Floating just above the traditional bargain limit of $10, Cara Therapeutics Inc. (NASDAQ: CARA) is still a cannabis stock to watch this year. This clinical-stage pharmaceutical company is involved in the research, development, and commercialization of novel drug treatments.
This stock is interesting because it is diversified beyond the cannabis market. Although the company is investing heavily in cannabinoid-based treatments, it also develops opioid drugs. Its most promising cannabinoid treatments are designed for high-level pain relief. Buying this stock can offer exposure to the wider pharmaceutical market while still retaining some interest in cannabis.
Company revenue has increased for three consecutive years. In 2019, sales growth was up 47.64%, for a total of $19.89 million. Cara is not yet profitable, relying heavily on private funding and public investors. However, its novel therapeutics have long term potential to drive revenue.
The stock is significantly down from its 52-week peak of $27.55. The average target price today is $32.34, hinting at a significant upside. Consider buying this stock for its hefty upside and the company’s potential in the wider pharmaceutical market.
- 1 Year Price Growth: -24.43%
- YTD Price Growth: -12.23%
- 3 Month Price Growth: -19.15%
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.