Is Canopy Growth a Buy After Rallying 17% Last Week?

Shares of pot producer Canopy Growth ( NASDAQ:CGC ) jumped more than 17% last week, rising to as much as $9.61 at one point — the highest level it has been at since the first day of trading in 2022. Such significant price movements aren’t all that uncommon in a volatile sector like cannabis. However, with the company reporting earnings last week, investors may be wondering if that recent jump had more to do with a strong quarterly performance and the start of a potential turnaround for the struggling business. Let’s take a closer look at how the company did last quarter, if that was the likely catalyst behind the stock’s jump, and whether it’s a buy today. CGC data by YCharts Was a strong earnings report behind the spike in share price? The key numbers investors often focus on in earnings reports are sales and profits. That’s especially true in the Canadian cannabis sector, where profitability is rare and even sales growth has become a challenge . When Canopy Growth reported earnings, it was really a mixed bag of results, although I’d argue there was more bad than there was good. Although sales of 141 million Canadian dollars for the… Read full this story

Is Canopy Growth a Buy After Rallying 17% Last Week? have 283 words, post on www.fool.com at February 15, 2022. This is cached page on Vietnam Colors. If you want remove this page, please contact us.