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Although the shares of Calgary, Canada, cannabis producer Sundial Growers Inc . (SNDL) are up 38.8% in price year-to-date, the company’s unstable financials and bleak growth prospects could mean the stock may attract only limited investor attention in the near term. For its last reported quarter, SNDL’s gross revenue decreased 47.7% year-over-year to CAD12.74 million ($10.28 million), and its net loss amounted to CAD52.3 million ($42.18 million). Also, analysts expect its revenue to decline 9.9% from its year-ago value in the current year. The stock has declined 45.7% in price over the past nine months.
Therefore, we think fundamentally sound cannabis stocks OrganiGram Holdings Inc. (NASDAQ:OGI), Village Farms International, Inc. (NASDAQ:VFF), Akerna Corp. (KERN), and Greenlane Holdings, Inc. (NASDAQ:GNLN), which have much higher upside potential compared to SNDL, could be better bets now.
