OrganiGram OrganiGram Holdings Inc. (NASDAQ: OGI) is a Canadian cannabis company with a bargain stock.

If we look at the data from before the health crisis, OrganiGram had some solid momentum. Sales revenue increased by 546% in 2019, its second consecutive year of top line growth. However, sales have remained flat during the Coronavirus Pandemic. In its most recent earnings report, the company revealed negative EBITDA and no growth in revenue or earnings.

The company reduced its workforce by 25% this year as lockdowns and slowed consumer spending became problematic. Production output is down, but this could help the company to manage its costs more efficiently in the meantime. There is a bright side at the other end of the current conditions. Cannabis sales are expected to pick up once a treatment or vaccine for COVID-19 is developed. The company is also preparing to launch new product lines, including marijuana pods for vaporizers in the Canadian market.

With reduced costs likely in the third quarter, the company could offset a slowdown in revenue. Analysts are still optimistic that there’s potential for long-term stock price growth. The current average target price of $2.37 suggests a strong upside for investors who buy today.

Key Data:

  • 1 Year Price Growth: -71.46%
  • YTD Price Growth: -49.80%
  • 3 Month Price Growth: -31.67%

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.