The legalization of marijuana in Canada last year resulted in an almighty rally in some of the leading pot stocks, and Aurora stock was certainly one of them. Aurora Cannabis (TSX:ACB) (NYSE:ACB) is one of the biggest players in the industry, but during the downturn that the industry experienced over the past months, Aurora stock lost significant value as well.
Key Analysis
Hence, it is worthwhile having a closer look at Aurora Cannabis to figure out whether this stock should be considered by investors. Aurora stock has plunged to as low as $3.44 from $11 during the past 12 months, and while that could put off some investors, some could consider it to be a reasonable price.
Although the company has managed to grow at a remarkable pace over the past months, the stock price still cannot be classified as cheap. However, at the same time, it should be kept in mind that Aurora is a large player in a growing industry, and at this point, it has a presence in as many as 25 countries.
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Major Presence
On the other hand, the company's work in the medical cannabis space has been extensive. Aurora Cannabis currently has as many as 40 researchers in its payrolls, and if the medical sector opens up significantly, then it could lead to a big payday. In addition to that, the company is also involved in the CBD wellness space, which is expected to grow into a multibillion-dollar industry in a few years.
At the time of writing, Aurora stock is down over 3% at $3.65 on the NYSE.
Despite the string of positives, there are certain worries for Aurora. The Canadian market is currently suffering from supply chain issues, and the black market in marijuana has shown remarkable strength in the face of competition from companies like Aurora.
However, all of those factors have been priced into Aurora's stock price, and it is a fair reflection of the situation. Experts do believe that some good news could actually lead to a significant move in Aurora stock. Only time will tell, though.
Featured image: Canva
