The week ending April 26 brought some relief to cannabis sector investors. The Horizons Marijuana Life Sciences ETF (HMMJ) rose as much as 5.2%, while the ETFMG Alternative Harvest ETF (MJ) rose 1% last week. Let’s look at some of the biggest gainers in the sector last week.
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Cronos Group rose
Cronos Group (CRON) has been battered since it announced its earnings this month. Cronos Group emerged as one of the biggest gainers last week. Cronos Group rose as much as 8%. The stock was already trading in the oversold territory based on its relative strength index. As a result, a rebound appeared imminent. We’ll have to see if the trend continues. The stock still appeared overvalued based on the EV-to-sales valuation multiple relative to its historical average and its industry peers.
Innovative Industrial Properties (IIPR) rose 7.8%, while Supreme Cannabis (SPRWF) rose 4.6% during the same period. CannTrust (CTST) was also in the green with a weekly gain of 3.7% during the same period.
The cannabis sector continued to struggle in April after it plateaued in March. The cannabis sector stocks made most of their gains in January after a big sell-off the previous month. However, the bounce was observed across the market and not just in the cannabis sector, which indicates that the market forces were the main driver.