Village FarmsAfter a strong bull run towards the end of 2018, marijuana stocks have taken a slide in the market. Lower marijuana prices due to legalization, and a general tapering of investor confidence has led to some steep declines across the board.

Despite marijuana stocks not performing like they once were, there are still strong buys in the sector, especially for bargain minded investors. Village Farms International Inc. (NASDAQ: VFF) is one of the stronger stocks today. This company has seen its share price grow almost 200% in 2019, and there could be more headroom for patient investors.

Village Farms is unique because it is diversified. While it does produce up to 75,000 kg of cannabis annually, it also grows traditional produce like tomatoes, peppers, and cucumbers. This diversification makes it less risky for investors who want to gain some exposure to the legal marijuana industry. Village Farms is expected to double its cannabis yield over the next year.

In addition to producing crops for recreational and medical marijuana, Village Farms is beginning to branch out into the hemp CBD market. This will give it access to a newly opened sector in the United States. Hemp-derived products were recently made legal under federal law.

Village Farms generated $194.42 million in revenue during 2018, a -5.44% decrease year over year. Yield increases, and CBD diversification could help to turn performance around in the midterm.

Key Data:

  • 1 Year Price Growth: 00%
  • YTD Price Growth: 07%
  • 3 Month Price Growth: -18.71%

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.