Which Canadian Cannabis Stock is the Worst Performer YTD?

Based in Edmonton, Canada, Aurora Cannabis Inc. (ACB – Get Rating) produces and distributes medical cannabis products worldwide. ACB’s stock has gained 96% over the past six months, driven by a surge in investors’ interest in cannabis stocks on optimism over cannabis’ legalization prospects in the United States. However, its shares have tumbled 5.2% so far this year and 24.5% over the past month…

ACB is currently trading at $7.88, nearly 60% below its 52-week high of $19.68, which indicates short-term bearishness. As the Biden administration continues to busily tackle  the pandemic-induced public health and economic crises, its plans to address marijuana decriminalization appear to have been placed on the backburner.

Consequently, investors have become concerned about ACB’s prospects because the company is far from profitable and is struggling to stay afloat. So, ACB’s recovery prospects look bleak now.

Here is what we think could influence ACB’s performance in the near term:

Industry Headwinds

Cannabis legalization has clearly been making big strides in the U.S. as more states accelerate their relaxation of marijuana law enforcement. However, given that the federal government is still prioritizing the health crisis, its plans to decriminalize or legalize marijuana at the federal level has taken a backseat. At the same time, since the Canadian market is still too small for cannabis companies to grow their revenues significantly, Canada-based cannabis operators like ACB might face great difficulty in generating profits in the crowded cannabis space.

Disappointing Financials

ACB’s consumer cannabis net revenue declined 16.8% sequentially to…

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