Canopy Growth Corporation's (CGC - Free Report) European business has been gaining momentum on the back of several strategic investments and planned executions of policies.
We expect this strength to get reflected in first-quarter fiscal 2020 results, which are scheduled for release on Aug 15, after market close.
Click here to know how the company is likely to perform in the quarter to be reported.
European Investments Seem Strategic
Canopy Growth is spending on its outside Canada business to tap into its huge market growth potential globally. In recent times, the company acquired a number of European companies to extend and fortify its production footprint into one of the most promising regions of the world. The top-line contributions from these buyouts deserve a mention in the company’s results in the fiscal first quarter.
In February, the company bought Germany-based C3, Europe’s largest cannabinoid-based pharmaceuticals company with five approved cannabinoid therapies. The transaction has enabled Canopy Growth to offer European physicians the knowledge and therapies drawn from the gamut of synthetic to naturally-derived cannabinoid-based medicines.
In April, the company purchased Spain-based licensed cannabis producer Cáñamo y Fibras Naturales, S.L. (Cafina). As one of the three Spanish companies authorized to cultivate, distribute and export cannabis containing more than 0.2% of tetrahydrocannabinol (THC) for medicinal and research purpose, Cafina spurred tremendous growth potential for Canopy Growth.
In May, the company again made a strategic move in Europe with the purchase of England-based This Works. The integration of this natural skincare and sleep solutions provider has helped Canopy Growth to consolidate its ability to penetrate unexplored markets and introduce cannabidiol or CBD-based offerings that align with a well-established 34-plus country channel.
We expect Canopy Growth to recognize robust revenues from the above three takeovers in the upcoming quarterly release.
Stocks Worth a Look
Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings in the June quarter.
Aurora Cannabis (ACB - Free Report) has an Earnings ESP of +50.00% and a Zacks Rank #2.
Arcturus Therapeutics (ARCT - Free Report) has an Earnings ESP of +18.36% and a Zacks Rank of 2.
Intec Pharma Ltd. (NTEC - Free Report) has an Earnings ESP of +9.09% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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