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Acquisitions, savings and innovation: 6 cannabis stocks with significant potential

Jessie Ramsdale
14. 5. 2024
4 min read

In the current cannabis industry, many key players are focusing on innovation and cost reduction to cope with financial challenges and remain competitive. Following financial turmoil that has led to significant revenue declines for some companies, these companies are looking to improve their financial health through extensive savings programs that can reach into the hundreds of millions of dollars.

While some companies are focusing on expanding in the pharmaceutical sector with "cannabinoid" based treatments and expanding their operations into the global market, others are focusing on stabilizing and growing in the recreational cannabis areas while launching new products.

Canopy Growth $CGC+0.8%

Canopy Growth, as a cannabis pioneer, is constantly striving to innovate and reduce costs. After the financial turmoil of last year, which saw a 21% drop in revenue, the company is focused on improving its financial health with a cost-cutting strategy that includes savings of 270 to 300 million The company also plans to introduce new vaporizer products that are expected to come to market this year and these products are expected to boost its sales and increase competitiveness.

CGC
$9.18 $0.07 +0.77%
Capital Structure
Market Cap
699.5M
Enterpr. Val.
1.2B
Valuation
P/E
-0.6
P/S
1.9
Dividends
Yield
-
Payout
-

Aurora Cannabis $ACB+3.3%

Aurora Cannabis, a major player in the segment medical cannabis, is focused on expanding its global presence and increasing revenues. The company, which has operations in more than 25 countries, is focused on stabilizing its revenue in Canada and expects growth in Europe and Australia. Analysts expect its stock to see a modest increase, with potential upside from 18.5% to 48.2%. The company also plans to achieve positive earnings per share around 2025, which could position Aurora Cannabis as a key player in the medical cannabis industry.

ACB
$6.66 $0.21 +3.26%
Capital Structure
Market Cap
104.7M
Enterpr. Val.
102.0M
Valuation
P/E
-0.1
P/S
0.6
Dividends
Yield
-
Payout
-

Tilray $TLRY+1.1%

Tilray continues its expansion following the merger with the company Aphria, making it one of largest companies in the cannabis industry. The company is focused on increasing its international share in this sector and optimizing its brand portfolio with expanded distribution networks in the US, Canada and Europe. With the successful debt reduction and improved operating efficiencies, Tilray is looking to increase its net income, which was supported by strong sales in the most recent quarter. This growth could further strengthen its financial flexibility and competitiveness this year.

TLRY
$1.85 $0.02 +1.09%
Capital Structure
Market Cap
1.5B
Enterpr. Val.
1.9B
Valuation
P/E
-4.2
P/S
2.0
Dividends
Yield
-
Payout
-

Leafly Holdings $LFLY+4.8%

Leafly Holdings, which focuses on Recreational cannabis market, reported first quarter revenue of $9 million this year, down 19.5% year-over-year, and EBITDA of $1.4 million, a an increase of 70% compared to the same period last year. The company is looking to improve its operational performance and strengthen its sales strategies, which should lead to improved financial performance. Leafly shows that it is able to attract better quality clientele. Despite the challenges and volatility in share price volatility, which have fallen 74% over the past year, Leafly continues its efforts to stabilise and grow in a difficult environment.

LFLY
$1.76 $0.08 +4.76%
Capital Structure
Market Cap
4.2M
Enterpr. Val.
20.5M
Valuation
P/E
-0.6
P/S
0.1
Dividends
Yield
-
Payout
-

Jazz Pharmaceuticals $JAZZ+2.0%

With the acquisition of GW Pharmaceuticals, Jazz Pharmaceuticals has become an important player in the pharmaceutical sector focused on cannabinoid-based therapies. With revenues of $3.8 billion in 2023, representing 4% growth from the previous year, the company is expanding its activities in the fields of neuroscience and oncology. With strong research and development and progressive integration of GW Pharmaceuticals' capabilities, Jazz seeks to Innovation in "cannabinoid-based" therapies, which could further enhance its potential.

JAZZ
$106.06 $2.12 +2.04%
Capital Structure
Market Cap
6.7B
Enterpr. Val.
11.2B
Valuation
P/E
22.0
P/S
1.7
Dividends
Yield
-
Payout
-

Cronos Group $CRON

Cronos Group significantly strengthened its financial health in the first quarter of this year, narrowing its adjusted loss year-over-year to EBITDA by 37%. The company plans to further reduce operating expenses, which should lead to further savings 5 to $10 million. Cronos is also focused on strengthening its brand portfolio, with Spinach brand has seen significant growth across all products. With these strategies, Cronos maintains its growth potential and may represent an attractive investment opportunity in this sector.

CRON
$2.64 $0.00
Capital Structure
Market Cap
1.0B
Enterpr. Val.
158.4M
Valuation
P/E
-18.9
P/S
9.8
Dividends
Yield
-
Payout
-

Disclaimer: There is plenty of inspiration to be found on Bulios, but stock selection and portfolio construction is entirely up to you, so always conduct thorough self-analysis.

Source.

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