These cannabis stocks could see gains because of COVID-19

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Cannabis sales are on the rise as a result of the coronavirus, and a few companies will benefit more than others

Even though the cannabis sector has been taking hard hits for more than a year, with some companies still struggling to get back, this crisis might also bring hope for other companies. Just as virtually every sector in the stock market has been dropping due to the COVID-19 outbreak, the cannabis industry that was starting to show signs of recovery in the last couple of months did, too. Some of these companies might be a good investment option amid the situation around coronavirus and are worth keeping track of.

Aphria Inc is the first one on that list. It has been emerging as a promising cannabis company in recent times, although it has been trading at its lowest level since it entered the public stock market. What is interesting about Aphria is that, even though its stock value fell over 80% in the last year, it has had a better financial performance than most companies with profits reported in two out of the past three quarters, which makes it stand out.

GW Pharmaceuticals is next on the list. It declined by 50% in the last 12 months, getting dirt-cheap valuations. As opposed to Aphria, GW has not reported profits, although the company has been going through significant growth lately. One of the company-owned medicines, Epidiolex, is reporting massive earnings when presenting its full-year figures. The company reported this medicine to have generated $296.4 million in sales, which is 95% of the company’s total revenue.

Lastly, Tilray Inc. is worth considering. This cannabis business has been inevitably affected by several of the factors that crushed the cannabis industry last year, leading to a 98% fall in the last 18 months. By the beginning of this year, that company was showing signs of recovery, with its total losses reported going down from $219 million to only $31 during Q4. Its lack of cashflow might compromise its growth, but it is worth taking a look at this year for possible investment.