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What Analysts Recommend for Cannabis Stocks in March

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Updated

Cannabis sector

The cannabis sector (HMMJ) gained investor attention at the beginning of 2018 on expectations of explosive growth following the legalization of recreational use in Canada. However, most stocks are currently trading in the negative territory YTD (year-to-date) as of March 21, 2018.

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Stock performance

Most of the major cannabis stocks are in the red on a year-to-date basis. Among the ten companies in the above chart, MedReleaf (MEDFF) and Aphria (APHQF) fell the most YTD, declining by 34% each. Supreme Cannabis (SPRWF) was next with a 33% fall YTD.

Aurora Cannabis (ACB) and CannTrust (CNTTF) followed with each declining by 19% over the same period. Emerald Health (EMHTF) declined by 18%. Organigram (ORGMF) was down by 7% and Hydropothecary (HYYDF) was down by 6% YTD.

Canopy Growth (WEED) and Cronos (CRON) were also in the negative territory declining by 2% and 6% YTD, respectively.

Unlike these cannabis producers, Scotts Miracle-Gro (SMG) does not cultivate cannabis but supplies equipment to support cannabis farming. The stock fell 22% YTD.

Sector ETFs

The ETFMG Alternative Harvest ETF (MJ) delivered losses of 14% YTD, while the Horizons Marijuana Life Sciences ETF (HMMJ) fell 15% YTD.

The more recently debuted ETFs Evolve Marijuana ETF (SEED) and the Horizons Emerging Marijuana Growers Index ETF (HMJR) have delivered losses of 10% and 6%, respectively, since inception.

Series overview

With these disappointing performances, it is time to review analysts’ ratings and price target changes on some of the above stocks to get insight into the direction these stocks may head in the next 12 months.

We will begin with Canopy Growth.

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