The increased volatility in the cannabis stock market has affected all the players in the race. Investors’ interest in finding the right pot stock to buy is in high gear. Driven by strong performances among some pot stocks in the sector and the group’s powerful projected long-term growth dynamics. Though the legalization of recreational marijuana has made cannabis as a mainstream one, still, the industry remains indecisive. And so are marijuana stocks.
Silver Lining For Aphria
One such mainstream player in the pot stock market is Aphria Inc (APHA Stock Report) whose stocks have been dwindling after witnessing a steep high. There has been a continuous drop in the shares for this marijuana as stock. This decline has been roughly about 40% from the February highs and almost 60% from its 52-week highs. With the share price hitting bottom hard, it is a matter of grave concern not only for the company but also for those who have invested their money in its shares.
Almost all the companies in the company are facing a tough time. Earlier this week, a ray of hope was seen for Aurora Cannabis whose shares dropped after reporting earnings but managed to sustain and avoid a lower low. This could be seen as a positive sign despite the revenue miss and bearish reaction in the stock price.
Investors Keep Focus on Pot Stocks
To everyone’s surprise, the stock of Aphria is actually trending higher and is proving to be stronger than is apparent. Though the shares of the company have been dragging hard and were down almost 50% in just a few months, then better-than-expected earnings propelled shares higher, as this pot stock ran from a low of $5.02 to roughly $7.50 just a day later.
The sentiments of the investments are worse than expected as cannabis stocks have people investing with caution. But then, this is not the END. The scenario would not remain the same and thus investors should not lose hope and be disheartened. Investors should now channelize their worldly wisdom on the cannabis industry and look for stocks showing relative strength. It is crucial to categorize the stocks with relative strength as they have the potential to outperform when the group comes back in favor.
Thus, the stock of Aphria is not showing strength relative to the market, it is showing strength when brought into the light to its peer. The stock of Aphria is still up 16.2% so far in 2019. When a comparison is drawn with its counterpart’s viz. a viz. Canopy Growth, Aurora Cannabis, and Cronos Group, ACB and CGC, Aphria is still in a better position. It has even managed to outperform the major players of the industry Tilray and New Age Beverages which are both down in 2019. Of the group, Aphria stock is the top performer over the last six months. For the last timeframe, APHA stock is up almost 11%. So this is certainly worth paying attention to. Thus, there is uptrend support of Aphria stocks. Investors need to cautiously look and monitor this marijuana stock and watch for a bounce.