Aurora Cannabis (NYSE: ACB) Going Strong – What’s Ahead for the Stock?

They say the one who sees things in the seed is a pure genius. When the legalization of marijuana started gathering some momentum back in the 90s, many investors saw the seed of opportunity in the cannabis plant. However, it’s only those that invested in the quality pot stocks have made a fortune.

But is it too late to benefit from the cannabis boom? Literally, it seems like the race has only just begun, but only if the right investments are chosen and focus is placed on the fundamentals.

The Canada-based grower’s stock Aurora Cannabis (NYSE: ACB) is poised for growth in 2019 and hence a stock to watch for most investors.

Aurora Cannabis Price Analysis

Headquartered in Edmonton, Canada, the company produces as well as distributes a wide variety of medical cannabis products. Aurora Cannabis is scheduled to report its third-quarter earnings shortly with expectations of a 3% loss on revenue of $55.1 million.

Currently, the stock’s price is at $11.38 having seen some decrease in the last few days. The price is steadily increasing as the shares shot up today by 5.6% bouncing off a 2-month low.

Just recently, Aurora Cannabis Inc. fell by 3.95% from $8.35 to $8.02. However, it has hence picked up and risen with signs of an upward trend in the cards. Already, the company has broken broad as well as a strong rising short-term trend; hence as much as the rising trend may seem slow, it will surely get up.

Aurora Cannabis overview

Aurora is one of the leading cannabis companies in the world with a funded capacity of 625,000 kg marijuana annually and sales alongside the operations in more than 24 countries across 5 continents.

The company has an advanced consistent as well as efficient production strategy with its facilities built to meet the EU GMP standards.

It has been a hot pot stock especially this year and still has got a lot more room of reaching even higher.

Aurora’s Developments

Acquisitions play a significant role within the corporate ecosystem as they are the tools of expanding the revenue, competitive moats, profitability, and the geographical reach. In fact, shareholders are always eager of what the company will acquire next.

Aurora has not been left behind in wrapping up some acquisitions as well as they push forward. There were a series of acquisitions in 2017 and 2018, and this year started with acquiring Whistler Medical Marijuana in a deal worth $132 million.

The main reason for the acquisitions is to bridge the gap for more marijuana, and adding capacity is the best way.

Moreover, the company had taken over CanniMed Therapeutics – a leader in the Canadian medical marijuana industry. Further, it acquired the South American market leader, ICC Labs for $290 million which has proven to give Aurora a strong footprint in South America as well as a first mover advantage.

All the acquisitions are meant to make Aurora even better, and thus far they have proved to be supportive in the company’s journey.

What Raises Optimism?

Aurora announced its two facilities being fully licensed by the Canadian Health authority for production as well as the sale of marijuana. The two facilities: Aurora Sky and MedReleaf Bradford raised the stock’s price at the time.

So, it means that the stock has got great potential of moving up whenever an opportunity comes across. That is an aspect that keeps investors optimistic that Aurora stock is well on track to keep rising.

The Future Looks Bright for Aurora

Apart from benefiting from the location, Aurora looks to tie down a partnership with major beverage companies such as Coca-Cola so as to introduce cannabis-infused drinks.

Furthermore, the company has massively expanded its facilities to meet the high demand and has bought other firms. Notably, it acquired the Mexico-based medical marijuana partner, Farmacias Magistrales hence offering Aurora entry into the Mexican market.

Consequently, as much as Aurora has got its caveats, the stock looks bullish and with third-quarter earnings underway, the pot stock looks much attractive for the long-run.

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Disclosure: We have no position in ACB and have not been compensated for this article.

Photo by Sagui Andrea from Pexels