Aurora Cannabis is a risky stock that’s worth considering

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The cannabis company is rebounding from the troubles seen earlier this year

Any new company that enters the public stock market comes with risks for investors as the future of the company has not been set yet. However, having a few risky stocks as part of an investment portfolio also has the potential to generate significant profit, so considering investing in more risky options can be worthwhile. In the cannabis industry, there are a few companies that fit that mold and that, even though the companies are struggling in some areas, the chances of getting a good return on investment is high. Aurora Cannabis is posing as one of those risky stocks that’s worth considering.

Aurora has the potential to deliver impressive results in the long-term. For the past several months, cannabis stocks have been working on becoming profitable while fighting major external factors that have beaten down the industry. However, that hasn’t been enough to stop companies like Aurora from continuing to grow. Aurora started a transformation plan a few months ago with the main goal of improving its profitability and reducing the amount of cash that it is burning through with its operations. This ongoing strategy included changes in different areas like the reduction of its workforce and the selling of certain acquisitions made in the past.

Additionally, Aurora has been launching new products to the Cannabis 2.0 era, such as vapes, gummies, chocolates, baked goods and mints. Edibles have higher and better profit margins that can help the company’s profitability. Another great aspect that can bring benefits in the long term is that Aurora has been working on conducting clinical trials for medical cannabis, which can be a game-changer.

The stock has been recovering since its current-year low of $5.30, registered in May 2020. Aurora is being traded at $9.30 per share now and, once the company can manage to reduce operational costs and get positive results from the launch of Cannabis 2.0 products, the stock price could be making a jump.