Aurora stock has surged more than 80% this year, making it one of the most promising marijuana stocks currently. Aurora Cannabis (TSX:ACB) (NYSE:ACB) has seen tremendous revenue growth following the legalization of adult-use recreational marijuana in the Canadian market.
Quarterly Results Boost
In the fourth quarter 2018, which was the first full quarter since the legalization of adult use recreational marijuana in Canada, the company reported $54 million CAD in revenue, $21.6 million CAD of which was from recreational marijuana sales. The sales are expected to continue growing this year once the regulations for cannabis beverages and edibles are finalized.
Based on the Q4 results, Aurora stock is currently ranked second in the adult-use recreational marijuana market sales. It is expected that the company will maintain a healthy position going forward because of its production capacity in terms of kilograms produced. Currently, the company has a production capacity of 120,000 kg per year, and by mid next year, it expects to reach 625,000 kg.
Aurora Cannabis is also expanding its reach in international markets, putting it in a better position than many marijuana producers. The company currently has operations in around 24 countries across five continents. Recently Aurora completed a milestone by cementing its position in the German medical marijuana market after it became one of the three companies approved to grow medical cannabis in the country.
Aurora projects the annual marijuana market in Canada to be up to $9 billion for medical cannabis and adult-use recreational marijuana sales. The global market beyond Canada could reach $50 billion. These projections do not include CBD products produced from hemp and marijuana, especially now that Aurora is a major player in the hemp market following the acquisition of HempCo.
In terms of market capitalization, Aurora is still behind Canopy Growth Corp (TSX:WEED) (NYSE:CGC), but even still, Aurora stock is considered one of the promising marijuana stocks thanks to its global expansion and greater production capacity.
Last week, Bank of America Merrill Lynch’s Christopher Carey initiated coverage on Aurora stock with a Buy rating.
Featured image: Canva