis producers in Canada. When running at peak capacity it can produce up to 250,000 kilograms of cannabis each year. It has supply agreements in every Canadian province. This puts it in a strong position relative to the competition. The company is leveraging its eCommerce and pickup options to drive revenue while much of Canada’s economy is on lockdown.
This stock has traded as high as $8.04 in the last 52-weeks. Today’s price is heavily discounted from that peak. Aphria has reported a 40% boost for in-store sales and a 200% boost for eCommerce sales since lockdowns started in Canada. Its ability to grow during this crisis is a strong signal for new investors. The company’s sales performance today and a high level of liquidity put it into the perfect position to weather the economic crisis. With a bargain-priced stock, cannabis investors should consider this pick in April.
- 1 Year Price Growth: -50.72%
- YTD Price Growth: -27.78%
- 3 Month Price Growth: -27.36%
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.