Is Canopy Growth a Buy?
Canopy Growth (NASDAQ: CGC) has been a popular cannabis stock over the past year. Investors have enjoyed a return of 60% over the past twelve months, outpacing the S&P 500 and its gains of 45%. It was a sweeter rise for some than others, however. Many investors who didn't cash out at its peak in February were out of luck; the stock has fallen by nearly 50% since then.
The wind at Canopy Growth's back is a CA$5.8 billion investment for 38% of the company by beverage titan Constellation Brands (NYSE: STZ). But despite the huge influx of capital, the company is taking much longer than expected to turn that into bottom-line profits. Can you count on Canopy Growth to head higher if you buy it today?
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Source Fool.com
