(VIANEWS) – Canopy Growth (NASDAQ: CGC) shares were down 12.22% at 13:26 EST Monday after four consecutive sessions of gains, dropping 71.7% below their 52-week high of EUR4.77 but showing some signs of life since. Meanwhile, NASDAQ is currently up 0.16 to EUR13,730.74, suggesting a somewhat bullish trading session thus far.
About Canopy Growth
Canopy Growth Corporation is a premier producer and distributor of cannabis- and hemp-based products for both recreational and medical purposes in Canada, the US, Germany and beyond. Operating through two segments – Global Cannabis and Other Consumer Products – their product lineup features dried cannabis flower, extracts and concentrates, beverages, gummies and vapes under brands like Tweed, 7ACRES, DOJA Ace Valley Quatreau Deep Space First+Free Spectrum Therapeutics Vert Tokyo Smoke Martha Stewart CBD BioSteel Storz & Bickel This Works HiWay Simple Stash Whisl and Truverra. Established in 2009 in Smiths Falls Canada
Yearly Analysis
As an investment expert, I would provide Canopy Growth with the following investment outlook based on its data:
Canopy Growth stock has experienced considerable fluctuation since reaching its 52-week high of EUR4.77 last November and low of EUR0.35, reflecting significant market fluctuations over the past year. Nonetheless, its current price remains within historical trends which could serve as a positive signal to those believing in Canopy’s long-term potential.
* Anticipated Sales Growth: Canopy Growth’s sales are expected to experience 3.8% this year and 0.2% in 2019. Though these may appear modest, these projections still indicate steady growth for Canopy. Investing may require monitoring these projections over time in order to stay ahead of competitors who may try and beat these figures.
* Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA): Canopy Growth’s current EBITDA stands at 1.84 and provides vital insight into its profitability and financial health. A positive EBITDA indicates that Canopy Growth is making more money than it spends; which should be encouraging to investors. However, they may wish to compare Canopy Growth’s EBITDA against that of similar industry competitors to determine whether or not Canopy is outperforming competitors or not.
Canopy Growth’s stock currently trades at an attractive price relative to its historical range and investors may take heart in its expected sales growth and positive EBITDA as indicators that its investment potential remains intact. Of course, any investment involves risks, so prospective buyers should conduct more extensive research and analysis prior to making any final decisions on investing.
Technical Analysis
Canopy Growth stock has experienced a sharp decrease in value over the past month, falling significantly below both its 50-day and 200-day moving averages. Furthermore, its last reported volume of 55,544,644 represents 10.39% more trading activity than usual and indicates increased trading activity. Volatility for this stock has been on a decline, with intraday variation averages falling from 6.45% last week and 7.87% for last month and 10.78% quarter-on-quarter. The highest amplitude of average volatility over the last week, month and quarter has been 14.35%; 15.82% in month; and 10.78% over quarter. Canopy Growth’s stock is currently oversold (=20), suggesting potential price rebound but investors must proceed cautiously and conduct further research before making any investment decisions.
Quarter Analysis
Canopy Growth reported negative 12% sales growth for its current quarter. However, Canopy’s projected sales growth estimates for its next two quarters are strong at 60% and 82.5% respectively – suggesting it may experience a rebound in sales in near future.
Regarding revenue growth, the company has experienced an annual year-on-year increase of 2.6% since January 2018, reaching 405.71M currently. This growth rate indicates an even and sustainable revenue stream for the business.
Overall, investors should closely track Canopy Growth’s sales growth over the upcoming quarters as its estimated growth rates indicate an optimistic outlook for its future performance. Furthermore, steady revenue growth over the past year provides a solid base for continued expansion in future years.
Equity Analysis
Canopy Growth Capital Management Inc (CGC): Here’s my investment outlook.
Canopy Growth Corporation (CGC), located in Smiths Falls, Ontario is an internationally recognized cannabis company operating within an emerging industry and thus subject to great uncertainty and risk. Yet CGC has established strong brand recognition and an impressive product selection to remain a market leader.
Canopy Growth has reported an estimated trailing twelve months earnings per share (EPS) figure of EUR-1.63 for their trailing twelve month earnings period ending September 2017, which indicates they are operating at a loss which is not uncommon within the cannabis industry. It should be noted however, that they have invested heavily in research and development and expansion activities that could potentially lead to greater profitability over time.
Canopy Growth has posted an ROE of negative -99.56% over its trailing twelve months, which should be cause for great concern as this indicates they are currently not producing profits for shareholders. It should be remembered, however, that Canopy has invested heavily into positioning its business for long-term growth, so it may take a bit longer before the company begins producing positive returns for their investors.
Canopy Growth’s financial performance isn’t ideal at present; however, due to its strong brand presence and diverse product portfolio as well as investments in R&D and expansion efforts. Therefore, investors who possess long-term investment horizons with high risk tolerance may consider Canopy Growth; it should be remembered though that investing in the cannabis industry can be highly speculative so due diligence must be conducted prior to making any definitive investment decisions.
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