HEXO stock looks impressive on the marijuana index today. Up 10% at the time of writing, Quebec's leading cannabis company—previously named the Hydropothecary Corporation—is starting 2019 with a bang!
It seems Wall Street could be the reason for the impressive price jump. Estimations have emerged that predict HEXO Corp (TSX:HEXO) will top 2009% year-over-year sales growth.
The company has been listed as one of the biggest cannabis gainers for 2019.
HEXO Stock
HEXO stock is clearly profiting today from the estimations. But what has this company got that will see it actually deliver such impressive growth in 2019? Let's check out HEXO.
Massive Output Growth
The first tool in its arsenal is a 1-million-square-foot expansion located right next door to its existing facility in Gatineau. The company reached a licensing and construction milestone in December 2018 and is now ready to move its plants in. The reality of this new facility means an annual output of 108,000 kilograms of cannabis. Such output will place HEXO Corp in the cannabis producer top-ten.
Supply Deal
The company is sitting on a lucrative five-year supply deal with Quebec's cannabis regulatory body. This deal requires the company to provide 200,000 kilograms and ensures a consistent and steady revenue for the company. It also places HEXO Corp as the provinces 'go-to' cannabis producer giving increased credibility to the brand and offers users assurance of quality product. HEXO stock should increase from this province partnership.
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Also, the company's commitments to Quebec continually increase, so the potential for more and more revenue here is strong.
Cannabis Beers
Possibly one of the most exciting ventures of HEXO's is its partnership with Molson Coors Brewing Co (NYSE:TAP). Firstly, if you are going to partner with an alcohol company, you couldn't pick a better partner than Molson. The company comes with deep pockets, vast marketing experience, and a huge loyal following. Its experience and hefty consumer base with HEXO's trusted quality product is a match made in heaven for this arm of the cannabis industry.
Cannabis beverages are set to explode in 2019 once consumables are made legal later in the year. With that, HEXO stock may also explode.
So this is why Wall Street is pegging HEXO as one to watch in 2019. As stated, it has a predicted sales growth of 2009%. The company has all the pieces in place, so HEXO stock should be on your radar if it isn't already.
What do you think?
Featured Image: Depositphotos/Omstudio
