Why Canopy Growth Is a ‘Buy’ before Its Earnings

Despite the recent surge, Canopy Growth is trading flat YTD. However, the stock has outperformed its peers and cannabis ETFs this year. Aurora Cannabis, Aphria (NYSE:APHA), and OrganiGram Holdings (NASDAQ:OGI) have fallen by 37.1%, 15.8%, and 27.3% YTD, respectively. MJ has also fallen by 16.8% during the same period. The weakness in the cannabis sectors appears to have dragged Canopy Growth stock down. Meanwhile, the impressive third-quarter performance has limited the company’s stock decline.

I have been bullish on Canopy Growth for some time. With Aurora Cannabis already reporting a strong performance in the comparable quarter, I think that Canopy Growth will follow suit. Given the company’s strong balance sheet and impressive growth prospects, I think that investors should keep accumulating the stock.

View more information: https://marketrealist.com/2020/05/why-canopy-growth-buy-before-earnings/

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