HEXO Stock: These Cannabis Shares are an NYSE Top Performer

HEXO stock

Entering the fourth month of 2019, the cannabis industry is showing us what companies are potential investment plays. One to watch is HEXO Corp (NYSE:HEXO) (TSX:HEXO). HEXO stock is currently selling for $6.69 USD on the NYSE, up 1.83% at the time of writing.

Canada legalized adult-use cannabis in October 2018. Ten short weeks later, consumer spending had already topped $152 million CAD. This proved what we expected; the legal cannabis industry means big business.

So with that in mind, let’s look at HEXO stock and see why analysts are bullish.

HEXO Stock: Uplisting

Recently, HEXO stock uplisted to the NYSE American. This move is especially significant because of HEXO Corp’s size. With a market cap of $1.8 billion CAD, it is notably smaller than it’s major-exchange-listed peers.

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Uplisting to the NYSE secures legitimacy for any company and increases stock liquidity for investors. Living here, HEXO stock has as much a chance to grow as the bigger players do.

Effectively, HEXO offers investors a chance to buy-in to a thriving industry, trade on a major business exchange, and all-the-while pay only $6 USD approximately per share to do so.

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Canada’s King

Though catching the eye of American investors by swapping hands on one of the US’s biggest exchanges, HEXO stock does most of its business in Canada. One of its major deals comes from its home province of Quebec.

HEXO Corp holds a 35% market share here with a deal to supply Quebec with 200,000 kilos of dried cannabis flower over the next five years. This type of deal is one most companies can only dream of. It offers a steady and lucrative revenue stream and showcases HEXO as a legitimate producer—one worthy of province affiliation and quality assurance.

Capacity and Growth

Its most recent acquisition of Newstrike Brands (TSXV:HIP) is another healthy indicator of production measures. With this take-over, HEXO is now in line to deliver 150,000 kilograms of dried cannabis flower annually. Again, taking its size into consideration, a six-figure annual yield is impressive. Capacity is a huge indicator of long-term winners, so for $6 per share at present, HEXO stock is not to be scoffed at.

This acquisition, along with a partnership with Molson Coors (NYSE:TAP), means HEXO is in line for a sizeable chunk of the cannabis-infused edibles and beverages market. This arm of Canada’s cannabis industry is expected to be legalized later in 2019.

There are plenty of reasons to consider a cannabis company for your portfolio. Is HEXO stock one for yours?

>> Read More HEXO News

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