CGC Stock Forecast: Canopy Growth Looking Strong

cgc stock forecast 2018
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CGC Stock Forecast

With the Canadian marijuana legalization date now officially confirmed as October 17, 2018, the marijuana industry is abuzz with renewed excitement. While 2018 has been difficult for some companies, Canopy Growth Corp (NYSE:CGC) has been able to thrive, and the CGC stock forecast is only looking brighter now that marijuana legalization is set to land in Canada.

The CGC stock forecast, I would argue, is actually one of the brightest in the entire industry.

The company has demonstrated a resilience to the massive swings that are plaguing many other rival marijuana stocks, while still capable of making large gains in short amounts of time.

In other words, CGC stock is performing about as well as you could hope given the circumstances.

The company has surged about 44% since the beginning of the year, and that’s even after taking into the account the punishment that the industry took during the massive correction in the early goings of 2018.

After the announcement of the Canadian marijuana legalization date, the company shot up by about six percent, a good deal higher than most other marijuana companies.

Chart courtesy of StockCharts.com

The fact is that CGC stock has established itself as the industry leader and has reaped the benefits of holding that title.

While it has long been atop the industry by market cap, the reason I’m so bright on the CGC stock forecast is because the company has successfully transitioned from a strong company to the dominant company.

By way of comparison, take Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB). It’s a company I’ve long been hot on—even more so than Canopy Growth stock back when I first started writing about marijuana.

While Aurora is one of the larger-cap marijuana stocks, the company has not been able to establish the same amount of trust among investors the way Canopy has.

Aurora has gone on an acquiring spree, buying up companies left and right. One of the consequences of these acquisitions is that it will likely surpass CGC stock in terms of market cap.

And yet, this hasn’t paid off with significant stock gains for Aurora. The reason being that the company is very much seen as playing catch-up with Canopy—and perhaps doing so recklessly.

While I may not agree with that assessment, it’s certainly a fair point of view. Aurora seems very much the young hustler while Canopy is the stately reigning champ; in other words, investors trust CGC stock.

On top of all this, the company is still managing to be among the fastest-growing marijuana stocks on the market.

Usually, when you hit a certain size, growth slows. That wouldn’t be unexpected for CGC stock.

But the company has been able to avoid that fate, and instead performs about as well as some of the faster-growing marijuana penny stocks—without the added concern of extreme volatility.

A set Canadian marijuana legalization date is just icing on an already delicious cake.

Analyst Take

It’s not often you find a company that is both large and stable, while also having the ability to grow leaps and bounds in short periods. In Canopy, you have that company.

The CGC stock forecast is bright due to the fact that it has proven time and again that it belongs on top of the marijuana industry, and has gained investor recognition as a result.

While no company is a sure thing, for marijuana bulls, I’d say that Canopy Growth stock is one of the better investments available long-term right now.