While cannabis stocks aren’t receiving the same attention in the media as they were last year, there are still bargains to be found in the market. Many of them have high potential, which is the case when you look at OrganiGram Holdings Inc. (NASDAQ: OGI). This company produces and sells medical marijuana in its native market of Canada, and its stock is currently undervalued with strong potential for an upside.
Impatient investors pulled out of the cannabis market this year, leading to some sharp declines across the board. However, investors who are willing to hold long positions could find plenty to get excited about in the industry. OrganiGram is a great revenue performer and it has increased sales for five consecutive years. At the end of the 2018 fiscal year, revenue was up 130.64% for a total of $12.43 million. The legalization of cannabis in Canada has created a strong boost in the top line.
Due to the lack of interest in cannabis stocks from the mainstream, this option is currently undervalued. The average target price of $11.74 hints at a healthy upside for investors who buy today. 11 of 15 top analysts recorded on FactSet currently recommend a BUY rating on this stock, due to its consistent revenue growth and momentum.
Any investor looking for a bargain in the cannabis stock market should consider OrganiGram. It has an established business model and recent figures prove that it knows how to capitalize on its product.
- 1 Year Price Growth: -34.81%
- YTD Price Growth: -0.79%
- 3 Month Price Growth: -45.71%
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.