(C) Reuters. Avoid These 2 Cannabis Stocks that Wall Street Hates
While most cannabis operators have delivered stellar returns lately on the back of increasing legalization of marijuana in the United States and expanding domestic and international markets, some are still not able to capitalize on the tailwinds. Wall Street analysts particularly dislike fundamentally and financially weak cannabis stocks Aurora Cannabis (NASDAQ:ACB) and Sundial Growers (NASDAQ:SNDL). And we think that given the heated competition in the industry, these stocks are best avoided now. Read on.Optimism about the potential for further legalization of marijuana in the U.S.–including at the federal level–have this year improved the prospects of pot companies significantly. But while most cannabis operators are well positioned to take advantage of the growing domestic and international marijuana market, some companies seem to have lost steam due to stiff industry competition.
As legalization efforts gain momentum, several new players from Canada and the United States are setting up new cannabis operations. This has dramatically increased the level of competition in the cannabis space.
Against this backdrop, Wall Street analysts are extremely bearish about the prospects of Aurora Cannabis Inc. (ACB) and Sundial Growers Inc . (SNDL). Both companies are struggling to stay afloat financially. And, considering that their fundamentals are weak and losses high, we believe it’s wise to avoid them now.
Avoid These 2 Cannabis Stocks that Wall Street Hates
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