STZ - 3 Reasons I'm Cautious About Canopy Growth Stock
Canopy Growth (NYSE: CGC) is one of the best-known names in the cannabis industry. However, like many large-cap Canadian cannabis companies, Canopy has fallen on tough times over the past year and a half. Its ongoing financial woes, the departure of its iconic former CEO (Bruce Linton), and the COVID-19 pandemic have all contributed to its troubles.
However, Canopy Growth still remains one of the largest companies in the industry with a market cap of CA$8.7 billion. The stock is trading at a discount to its year-ago price, meaning some investors might think now is a good time to add it to their portfolio.
I'd caution investors against getting too optimistic with Canopy Growth, even if it does look cheap. Here are three reasons why you might want to be cautious when it comes to this company.