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Canopy Growth (CGC) Improves Liquidity With Another Selloff
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Canopy Growth Corporation (CGC - Free Report) , a prominent North American cannabis and consumer packaged goods (CPG) company, recently completed the sale of its facility in Modesto, CA. This marks a significant step in its ongoing divestment action.
With this move, the company has made progress with its organizational transformation plan, which is expected to be beneficial to Canopy Growth's business operations.
More on the Divestment Plan
With the latest transaction, a total of five facilities have now been sold for proceeds of CAD 81 million since Apr 1, 2023. Canopy Growth is on track to generate up to CAD 150 million from facility divestitures by Sep 30, 2023.
Sale to Improve Liquidity and Profitability
The decision to divest facilities aligns with Canopy Growth's organizational transformation plan, which was announced during the previous fiscal year. The sale of these assets has several key advantages, the foremost being improved liquidity. The substantial proceeds generated from these divestitures will enhance CGC’s financial flexibility and strengthen its balance sheet.
Further, by offloading these sites,Canopy Growth will benefit from operational expenditure reductions. This means the company will no longer have to bear the costs associated with running these facilities, resulting in cost savings that will contribute significantly to its bottom line.
As a result, Canopy Growth is now better positioned to achieve its goal of becoming an asset-light, North America-focused cannabis business.
Image Source: Zacks Investment Research
Market Prospects in Cannabis Business
Going by a Grand View Research report, the global legal marijuana market has witnessed remarkable growth in recent years and is projected to continue its upward trajectory in the coming decade. Valued at $16.7 billion in 2022, the market is expected to expand at a robust CAGR of 25.4% from 2023 to 2030.
With changing government policies, increasing demand for medical marijuana and the rise of innovative applications, the industry is poised for noteworthy growth in the coming years. As more countries embrace this flourishing sector, the global legal marijuana market is expected to revolutionize healthcare and create new economic opportunities.
As the cannabis industry continues to evolve, Canopy Growth remains committed to delivering innovative products that enhance the lives of consumers while creating sustainable value for shareholders.
Share Price Performance
In the past year, shares of the company have plunged 86.2% compared with the industry’s decline of 20.5%.
Zacks Rank and Key Picks
Canopy Growth currently carries a Zacks Rank #3 (Hold).
Haemonetics has an earnings yield of 4.18% compared to the industry’s -2.25%. Haemonetics’ earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 12.21%. Its shares have rallied 26.5% against the industry’s 21.6% decline over the past year.
Penumbra, sporting a Zacks Rank #1 at present, has an estimated growth rate of 64.1% for 2024. Penumbra shares have gained 173.7% compared with the industry’s 12.3% rise over the past year.
PEN’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 109.4%.
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an earnings yield of 4.78% compared to the industry’s -7.07%. Shares of HOLX have risen 15.4% compared with the industry’s 12.3% growth over the past year.
Hologic’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 27.3%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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Canopy Growth (CGC) Improves Liquidity With Another Selloff
Canopy Growth Corporation (CGC - Free Report) , a prominent North American cannabis and consumer packaged goods (CPG) company, recently completed the sale of its facility in Modesto, CA. This marks a significant step in its ongoing divestment action.
With this move, the company has made progress with its organizational transformation plan, which is expected to be beneficial to Canopy Growth's business operations.
More on the Divestment Plan
With the latest transaction, a total of five facilities have now been sold for proceeds of CAD 81 million since Apr 1, 2023. Canopy Growth is on track to generate up to CAD 150 million from facility divestitures by Sep 30, 2023.
Sale to Improve Liquidity and Profitability
The decision to divest facilities aligns with Canopy Growth's organizational transformation plan, which was announced during the previous fiscal year. The sale of these assets has several key advantages, the foremost being improved liquidity. The substantial proceeds generated from these divestitures will enhance CGC’s financial flexibility and strengthen its balance sheet.
Further, by offloading these sites,Canopy Growth will benefit from operational expenditure reductions. This means the company will no longer have to bear the costs associated with running these facilities, resulting in cost savings that will contribute significantly to its bottom line.
As a result, Canopy Growth is now better positioned to achieve its goal of becoming an asset-light, North America-focused cannabis business.
Image Source: Zacks Investment Research
Market Prospects in Cannabis Business
Going by a Grand View Research report, the global legal marijuana market has witnessed remarkable growth in recent years and is projected to continue its upward trajectory in the coming decade. Valued at $16.7 billion in 2022, the market is expected to expand at a robust CAGR of 25.4% from 2023 to 2030.
With changing government policies, increasing demand for medical marijuana and the rise of innovative applications, the industry is poised for noteworthy growth in the coming years. As more countries embrace this flourishing sector, the global legal marijuana market is expected to revolutionize healthcare and create new economic opportunities.
As the cannabis industry continues to evolve, Canopy Growth remains committed to delivering innovative products that enhance the lives of consumers while creating sustainable value for shareholders.
Share Price Performance
In the past year, shares of the company have plunged 86.2% compared with the industry’s decline of 20.5%.
Zacks Rank and Key Picks
Canopy Growth currently carries a Zacks Rank #3 (Hold).
Some stocks in the broader medical space are Haemonetics (HAE - Free Report) , Penumbra (PEN - Free Report) and Hologic, Inc. (HOLX - Free Report) .
Haemonetics has an earnings yield of 4.18% compared to the industry’s -2.25%. Haemonetics’ earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 12.21%. Its shares have rallied 26.5% against the industry’s 21.6% decline over the past year.
HAE sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Penumbra, sporting a Zacks Rank #1 at present, has an estimated growth rate of 64.1% for 2024. Penumbra shares have gained 173.7% compared with the industry’s 12.3% rise over the past year.
PEN’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 109.4%.
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an earnings yield of 4.78% compared to the industry’s -7.07%. Shares of HOLX have risen 15.4% compared with the industry’s 12.3% growth over the past year.
Hologic’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 27.3%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.