2019 was a year to forget for most marijuana investors. Poor earnings and a drop in confidence sent some fleeing from this segment of the market. 2020 is likely to be different, with prices ‘corrected’ and many of the headwinds removed from the market. KushCo Holdings (OTC: KSHB) is one stock to consider as we move ahead into the new year.
KushCo is currently down -72% over the last 12 months, making today’s price attractive for bargain investors. The company sells vaporizers, hydrocarbon gasses used for cannabis oil production, and it offers packaging and branding services to producers and retailers. The marijuana market didn’t expand as much as expected in 2019, which was one of the reasons this stock declined. The threat of a U.S. vaping ban also impacted the stock. It was recently announced that only some flavored nicotine vape products would be banned, which is good news for KushCo.
The marijuana industry is now maturing, and supply and production chains are improving. In Ontario, a major Canadian market, it is expected that the number of dispensaries will increase tenfold by the end of the year. Major U.S. states have now legalized cannabis, expanding KushCo’s total addressable market.
This stock isn’t a pick for a short-term return. It’s a long-term bargain stock that has the potential to grow along with its industry. Investors looking to minimize risk but maximize returns with an affordable pick should consider this one in 2020. An average target price of $5.50 shows that there’s confidence for an upside before the end of the year.
- 1 Year Price Growth: -72.71%
- YTD Price Growth: 00%
- 3 Month Price Growth: -2.96%
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.