Although the U.S. cannabis industry has been gaining steam due to the legalization of recreational marijuana in several states, there continue to be major obstacles including legalization at the federal level. Further…
cannabis has proven itself quite easy to grow with few barriers to entry which means that marijuana producers are unlikely to deliver great returns for investors.
Furthermore, with the laws around cannabis becoming gradually favorable, more players are entering the cannabis space, making the industry highly competitive. This could negatively impact the market share of existing players and place more downward pressure on prices.
Given this backdrop, it could be wise to steer clear of cannabis stocks Harvest Health & Recreation Inc. (HRVSF – Get Rating), TerrAscend Corp. (TRSSF – Get Rating), and OrganiGram Holdings Inc. (OGI – Get Rating), which possess weak fundamentals.
HRVSF is a cultivator, distributor, and marketer of cannabis products. The company provides quality classics, cannabis oil products, including flower, vaporizer pens, cartridges, cannabis product edibles, chocolates, mints, and dissolvable mouth strips. Avenue, CBX SCIENCES, EVOLAB, GOODSUN, MODERN FLOWER, and ROLL ONE are some of the brands under the company.
HRVSF’s revenue increased 84.1% year-over-year to $102.46 million in the second quarter ended June 30, 2021. However, the company’s total expenses grew 26.4% from the year-ago value to $40.93 million. Its loss per share came in at $0.04. Also, the company’s cash and cash equivalents decreased 9% from $78.06 million as of December 31, 2020, to $71.06 million as of June 30, 2021.
HRVSF’s EPS is expected to remain negative in the current year. The company has failed to beat the consensus EPS estimates in three of the trailing four quarters. Also, the stock has lost 25.7% over the past three months.
HRVSF’s POWR Ratings are consistent with this bleak outlook. The stock has an overall D rating, which equates to a Sell in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its weighting.
Also, the stock has a D grade for Value, Sentiment, and Quality. We’ve also graded HRVSF for Growth, Momentum, and Stability. Click here to access all of HRVSF’s ratings. HRVSF is ranked #187 of the 215 stocks in the F-rated Medical – Pharmaceuticals industry.
Headquartered in Mississauga, Canada, TRSSF are a cannabis cultivator, manufacturer, and operator. It also has vertically integrated operations in Pennsylvania, New Jersey, and California. The company owns several synergistic businesses and brands, including…
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