A $22 Billion Cannabis Beauty Product?
A cannabis small cap is poised to break out in a big way.
Another cannabis play you should know about is Aurora Cannabis (NYSE: ACB).
Here’s a quick summary…
With a 52-week high of $12.52 and a 52-week low of $4.05, Aurora Cannabis’ stock price of $5.69 offers us a very attractive entry opportunity.
Unlike most cannabis stocks, Aurora Cannabis isn’t necessarily a play on recreational marijuana. In fact, the real opportunity here lies in a chemical compound called cannabidiol (CBD).
By definition, CBD is a non-psychoactive chemical compound found in the marijuana plant that has been used in products such as mascaras and moisturizers. Some experts believe that CBD will soon become the next shea butter or aloe within the beauty industry.
For example, Brightfield Group, which specializes in cannabis and CBD market research, has called CBD the “next hot, functional beauty ingredient.” It projects the CBD industry will reach an estimated value of $22 billion by 2022.
That’s where Aurora Cannabis comes into play…
If you look at Aurora Cannabis’ growth – you’ll see this is something worth paying attention to immediately.
Aurora Cannabis’ income statement shows trailing three-month revenues of $57 million, which amounts to $0.10 in revenue per share. However, the company’s growth is what’s most appealing.
With year-over-year quarterly revenue growth of 259% and year-over-year quarterly earnings growth at an eye-popping 2,862%, this is a stock to add to your speculative watch list right now.
Plus, with total cash of $371 million versus total debt of $218 million, Aurora Cannabis’ $0.38 in cash per share makes it even more attractive.
As attitudes continue to change about marijuana use, a similar change could make its way to the beauty sector. As scientists discover that CBD oil has many uses apart from medical purposes, Aurora Cannabis could be in the perfect position to fully capitalize on this rapidly growing market sector.