The global legal cannabis market is expected to hit a $66.3 billion valuation by 2025. The sector isn’t fit for quick turnarounds, but the long-term potential of cannabis is undeniable. Investors who are willing to wait for the ideal market conditions can benefit from buying the bargain stocks early.
Neptune Wellness Solutions Inc. (NASDAQ: NEPT) is a cannabis stock that trades below $4 today. It produces cannabis derived nutritional supplements and lifestyle products. It recently partnered with flavor and fragrance company International Flavors, as well as marketing company American Media. Both partnerships are intended to support the development and promotion of CBD (cannabidiol) products. Hemp derived CBD is legal in the United States.
While revenue decreased in 2018, the company is working its way towards profitability. EBITDA increased 30.19% last year, thanks to operational changes that raised efficiency and reduced costs. The stock has outperformed the wider market in 2019 but has seen reduced performance in recent volatility.
Neptune Wellness Solutions has the potential to grow its revenue as demand increases for CBD and cannabis products. Don’t buy this stock for a short-term return. It’s suited to a ‘buy and hold’ portfolio, and with its bargain pricing it is attractive for alternative investors.
- 1 Year Price Growth: -9.29%
- YTD Price Growth: 06%
- 3 Month Price Growth: -19.70%
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.