Replies to post #124330 on Canopy Growth Corp (WEED)

[john1311]

This article - 3 Canadian Stocks That Could Double Your Investments -appeared first on The Motley Fool Canada .

Canopy Growth

Although cannabis stocks are going through a challenging period, the sector offers healthy growth prospects amid the increasing legalization and expansion of medical usages. So, I have selected Canopy Growth (TSX:WEED) (NYSE:CGC) as my third pick. The company looks to strengthen its market share in the cannabis-infused beverage and flower segments through its new product launches.

The company also recently acquired Supreme Cannabis and Ace Valley, which expanded its product offerings in the premium flower segment while also boosting its production capabilities. Meanwhile, the company is yet to attain profitability. However, the company has taken several initiatives, such as optimizing its supply chain and right-sizing its production, thus lowering its expenditure while improving its margins.

The company’s management hopes to report positive adjusted EBITDA in the second half of fiscal 2022. Further, its financial position also looks healthy, with its cash and cash equivalents standing at $2.3 billion as of March 31. Despite its healthy growth prospects, Canopy Growth trades at a 61.4% discount from its February highs. So, I believe investors should utilize this correction to accumulate the stock to earn superior returns.