The Canadian cannabis purveyor saw a leap in revenue for its second quarter. This was largely, but not entirely, due to higher sales in its home market.
The recent market correction is a reminder to investors that it's important to remain grounded even during bull markets. By this, I imply having a balanced portfolio and staying away from overvalued stocks.
Cronos Group's Chief Executive Mike Gorenstein was giving a tour of one of the company's cannabis growing facilities in 2018 when he heard that his company's stock was down sharply.
If we look at high-quality growth stocks, the revenue and EBITDA upside is not just for a year or two. Companies continue to grow at a CAGR of 20% to 30% in the long term.
Equity markets go through different levels of bullishness. There are times when blue-chips rally and growth stocks are subdued.
Cronos Group Inc. operates in Canada's recreational market and focuses on medicinal cannabis in lucrative markets like Germany and the U.K. The company is experiencing rapid revenue growth in Canada and Israel, with plans to enter new markets in the near future. Despite facing risks related to regulations and profitability, Cronos Group's low valuation makes it an attractive investment opportunity for long-term growth.
In a balanced portfolio, blue-chip stocks provide steady returns with the comfort of a low beta. On the other hand, growth stocks create big wealth.
In simple words, beta denotes the volatility of a stock in comparison to the index. If the stock has a beta of 1, it would move in sync with the index.
Sector and stock rotation is common in the world of investing. The hottest stocks of today are likely to be forgotten names of tomorrow.
Investors largely look at penny stocks to buy from a trading or speculation perspective. The idea is to sell when the stock doubles or triples.