HEXO Stock Hovers Around Lows: All Eyes on Upcoming Earnings

HEXO stock

The cannabis industry has not had a great time over the past months and many stocks are trading at abysmal lows. HEXO Corp (TSX:HEXO) (NYSE:HEXO) is one of those stocks, and for some time, HEXO stock has not been particularly favored by investors.

The expectations from the market with regards to HEXO’s financial performance are weak, so it'd be wise to keep an eye on any future progress, good or bad.

The company might actually end up beating analysts’ estimates due to overall low expectations. One of the most important steps taken by the company was that of introducing a cheaper product option so that HEXO could tackle the illegal market.

Key Metrics to Watch

HEXO Corp launched the brand Original Stash, which was a cheaper version of the product and was retailed for $140 for 28 grams. The product was launched last October, and at the time of the launch, HEXO stated that the brand had the necessary market access.

HEXO proved to be the pioneer in this niche as Aurora Cannabis (TSX:ACB) (NYSE:ACB) followed suit with its own cheaper brand a few months later, together helping to create a new market altogether.

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At the time of writing, HEXO stock is down by 6% to $1.13.

Analysts believe that HEXO Corp is going to generate revenue of C$16.9 million in the fiscal second quarter. In the fiscal first quarter, the company reported revenue of C$14.5 million. Where HEXO goes from here lies in whether or not the company will be able to surpass expectations. If that happens, HEXO stock could rally.

The possibility of blockbuster performances from HEXO’s value brand Original Stash and from sales generated from cannabis 2.0 products could help the company in doing just that—but it's still too early to tell.

>> Read More HEXO News

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