The coronavirus pandemic has triggered one of the biggest market crash in recent history. Stock market indices are already down by more than 20% and officially in bear territory. Amidst growing concerns about the global economic recession, investments in the stock markets are slowly drying up. As bleak things might look, Charlotte’s Web (TSX:CWEB) Canopy Growth Corp (TSE: WEED) and Cronos Group Inc. (TSE: CRON), continue to provide exciting investment opportunities in Canada’s nascent cannabis landscape.
Cannabis stocks continue to provide exciting opportunities amidst the coronavirus pandemic, due to the strong demand for cannabis products in the market. Social distancing, lockdowns as well as quarantines might have taken a toll on the retail market, but not the cannabis industry. Demand for cannabis products and services appears to be resilient.
The fact that most cannabis stocks have pulled lower presents unique investment opportunities. Conversely, investors can leverage the opportunity to invest in cannabis stocks at a great discount as fundamentals continue to improve.
Charlotte’s Web Edge
Charlotte’s Web (TSX: CWEB) Web is one of the stocks that has pulled lower amidst the broader sell-off in the stock market. Amidst the pullback, $CWEB remains a top Canadian cannabis producer with the advantage of operating in key markets of the U.S and Canada.
With a market cap of more than $560 million, #CWEB is backed by a solid balance sheet ideal for navigating the current headwinds triggered by the COVID-19 pandemic. In addition, the company is becoming a force to reckon with when it comes to research and development. Likewise, it is poised to benefit a great deal on coming up with new products thanks to its R&D efforts.
Canopy’s Growth Improving Fundamentals
Canopy Growth Corp (TSE: WEED) is one of the biggest players in the Canadian Cannabis industry. While the stock has pulled lower due to the coronavirus triggered market crash, it remains well positioned for a big second-half rebound.
Unlike other players in the industry, #WEED is well financed to withstand any challenges that might affect near term demand of its products and services. A balance sheet with more than $1.6 billion leaves the company well financed to absorb any sluggish demand triggered by the coronavirus pandemic.
Coming into the coronavirus pandemic, $WEED reported impressive numbers are indicating revenue growth as well as gross margin expansion and narrowing net loss. The momentum should persist once the effects of the virus fade sometime in the second half of the year.
Cronos Group Vast Resources
Cronos Group Inc. (TSE: CRON) is another must watch amidst the current pandemic in the stock market. The stock, just like Canopy’s growth, stands out in part because a huge cash portfolio backs it. A balance sheet with more than $1.4 billion essentially means $CRON is well financed to withstand any near term negative impact from Covid-19 insolvency.
The vast resources accord #CRON the leeway to invest in strategic growth initiatives to enhance growth metrics once the virus fades. With the Canadian cannabis demand expected to improve in the second half of the year, Cronos Group should be one of the beneficiaries.