After a rough start to the year, the cannabis sector continued to be under pressure in May and several stocks are trading at new 52-week lows.
From United States (US) multi-state operators (MSOs) to Canadian Licensed Producers (LPs), every sub-sector of the cannabis industry has been trending to the downside and we want to provide our readers with some important facts from May.
Now that the month of May is over, we want to highlight certain cannabis stocks and provide information on how they performed during the month.
- Canopy Growth (Nasdaq: CGC) (TSX: WEED) fell more than 35% in May and the stock is trading near its 52-week low. Momentum has been trending lower and the stock is trading at oversold levels. We consider this to be an important metric and will provide updates on it as needed. Last week, Canopy Growth remained under pressure and we will provide updates on how it trades from here
- Tilray Brands (Nasdaq: TLRY) (TSX: TLRY) plunged almost 30% lower in May and the stock came under heavy pressure late in the month. During the month, the company reported a series of developments that put additional pressure on the stock. When we listened to the company speak at the Canaccord conference, we were impressed with the growth of the business on the non-cannabis beverage side and consider this to be an underappreciated aspect of the story.
- Aurora Cannabis (Nasdaq: ACB) (TSX: ACB) was under less pressure when compared to its peers but still recorded a double-digit percentage decline in May. We continue to prefer companies like Canopy Growth and Tilray Brands to Aurora Cannabis and remain on the sidelines at current levels. Although we are not bullish on Aurora Cannabis, we continue to closely follow the stock and will provide updates on how it trades from here
- Organigram Holdings (Nasdaq: OGI) (TSX: OGI) fell more than 20% in May and continues to trend to the downside. We have been on the sidelines with the Canadian cannabis company and prefer other stocks to it. Last month, Organigram reported several developments and we will provide updates on how the story evolves from here. If the stock was to break below the $0.30 level, we may become interested in Organigram and will provide updates as needed
- Trulieve Cannabis Corp. (OTC: TCNNF) (CSE: TRUL) was a major underperformer in May and the stock fell almost 30% during the month. We have been monitoring the US cannabis company for a bottom and will let you know when we think it has found one. Last week, Trulieve came under heavy pressure and momentum is at oversold levels. We are closely following this metric and will provide updates on how the stock continues to perform
We believe these 5 stocks provide a well-rounded view of the cannabis sector and will monitor how they continue to trade. If you are interested in learning about undervalued cannabis companies, please send an email to firstname.lastname@example.org with the subject “Undervalued Cannabis Companies” to be added to our distribution list.
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