Aphria Stock Forecast
I’ve made no secret of my concern for Aphria Inc (OTCMKTS:APHQF, TSE:APH) in 2018. What was once one of the best picks in the marijuana industry has had a very poor showing this year so far. Down over 40% year-to-date (YTD), Aphria stock has had ample opportunity to turn things around and yet continues to falter. So where does that leave us with the Aphria stock forecast?
Yesterday, in a similar article, I examined Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB) and explained how there are two ways to look at the marijuana industry: short-term and long-term.
In the case of Aurora, the short-term forecast is weak but the long-term view is much stronger.
The Aphria stock forecast, however, appears to be weak in both cases.
The difference being that, while Aurora is down big this year as well (though not as big as APHQF stock), the company has made moves that have positioned it to be a strong marijuana stock for years to come.
Aphria stock, on the other hand, is down big and hasn’t really done much in 2018 to turn things around or to instill confidence that it will be able to do so in the future.
Now, to be clear, I do believe that Aphria stock will recover. But the reason my Aphria stock forecast would suggest steering clear of the stock is that I believe there are simply better options out there in the marijuana stock market.
I believed that Aphria would hit a nadir where investors would then see the company as a bargain buy and jump back on the bandwagon. That has yet to happen in 2018. Instead, we’ve only seen the stock continue to fall, dropping another six percent last week.
What that tells me is that there isn’t much confidence in Aphria stock in the market. That could all turn around and, yes, eventually investors may see the company as appropriately priced or even undervalued and reinvest with a fury.
But APHQF stock has not been able to cultivate that trust in 2018. While there is still hope for gains to be made, I’ve lost faith in the company’s ability to generate investor interest.
Going back to the Aurora Cannabis comparison, multiple times this year, Aurora has been able to generate enough buzz to at least string a few days of gains together.
Aphria has been unable to do the same, with only a couple short-lived jumps in value.
Combine that with the company’s static position in the marijuana market, absent any surprise moves, and you have a stock that I believe needs to be given breathing room.
The Aphria stock forecast, for me, is not without hope. But there are simply so many superior options to Aphria stock at the moment that it’s hard to recommend the company in its current state.
The long-term picks I’ve written about with more vigor all are better situated to take advantage of the growing marijuana market, making Aphria stock a weaker opportunity at best.