Forget Sundial, Buy These 4 Top Cannabis Stocks Instead By StockNews

While the cannabis industry’s steps toward legalization have been progressing of late, and the industry has been benefiting from the growing therapeutic and recreational use of marijuana, the entry of several new companies to the market is making the space highly competitive. We think Sundial Growers (NASDAQ:) lacks the fundamental strength to survive the competition and attract investors’ attention. Conversely, it could be worth betting on OrganiGram (OGI), Village Farms (VFF), Akerna (NASDAQ:), and Greenlane (GNLN), which we believe possess much higher upside potential than SNDL. So, let’s examine these names. Read on.Solid progress on the legalization front, increasing demand for therapeutic cannabis from an aging population, and changes in consumer preferences toward innovative recreational cannabis products have been driving the cannabis industry’s growth. The global market for legal marijuana is expected to reach $100 billion by 2027, registering a 19% CAGR. Also, the U.S. cannabis market is projected to reach $115 billion by 2030.

Although the shares of Calgary, Canada, cannabis producer Sundial Growers Inc . (SNDL) are up 38.8% in price year-to-date, the company’s unstable financials and bleak growth prospects could mean the stock may attract only limited investor attention in the near term. For its last reported quarter, SNDL’s gross revenue decreased 47.7% year-over-year to CAD12.74 million ($10.28 million), and its net loss amounted to CAD52.3 million ($42.18 million). Also, analysts expect its revenue to decline 9.9% from its year-ago value in the current year. The stock has declined 45.7% in price over the past nine months.

Therefore, we think fundamentally sound cannabis stocks OrganiGram Holdings Inc. (NASDAQ:), Village Farms International, Inc. (NASDAQ:), Akerna Corp. (KERN), and Greenlane Holdings, Inc. (NASDAQ:), which have much higher upside potential compared to SNDL, could be better bets now.

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