The coronavirus pandemic could not have come at a worse time for the cannabis sector. The industry had already been struggling due to oversupply issues and slow rollout of stores. Stocks had recorded losses for many months, and the latest turmoil in the markets has resulted in deeper losses over the past few days.
However, even in the middle of the almost total carnage in cannabis stocks, there are some stocks that investors could consider tracking at this point. Here is a look at two such stocks that could be considered by investors.
One of the cannabis socks that could be put into the watch lists by investors at this point in time is that of Aphria Inc (TSX:APHA) (NYSE:APHA). It is clearly one of the more promising companies in the industry, but on Friday, the stock rose after the stock got an upgrade from Bank of America analyst Christopher Carey.
Carey upgraded the stock from neutral to buy but lowered his price target from $6.13 a share to $3.44 per share. That being said, it still represents a 405 upside from Thursday’s close. Carey said that the company’s strong cash position and its success in growing its market share were the two main factors behind the upgrade. The bullish note from Bank of America must come as a major boost to the beaten-down sector. On Friday, the Aphria stock gained 6%.
The other stock that could be worth tracking is that of Cresco Labs Inc (CSE:CL) (OTCQX:CRLBF). Last Thursday, the company announced that it is going to keep its dispensaries open at the usual operating hours. The company stated that the stores would operate in a way that is permitted by the law of the land.
Due to the stay at home directives handed out by several American governments in light of the Coronavirus pandemic and that could reduce the footfalls at cannabis dispensaries considerably. While Cresco stated that it is going to keep its stores open, it also announced that it is taking steps to “ensure adequate social distancing between employees and consumers.” That being said, it is still a bit of a positive for investors that the company is going to keep its stores open.