The Zacks Analyst Blog Highlights: Cronos, Altria, Canopy and Tilray
For Immediate Release
Chicago, IL -February 5, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Cronos GroupCRON , AltriaMO , Canopy GrowthCGC and TilrayTLRY .
Here are highlights from Monday’s Analyst Blog:
Here’s Why Cannabis Stocks Were Gaining on Monday
Shares of several notable cannabis stocks, including Aurora Cannabis and Cronos Group, were up more than 10% through early afternoon trading hours Monday on the back of continued industry deal making.
Aurora Cannabis saw bullish momentum after one of its partners, Radient Technologies, received a license that will allow it to extract higher-quality CBD. Radient is Aurora’s extraction-technology partner. Aurora said that the company can deliver higher throughputs than is possible with current benchmarks.
“With the upcoming new regulations permitting additional form factors and Radient’s recent receipt of its processor license, we are in a strong position to rapidly expand production of a broad portfolio of extract-based products, tying in well with the significant scale-up of our global cannabis and hemp operations,” said Aurora CEO Terry Booth in a press release .
Aurora shares were up roughly 11% to $8.22 by Monday afternoon. The stock has now rallied nearly 70% since December 21. Shares still have some room to run before retesting a 52-week high of $12.52 reached in early October, but ACB certainly seems to have regained its momentum.
Fellow cannabis stock CRON was moving even more rapidly on Monday. With no confirmed news from Cronos emerging so far today, the gains are likely a result of some combination of industry optimism, short squeezing, and continued interest from momentum investors.
Cronos shares were up more than 18% to $24.61 in afternoon trading. The stock has surged more than 108% in the past month alone, making it one of the market’s hottest stocks in any industry.
Realistically, this momentum dates back to early December, when tobacco giant Altria announced to it would take a 45% stake in Cronos for about $1.8 billion. Altria’s investment should help Cronos expand its production capacity and distribution footprint, catapulting the company up the ranks in terms of reach.
Other notable cannabis stocks in the green Monday include Canopy Growth ( +4%) , Aphria (+13%) , and Tilray (+7%) .
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss . This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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