Cannabis Stocks: Outlook for 2021
However, the cannabis sector has also proven itself to be an area of focus for investors hoping for long-term growth.
Here are two companies I think investors bullish on cannabis ought to consider in this space right now.
These growth rates have exceeded my expectations of late, due to slower rollouts of government-run cannabis stores domestically.
Additionally, Hexo also announced its acquisition of Zenabis Global, earning its access to the European market for medical cannabis.
The company’s strategic cost-cutting measures has improved production efficiency drastically and reduced its cost of goods sold by 65% and SG&A by a massive 41%.
Despite otherwise sunny results, there are some clouds hovering above the performance metrics of the Canadian pot market, courtesy of this pandemic.
Although many investors are still unsure of the level of impact from this catalyst, there’s certainly reason to believe that Canada’s top pot producers could show slower growth in the upcoming quarter or two.
Investors will undoubtedly pay close attention to these companies’ earnings in the coming quarters, so I expect more volatility on the horizon.
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