HEXOWith a legalized cannabis industry, Canadian pot companies have seen significant growth in 2019. Some of the best bargain rally stocks are linked to the industry, and HEXO Corp. (NYSE: HEXO) is one of them. This stock has seen significant growth this year, managing to endure even when there is uncertainty in the market. Here’s why you should consider this for your next investment.

HEXO produces medical cannabis products that are sold in the Canadian market. The company has been operating since 2013, making it one of the more established names amongst the recent influx of similar businesses.

In the 2018 fiscal year, the company had its best-ever sales result, with $4.93 million in revenue. This was a year-over-year increase of 20.43%. While the company did suffer an operating loss in 2018, this was not due to poor management, but rather because of aggressive expansion into the newly-legalized recreational cannabis market. The company increased its headcount by 32% in 2018, contributing to the spike in operating costs.

A larger market and already strong brand presence should allow the company to balance out its costs as revenues increase. The company is currently in the process of replacing its CFO as it seeks to strengthen financials while expanding into the global cannabis market. With strong growth potential for both the company and its shares, HEXO is one of the best bargain stocks for May 2019. Stock is down this week, which could create a good buying opportunity when the price balances out.

 

Key Data:

  • 1 Year Price Growth: 94%
  • YTD Price Growth: 65%
  • 3 Month Price Growth: 27%

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.