During the last year, the cannabis sector has been beaten down and many high-profile operators are trading at 52-week lows.=
Although the negative trend has been a constant theme since early 2022, the size of the declines has exceeded our expectations. While we don’t plan to try and catch a falling knife when it comes to investing in the sector, we are closely following price movements and trading volume to better understand the current trend.
Today, we want to highlight the one-year performance of 20 North American cannabis companies so our readers can better understand the amount of pressure on the sector.
- Canopy Growth (Nasdaq: CGC) (TSX: WEED) – down 78%
- Green Thumb Industries (OTC: GTBIF) (CSE: GTII) – down approx. 60%
- Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWF) – down more than 80%
- Tilray Brands (Nasdaq: TLRY) (TSX: TLRY) – down approx. 65%
- Aurora Cannabis (Nasdaq: ACB) (TSX: ACB) – down more than 80%
- SNDL Inc. (NASDAQ: SNDL) – down more than 75%
- Columbia Care Inc. (OTCQX: CCHWF) (CSE: CCHW) – down more than 80%
- Jazz Pharmaceuticals plc (Nasdaq: JAZZ) – down less than 10%
- Cardiol Therapeutics (Nasdaq: CRDL) (TSX: CRDL) – down 65%
- Innovative Industrial Properties, Inc. (NYSE: IIPR) – down more than 60%
- Charlotte’s Web Holdings, Inc. (OTC: CWBHF) (TSX: CWEB) – down 70%
- Verano Holdings (OTC: VRNOF) (CSE: VRNO) – down 70%
- Trulieve Cannabis Corp. (OTC: TCNNF) – down approx. 75%
- Curaleaf Holdings (OTC: CURLF) (CSE: CURA) – down 62%
- High Tide (Nasdaq: HITI) (TSX Venture: HITI) – down 70%
- HEXO Corp. (Nasdaq: HEXO) (TSX: HEXO) – down more than 80%
- Cronos Group (Nasdaq: CRON) (TSX: CRON) – down 50%
- Jushi Holdings (OTC: JUSHF) (CSE: JUSH) – down more than 80%
- CEA Industries (Nasdaq: CEAD) – down 67%
- GrowGeneration Corp. (Nasdaq: GRWG) – down 65%
Based on this subset of data on cannabis stocks, it is easy to recognize how challenging things have become for publicly traded cannabis companies. The best performer of the 20 operators was Jazz Pharmaceuticals which is down less than 10% in the last year.
Of the 20 cannabis companies listed, 95% of them have dropped more than 50% in the last year. 25% of the companies that are covered have fallen more than 80% in the last year and we find this to be significant.
We were surprised by the number of stocks that are down more than 70% and believe the weakness is overdone. Although we think the selloff has been too significant, we believe the sector will not turn around until some form of legislation is enacted in the United States.
If you are interested in learning about cannabis companies that we consider to be undervalued, please send an email to email@example.com with the subject “Undervalued Cannabis Stocks” to be added to our distribution list.
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