Undervalued Cannabis Stocks to Consider

 

By Rolling Up


The stock market volatility has caused a culture of excitement around investing on Reddit as legalization becomes widespread in the U.S. and is becoming one of the fastest-growing industries for the years to come. In many ways, cannabis finances are still a mess. Profitability is hard to come by as the landscape shifts. 


Despite the hype, there are considerations you should consider before investing in cannabis stocks. Cannabis stocks are incredibly volatile because market valuations change with the hype. When investing, it should be taken with extreme caution. 


Making the right investments can lead to long-run profits. If you’re thinking about investing in the cannabis industry, here are some currently undervalued stocks that are currently in the market:


OrganiGram Holdings (NASDAQ: OGI)

OGI has trended 92% growth over the past six months. Founded in 2013, OrganiGram is a provider of medicinal and recreational cannabis in Canada. The company focuses on producing high-quality, indoor-grown cannabis for patients and adult recreational consumers in Canada and developing international business partnerships to extend the company’s global footprint. Since July 2020, the company has launched 53 new products. It is expected that 14 new products will be launched in the second quarter of this year. In the first quarter of 2021, OrganiGram generated $300,000 in sales. There’s still room for growth with this company in the future.



HEXO Corp. (NYSE: HEXO)

HEXO Corp. is an award-winning consumer packaged goods cannabis company that creates and distributes prize-winning products to serve the global cannabis market. The stock has surged over 165% in the last six months. The company has reported revenue growth of 114% on a year-on-year basis. As innovation continues in the cannabis beverage market space, it’s another reason to consider the stock. The North American cannabis-infused beverage market is expected to reach $1.56 billion by 2026. 


Sundial Growers (NASDAQ: SNDL)

Sundial Growers is a company focused on delivering premium products with a focus on inhalables. The premium products are currently sold in the form of flowers, oil, vapes, and pre-roll. Sundial is also launching a portfolio of cannabis-infused chocolate bars and beverages to expand its product offerings. As the company is undergoing a transformation with the reduction of debt and is increasing its product portfolio, there’s room for growth.

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