Canopy Growth ready for a breakout

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The stock could run if it doesn’t dip below $48

Shares in Canopy Growth have been steadily climbing over the past several trading sessions. With that in mind, it’s possible that a breakout is coming, especially if the stock can maintain a level above $48 on the NYSE. This hasn’t been a problem so far and Canopy is currently trading at $48.61, an increase of 2.52% over the past 24 hours. At this rate, great things could be coming.

Canopy recently announced that it was going to purchase Acreage Holdings for $300 million cash. However, the deal was made even sweeter when Canopy added 0.58 shares for each subordinate voting share of Acreage and the final value soared to $3.4 billion. This quickly made Canopy an extremely valuable company to investors.

Acreage is found in 20 states and the acquisition by Canopy will give it immediate access to new markets. As the country inches toward federal legalization of cannabis, those companies with the largest footprints are the ones that are going to benefit the most and the quickest.

If things continue as they have been, with Canopy staying above $48, some analysts believe the price could go up to at least 72%. This would be a 90% upside from the current levels, giving some lucky investors an incredible return on investment. The highest the stock has been was $59 and it is highly likely that a new high is on the horizon in the very near future.

Canopy is in a great position financially. For the most recent quarter, it picked up $60.8 million in revenue – almost the same as it saw for the entire previous year. Coming up next, analysts are predicting $600 million in the next fiscal year, which starts in three months. While any marijuana stock is speculative at this point, it would be a smart move to take a closer look at Canopy before it’s too late.