This Pot Stock Is Up Around 50% in 3 Months. Can It Continue Soaring?
Marijuana stocks are still struggling to start 2020, with the Horizons Marijuana Life Sciences ETF up just 2% since the beginning of the new year. Many companies are low on cash and a lack of profitability is only making investors even more hesitant to bet on the industry's recovery just yet. However, Curaleaf Holdings (OTC: CURLF) has been bucking that trend, and it's been generating some stunning returns over the past few months. The stock is up more than 45% in the past three months (the Horizons ETF is down 15% during this time) and year-to-date is up 10%.
It's a remarkable turnaround for the stock that has many investors wondering if it can continue rallying even further. Let's take a look at what's behind Curaleaf's recent movement and if investors should buy shares of the company today.
The big catalyst behind the company's strong rally was when Curaleaf reported its third-quarter earnings in November that showed record revenue of $61.8 million. Even more encouraging, the company recorded positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $9 million as well. Although it reported a net loss of $7.4 million, it's still a fairly mild loss, and adjusted EBITDA can be a better indicator of the company's performance since it excludes non-cash items like depreciation and amortization.
Source Fool.com
