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Bull Of The Day: High Tide

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High Tide (HITI - Free Report) is a Zacks Rank #2 (Buy) that has an A for Value and an A for Growth. The company is in the marijuana space and there is a lot of talk about marijuana being rescheduled in order to ease restrictions for research.  The company is slated to report again on September 15 and the stock is breaking out to new 52 week highs.  Let’s learn more about why this stock is the Bull of the Day.

Description                                              

High Tide, Inc. is a retail-focused cannabis company, which engages in the manufacture and distribution of consumption accessories. It operates through the following segments: Retail, Wholesale, and Corporate. Its brands are Canna Cabana, Fastendr, Grasscity, Smoke Cartel, Daily High Club, DankStop, NuLeaf Naturals, FAB CBD, Blessed CBD, Valiant Distribution, and Famous Brandz. The company was founded by Harkirat Grover in 2009 and is headquartered in Calgary, Canada.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

High Tide (HITI - Free Report) has posted tthree consecutive misses of the Zacks Consensus Estimate as well as one beat.  The takeaway from the earnings history is that the company has posted two misses of one cent, and a beat and miss of 3 cents.

The most recent earnings print saw the company post -$0.03 when the consensus was at -$0.02.  That one cent miss translates into a positive earnings surprise of 50%.

Earnings Estimates Revisions

Earnings estimate revisions is what the Zacks Rank is all about. 

Estimates are moving higher for High Tide (HITI - Free Report) .

The full year 2025 has increased from a loss of $0.05 to a loss of $0.04 over the last 60 days.

2026 has increased from a gain of $0.06 to a gain of $0.11 over the same time period.

Growth

There is good growth projected for High Tide (HITI - Free Report) .  This fiscal year analysts are expecting $421M in revenue which would be good for 10.7% topline growth.

Next fiscal year, the consensus is calling for $548M and that would be good for 29.9% sales growth.

Valuation

There is no forward PE for High Tide (HITI - Free Report) but if we extend the time horizon out to the end of next fiscal year when we do have earnings the multiple works out to be 31x.  The price to book is low at 2.9x and that certainly has room to grow based on its peer group average.  Price to sales comes in at 0.74x.


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