Cannabis Stocks Watchlist: Cronos, Canopy Growth, Trulieve
The benchmark ETFMG Alternative Harvest ETF (MJ) - Get Report fell more than 7% this week, led by a late-week swoon that ended with the cannabis exchange-traded fund ending the week down 1%.
TheStreet's ETFFocus discussed how hot marijuana stocks have been to start the year and pointed out the performance of four cannabis ETFs in 2021.
If you're looking for the best stocks to invest in in the cannabis sector, TheStreet's Debra Borchardt shared her top stock picks in the cannabis sector for 2021 at the beginning of the year.
Here is a list of the cannabis stocks to watch and their performance from this past week by the percentage change at the close of trading on Feb. 26.
Cronos Group Inc | Decreased -11.6%
Shares of Cronos Group dropped after the Toronto cannabis company swung to a fiscal-first-quarter loss on a more than doubling of revenue.
The loss was 31 cents a share, compared with a profit of 17 cents a share in the year-earlier quarter. Revenue more than doubled to $17 million from $7.3 million.
Aurora Cannabis Inc | Decreased -10.3%
On Wednesday, Jefferies Analyst Owen Bennett reiterated his underperform rating on Aurora (ACB) - Get Report as the company's disappointing earnings last week "only reinforced our concerns on its underlying business."
"Second, given the near-term debt overhang and its high cash burn rate, we raise questions marks on whether Aurora's balance sheet is strong enough to support a potential US push," Bennett said while raising his price target to C$9.44 ($7.51) from C$4.59 per share.
Canopy Growth Corp | Decreased -15.9%
Canopy Growth (CGC) - Get Report was also downgraded to underperform by Bennett on Wednesday on valuation concerns.
"Bulls will argue Canopy's multiple is deserved given possible near-term US entry. While its US optionality is the best among Canadian names, it is still too expensive for us,' Bennett said.
Jefferies notes that Canopy's multiple is 16.6x future revenue compared to the average of 5.4x for other big U.S. players.
Trulieve Cannabis Corp. | Decreased -3%
Trulieve Cannabis is continuing to garner more attention as a popular cannabis pick, especially after it opened four new locations. Trulieve is one of James "RevShark" DePorre's favorite cannabis stocks in the sector.
TheStreet Quant Ratings doesn't have a rating for Trulieve Cannabis.
Village Farms | Increased +4.8%
Village Farms is a favorite of Raymond James, and the cannabis company will present at its 42nd investors conference this upcoming Wednesday. Village Farms (VFF) - Get Report is one of the top choices of our Real Money experts as retail investors continued to throw money at the Canadian names listed.
TheStreet Quant Ratings rates Village Farms as a Hold with a rating score of C-.
GW Pharma | Increased +0.7%
GW Pharmaceuticals (GWPH) - Get Report is up over 46% since it was purchased by Jazz Pharmaceuticals
TheStreet Quant Ratings rates GW Pharma as a Sell with a rating score of D+.
