No, Canopy Growth isn't a buy It's possible that Canopy Growth would become a good buy in a market crash if its stock falls below $20 a share, but today, there's just too much of a disconnect between its sales numbers and its market cap to make it worth investing in.
Full Answer
Why is Canopy Growth Stock down Thursday?
The main reason that Canopy Growth is down so far on Thursday is that the company plans to issue more than 34 million new shares as part of the exchange. This will dilute the value of the marijuana stock.
Will Canopy Growth be profitable in 2021?
To be profitable, Canopy has to grow its market in Canada and globally. It's making progress there, having managed to capture a 35% dollar share of the total cannabis beverage category in Canada in fiscal 2021.
Can canopy stock take advantage of the US cannabis market?
Though Canopy cannot reap the benefits of the U.S. cannabis market now, if it manages to generate profits just from the Canadian and international markets, it will be more than ready to capture the U.S. cannabis market eventually with the help of its partners.
Does Wells Fargo offer Canadian or cannabis stocks?
If you’re looking for a place to trade Canadian or cannabis stocks, Wells Fargo’s online discount broker WellsTrade has some tools to help you narrow down your selection. We found some medical marijuana companies trading on its platform, and the broker doesn’t charge anything extra to trade these securities.
How do I buy shares in Canopy Growth?
How You Can Buy Canopy Growth Stock Right NowPick a Broker. Brokers differ in the services they offer, so knowing your needs will make your choice a lot easier after assessing a particular broker's offerings. ... Try Out Different Demo Accounts. ... Fund Your Trading Account. ... Buy CGC Stock.
Is CGC a buy right now?
Bottom line: Canopy Growth stock is not in a buy zone, so it isn't a buy right now.
Does US sell Canopy Growth?
Canopy Growth management has focused on a strategy of absorbing financial losses short term in order to dramatically expand its operations and sales in the emerging recreational and medical cannabis markets in the U.S, Canada, and globally.
Is Canopy Growth a good investment?
Canopy Growth Corp has a Value Score of 31, which is Value.
What's the outlook for Canopy Growth?
Stock Price Forecast The 16 analysts offering 12-month price forecasts for Canopy Growth Corp have a median target of 3.69, with a high estimate of 10.09 and a low estimate of 1.94. The median estimate represents a +31.82% increase from the last price of 2.80.
Will Canopy Growth ever pay dividends?
Does Canopy Growth Corporation pay a dividend? Canopy Growth Corporation does not currently pay a dividend and has no current plans to introduce one in the future.
Who does Canopy Growth sell to?
Sunniva Medical Inc.Sunniva's Canadian subsidiary, Sunniva Medical Inc., committed to selling Canopy 45,000 kilograms of premium quality cannabis annually for a two-year period commencing in the first quarter of 2019.
Is CGC a buy or sell?
For example, a stock trading at $35 with earnings of $3 would have an earnings yield of 0.0857 or 8.57%. A yield of 8.57% also means 8.57 cents of earnings for $1 of investment....Momentum Scorecard. More Info.Zacks RankDefinitionAnnualized Return1Strong Buy24.75%2Buy18.15%3Hold9.70%4Sell5.35%2 more rows
How many shares does Canopy Growth have?
Share StatisticsAvg Vol (3 month) 32.26MShares Outstanding 5402.86MImplied Shares Outstanding 6N/AFloat 8260.38M% Held by Insiders 135.44%7 more rows
Whats happening with Canopy Growth?
Canopy Growth reported a 36% drop in revenue from Canadian recreational cannabis sales compared with the same quarter a year ago. Canopy Growth stock is plummeting after the marijuana company delivered financial results that fell short of expectations.
Who owns CGC stock?
Largest shareholders include Vanguard Group Inc, MJ - ETFMG Alternative Harvest ETF, Etf Managers Group, Llc, D. E. Shaw & Co., Inc., Two Sigma Investments, Lp, VGTSX - Vanguard Total International Stock Index Fund Investor Shares, Susquehanna International Group, Llp, Susquehanna International Group, Llp, Citadel ...
What is the target price for Canopy Growth?
Stock Price TargetsHigh$10.09Median$3.69Low$1.99Average$3.97Current Price$2.8100
There are chances this Canadian pot stock could turn its fate around
Sushree is a new member of the Fool family, keen on writing about the cannabis and healthcare sector and also has five years of experience writing on real estate, consumer sector, and macroeconomic topics. She holds a bachelor’s degree in business management, specializing in finance, and also a CFA Level 2 candidate.
Canopy Growth's revenue growth is not enough to bring in profits
Canopy is growing revenue, but that growth isn't significant enough to generate profits. In its 2021 fiscal fourth quarter (ended March 31), revenue jumped 38% year over year to CA$148 million. For the full year, revenue came in at CA$547 million, up from CA$399 million in fiscal 2020.
Canopy Growth is excited about the U.S. market, but ..
Canopy Growth's CEO is pretty optimistic about the U.S. cannabis industry. And why not? Canopy has an edge over its peers in the U.S. market thanks to its strong partners, including Constellation Brands and U.S.-based hemp company Acreage Holdings.
Is this pot stock a safe bet?
Management stated in the earnings report that Canopy is on track to achieve positive adjusted EBITDA by the second half of fiscal 2022.
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What happened
A funny thing happened in the cannabis market today. Analysts at investment bank Wells Fargo initiated coverage across the sector, warning of overvaluation among marijuana companies and suggesting investors turn their attention to hydroponics suppliers instead -- but marijuana stocks leapt higher anyway.
So what
The focus of Wells Fargo's ire this morning is the last company on that list -- Canopy Growth. As the analyst warns, Canopy Growth is unlikely to achieve sales sufficient to reach break-even profit anytime soon without federal action to legalize marijuana sales in the United States.
Now what
Suffice it to say that these are not great numbers, and while a boost in marijuana sales from legalization in Washington, D.C., might help, well, Aurora's sales are already up 13 times in size over the last five years, according to data from S&P Global Market Intelligence. Canopy Growth's sales are up 15 times, and Tilray's something like 37 times.
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Although sales were up in Q2, there are still many question marks for investors to consider before buying this pot stock
Canopy Growth ( CGC -3.44% ) is one of the top pot companies in Canada, and its stock has been soaring of late, currently trading around its 52-week high. It's historically been one of the safer and better-performing cannabis investments, and in the past year, its 45% returns have dwarfed the Horizons Marijuana Life Sciences ETF and its 21% gains.
The company is coming off a record quarter -- but will that trend continue?
On Nov. 9, Canopy Growth released its second-quarter results for the period ending Sept. 30, in which it reported revenue of 135.3 million Canadian dollars -- a new all-time high. It was a 77% improvement from the CA$76.6 million in net sales the company posted in the same period last year.
Is Canopy Growth stock too expensive?
Since Canopy Growth remains unprofitable, using the price-to-sales (P/S) ratio can be an effective way to compare its valuation against its peers. And based on sales, the stock is in a league of its own when compared against rivals Aphria , Tilray , Aurora Cannabis, and HEXO:
No, Canopy Growth isn't a buy
It's possible that Canopy Growth would become a good buy in a market crash if its stock falls below $20 a share, but today, there's just too much of a disconnect between its sales numbers and its market cap to make it worth investing in.
The past year hasn't been kind to Canopy Growth, but could the pot grower see better days ahead?
A Fool since 2019, Prosper's writing focuses primarily on the healthcare sector. Passionate about teaching and learning, he enjoys helping others make better decisions about their finances -- and enjoys it just as much when they return the favor. In his free time, you'll find him curling up with a good book or doing math.
Canopy's fourth-quarter results did the company no favors
Canopy recently released its earnings report for the fourth quarter of its fiscal year 2020. The company's financial results were underwhelming, to say the least.
Reasons to be optimistic
During the fourth quarter, revenue from cannabis derivative products accounted for less than 2% of Canopy's sales. But it has been less than a year since the cannabis derivative market, known as "Cannabis 2.0" officially opened in Canada, and this market could present a significant tailwind for Canopy.
Is it a buy?
In my view, Canopy remains one of the best cannabis stocks to buy, particularly compared to most of its peers in the Canadian market. But I think the sector will remain volatile for the foreseeable future, and while Canopy may be one of the winners in the long run, in my opinion, there are much better investment options out there.