Aphria stock has been moving sideways after a 20% jump in the month of August. Let's find out if it's the right time to invest in Aphria Inc (TSX:APHA) (NYSE:APHA).
Outperforming the Cannabis Sector?
The cannabis sector has gone through a bit of a slump over the past few months, and many of the biggest companies have seen their stocks crashing due to it. However, even if a sector has a tough time, there are certain companies that buck the trend, and it seems that Aphria stock is one that investors are looking closely at. Although it has had its own troubles during the slump, Aphria is a company that could be a safe long-term investment since the company primarily operates in the medical marijuana space.
Aphria stock has performed impressively since it published its fourth-quarter financial results. The company generated strong growth as far as production is concerned and stated that it had planted as many as 200,000 plants in the portion of the facility that had been expanded. As of August 2, the entire facility can boast of a total of 500,000 plants. At the time, Aphria stock rose to more than $7.00 on the NYSE market but gave up the gains later on.
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Additionally, costs have also been curtailed by installing a new packaging machine. Aphria is awaiting the license from Health Canada for its 1.3 million square foot greenhouse facility named Aphria Diamond. Once that facility is operational, the company will be able to produce 255,000 kilos of product annually.
The company has expanded into the international medical marijuana market in a big way as well, and that could prove to be a major trigger for the next phase of growth for Aphria. It has already managed to get a license in Germany, while its presence in South America is considerable.
Although the company is determined to enter the United States market at some point, it is currently holding its cards close to its chest with regards to its plans. At the end of the day, the company’s high-quality products have the potential to be one of the market leaders in the long run and hence, Aphria stock could well prove to be a smart bet.
What do you think?
Featured image: Canva
