Industry full of opportunity
The cannabis industry continued to see action in March with companies announcing new acquisitions, forays into new markets, and hiring new talent. Tilray (TLRY), for example, recently roped in a former Goldman Sachs executive to lead its merger and acquisition and global strategy. Aurora Cannabis (ACB) added Nelson Peltz as its new strategic adviser while HEXO (HEXO) announced that it will acquire Newstrike Brands.
In the above chart, we see three cannabis stocks’ YTD (year-to-date) performance. While Canopy Growth (WEED) and CannTrust (CTST) have delivered YTD returns above 50%, Tilray (TLRY)—for the most part—has underperformed these two peers (HMMJ). In our recent valuation update series, we compared how Tilray’s valuation multiples compare with other industry peers. We saw that Tilray and Cronos Group (CRON) were trading at a significant premium to their peers’ median. Read our full coverage in TLRY Is Too Rich for Jefferies—What about Other Cannabis Players?
In this series, we’ll discuss analyst ratings updates in March for three cannabis stocks—Canopy Growth, Tilray, and CannTrust. This research will expand on our previous ratings update series, Analysts’ Ratings Change for APHA, ACB, and CRON in March.
Tilray (TLRY) has been among the most popular names in the Canadian cannabis space. The company is scheduled to report its fourth-quarter earnings on March 18 after the market closes.
Hibbett Sports (HIBB) stock surged 22.3% as of 1:54 PM ET today as the company reported impressive results for fiscal 2019's fourth quarter, which ended on February 2.
Wall Street analysts expect a potential upside of 21.63% for Alexion Pharmaceuticals based on the stock's closing price on March 21.
Today, we got another round of dismal data points from Europe (VGK)(EZU). According to a Markit survey, Germany’s (EWG) March PMI Composite Output Index fell to a 69-month low of 51.5.
On March 21, US crude oil’s implied volatility was 24.9%, which was 6.7% below its 15-day average. Usually, lower implied volatility supports oil prices.
The overall cannabis sector took a hit today amid the broader market's declines. The volatility index (VIX) jumped 17.9%, and the cannabis sector is more sensitive than the market.
The tech-heavy NASDAQ Composite Index (QQQ) is on track to post its 12th weekly gain in 13 weeks.