AGFY - 3 Pot Stocks to Watch in May
It's been a rough start to the year for cannabis stocks, as demonstrated by the ETFMG Alternative Harvest ETF and the AdvisorShares Pure U.S. Cannabis ETF dropping more than 31% and 43%, respectively, so far this year.
Those falling prices may obscure the fact that some cannabis companies are seeing considerable growth, companies that are able to take advantage of the current downturn and increase market share. The falling prices also present an opportunity for investors to get in on stocks with increasingly strong financials while their share prices are low.
Agrify (NASDAQ: AGFY) , Village Farms International (NASDAQ: VFF) , and Jushi Holdings (OTC: JUSHF) had double-digit revenue growth in the fourth quarter and year-over-year in addition to annual triple-digit revenue gains in cannabis-related sales. On top of that, they all have relatively low debt-to-equity ratios (from 0.005 to 0.119), putting them in a position to ride out any short-term uncertainties in the cannabis market. On the other hand, they certainly haven't been immune to the downslide of cannabis stocks, with all three stocks' shares down 30% or more this year. However, that also means they are priced more attractively and make sound long-term plays, given their financial strength.
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3 Pot Stocks to Watch in May