Is This The Best Pot Stock To Consider Now?
Cannabis 2.0 is on the rise as products with diversified business models are being made available. Investors are looking among the shambles to invest in cannabis stocks with chances of revival. HEXO Corp (TSX:HEXO) (NYSE:HEXO) stocks would be one such stock that could do exceptionally well in the Canadian cannabis industry.
Even though the revenue of Hexo has declined by 13% over the past few days, the company is expected to deliver a 34% annual increase in revenue. What would be more surprising for those at the fence with cannabis stocks is the fact that Hexo stocks continue to be traded with P/B of 0.73. The value of Hexo has fallen by 76& over the last 12 months, the company is already (possibly) or close to bottoming down. This means the company is probably at the weakest, which makes investment in the stock a strong buy. The target of $10 might seem optimistic, but it also indicates the potential the stock holds to climb up.
The cannabis industry itself has intriguing opportunities for capital gains. The cannabis-infused edibles, drinks, and whole other range of various cannabis products being made available, the industry becomes a sector with high chances of long-term growth. The investors now need to have patience and watch out for profitability instead of high momentum.
Aurora, on the other hand, also declined by 76% over the past 12 months and has a P/B of 0.67. The target set for the stock is mere $3, thus, arriving at a rating of ‘hold.’ When compared to Hexo – the stocks of which are increasingly being bought by insiders- insiders have been selling off their share of Aurora shares. Overall, Hexo appears to be a better long-term investment choice than Aurora.