KushCo Holdings (OTC: KSHB) is one of many struggling cannabis stocks in what has been a tough year for the industry. However, analysts on Wall Street are predicting a strong upside. Should investors take a risk on this bargain pick while it’s down?
If the Wall Street projections are correct, there’s a 227% upside to look forward to on this stock. The company is likely to make a loss this year, due to decreased revenue from the vaping market. However, as an ancillary company in the cannabis industry, KushCo has some diversification to fall back on. It is a major supplier of the hydrocarbon gasses that are used to produce cannabis oils. There’s also some potential relief in the form of tariff reductions. Many of KushCo’s vaping products are sourced from China, so relaxed tariffs would be a boost to the bottom line.
Analysts have pinned a consensus price of $6.50 to this stock. That’s a huge boost over the current pricing of $1.75. The Cannabis industry is growing, thanks to a widespread legislative shift in both medical and recreational marijuana. KushCo could increase in strength as the industry expands.
There’s a risk in this stock but its bargain pricing creates an argument for a small holding in a diversified portfolio. Any investor willing to wait out the current slump could find value in this pick.
- 1 Year Price Growth: -70.59%
- YTD Price Growth: -67.41%
- 3 Month Price Growth: -62.45%
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.