#3 - Canopy Growth (NASDAQ:CGC)
Canopy Growth (NYSE: CGC) -Depending on where you stand on the idea of legalizing marijuana, you might think we’re smoking something to include a cannabis company on a list of stocks to buy in 2019. Canopy’s stock is down from its peak price by over 40%. What is more concerning is that it failed to sustain a rally even after favorable results from the November mid-term elections that saw Michigan become the 10th state to legalize recreational marijuana. This is in addition to the fact that nearly two-thirds of the United States have legalized some form of medicinal marijuana. The problem for Canopy is the optics. No administration wants to be seen as coming out in favor of legalized marijuana. But with some estimates saying 62% of Americans now support legalizing recreational marijuana, opinions may be changing. The opportunity for Canopy is that investors vote with their dollars. And according to Beau Whitney, vice president, and senior economist at New Frontier Data, investors injected $10 billion into cannabis stocks in North America in 2018. For perspective, that's two times what was invested in these stocks in the last three years combined. And that number is expected to increase to over $16 billion in 2019. Another solid trend for CGC is that a good percentage of these investment dollars are coming from millennials who are much more likely to be open-minded about the use of recreational marijuana. For many investors, the stock may seem too risky to own, but this seems like a case of a stock that has too much upside not to own.
About Canopy Growth
Canopy Growth Corporation, together with its subsidiaries, engages in the production, distribution, and sale of cannabis and hemp-based products for recreational and medical purposes primarily in the United States, Canada, Germany, and internationally. It operates through Canada Cannabis, International Markets Cannabis, and Storz & Bickel segments.
Read More - Current Price
- $3.90
- Consensus Rating
- Reduce
- Ratings Breakdown
- 0 Buy Ratings, 2 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $3.50 (10.3% Downside)
