If you think marijuana has lost its hippy image, look who’s doing business with Canopy Growth. The Canadian WEED company is producing recreational marijuana products for comedian Seth Rogen’s Houseplant and Snoop Dogg’s Leafs. This cannabis company is not sitting back and inhaling the high rec revenues. Canopy Growth is turning itself into a mainstream drug and consumer product company.
This guide looks at how to assess Canopy Growth’s future growth opportunities, value Canopy Growth stock, and find the best Canopy Growth stock brokers as the high flying stock invests in long-term growth in diversified medical, recreational and consumer cannabis markets.
Should you invest in Canopy Growth?
You may decide to invest in Canopy Growth (TSX: WEED, NYSE: CGC) for its large share of the recreational drug market. The WEED stock price has been growing like wild grass with a 180 percent return over three years. But the recreational cannabis market is not the best or biggest reason to buy cannabis stocks. Canopy Growth is expanding into cannabis therapies, edibles, beverages and hemp consumer products with even larger market potential.
Pros of buying Canopy Growth stock
WEED is spreading across five continents
After major investments in new production and processing capacity, Canopy will be shipping medical cannabis product throughout Europe, Latin America and other regions this year. In recreational cannabis, new customers include the Alberta Gaming, Liquor & Cannabis Commission and comedian Grogen’s Houseplant.
Breakthroughs in cannabis medical uses
Canopy Growth is conducting clinical trials to develop new cannabinoid therapies. Among the promising therapies, a drug to treat the millions of sports concussions each year is in testing with former NHL players. Another way to invest in medical cannabis research is to buy Aurora stock – another homegrown Canadian cannabis producer.
Hemp living with Martha Stewart
Canopy has announced a $100–150 million investment in a Hemp Industrial Park in New York State, where it will produce hemp. As an adviser to Canopy, Martha Stewart will provide input on end products for animals and people.
Big consumer brand backing
Constellation Brands has taken a 38 percent stake in Canopy. With the backing of the maker of Corona beer, Canopy will enter new cannabis-infused beverages and edibles markets.
Cons of buying Canopy Growth stock
Rising research costs
Canopy Growth’s expenses are rising as it invests in new medical cannabis research and production. Research and development costs jumped to 6 percent of revenue in the final quarter of 2018, versus one percent a year earlier.
An expensive recreational market ramp up
CGC has made large investments in expanding production and retail outlets to seize the market opportunity when recreation markets became legal in October 2018. Over the year, gross margins have tumbled from 55 to 22 percent.
Competition in the recreational market is pushing prices down. Even Seth Rogen’s Houseplant is targeting the hot Canadian market. Canopy will be able to charge higher prices for high quality strains. In the medical cannabis market, CGC sells into Germany and other markets with premium pricing.
With Canadian sales now in full swing, cannabis stocks selling marijuana products for recreational use should benefit from the high demand.
Canopy Growth Stock: Current Prices and Summary
Investors seeking to buy cannabis stocks in the early days of global cannabis deregulation are betting on large upside. Even so, is a price-to-sales ratio of 92 for CGC stock fair? Put another way, should CGC be valued as a recreational or medical marijuana company? The legal marijuana industry is trading at an astronomical P/S ratio of 465 (CSIMarket), whereas pharmaceutical companies have a P/S ratio under 30.
Following Canada’s legalization of marijuana and a surge in revenues, CGC stock has increased 57 percent in 2019. Though CGC generates 71 percent of revenues from recreational cannabis and 20 percent from medical cannabis, the strong headwinds for legalized medical cannabis and substantially larger market size worldwide are ready to propel medical market revenues higher. Analysts expect earnings growth to steadily improve with profitability in sight in the 2020–2021 window. Canopy Growth Cannabis Inc. is listed on the Toronto Stock Exchange as WEED and New York Stock Exchange as CGC.
Your capital is at risk.
CGC price quote
|Price||$ 170.93||Daily high||$ 171.44|
|+ / -%||00:30%||Day before||$ 170.42|
Best Canopy Growth Stock Brokers
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|Spreads||• Spreads from 2 pips • Flat fee on withdrawal||•Fees are built into spread. • Spread cost : 0.35 • Unregulated broker||• Spreads from 2 pips||•Fees are built into spread. • Spread cost : 2 pips|
|Number of stocks available||4,000||2,500||1,500||N/A|
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How to Buy Canopy Growth Stock – Tutorial
How to buy Canopy Growth stock on eToro
eToro has established itself as a reputable and trusted broker among traders since it launched in 2007. The leading online broker for social trading is regulated in several jurisdictions, including by the UK’s Financial Conduct Authority (FCA). Popular features include social feeds, research and One Click Trading. If you are deciding whether to buy Canopy Growth shares on eToro, review these pros and cons.
- Fast account opening process
- CopyTrader™ platform
- CopyPortfolios™ across an investment theme
- One-click trade execution
- Low fees
- Low minimum deposit (200 euros)
- Range of payment methods
- User-friendly interface
- Full BCH trading
- Withdrawals can be slow
- Mostly CFDs
Start trading Canopy Growth stock on eToro?
Step 1: Register your account
First, start by opening your eToro account here. Fill out your basic profile information. To determine your investor risk profile, you will be asked to answer a few short questions about your investment experience, knowledge and style, as well as your risk-return tolerance.
Step 2: Verify your identity
Attach and submit proof of identity for verification. US-based accounts are not accepted.
Step 3: Fund your account
eToro provides a wide variety of payment methods. Check to see if your preferred method is available in your country.
Step 4: Trade Canopy Growth stock
On eToro, you can invest in Canopy Growth through traditional securities trading and social investing. To help you find the best investments for your portfolio, eToro assigns the portfolio of every trader a risk score based on the volatility – average daily price movement – of the instruments invested in on a scale of 1–6, 6 representing the highest risk. Here are three ways to invest in Canopy Growth stock on the leading social trading platform.
Step 4A: Place a Canopy Growth stock trade
We have chosen to invest in the Horizon Medical Marijuana ETF (HMMJ), which provides diversified exposure to medical cannabis stocks. Canopy Growth (CGC) stock is a top holding. Click on Trade. Select Market (current price) or other price level you want to enter the market at. Enter the amount you want to trade and leverage (X1, X2, X5). Your Stop Loss and Take Profit levels are preset by you. You can also set up a One Click Trade option and preset the above parameters. (The stock profile page provides social feeds, stats, charts and research. Social feeds often provide helpful technical analysis tips and updates on how a stock is trading relative to various benchmarks.)
Step 4B: Place a CopyTrader™ trade
Choose from the selection of copy traders by reviewing their risk score, trading performance stats, charts, and portfolio. Also check out the traders on the Editor’s Choice List. Copying a portfolio that holds Canopy Growth is a way to buy Canopy Growth stock while diversifying risk. Click Copy. From the copy trade box, choose the amount you want to trade and the copy trade stop limit. Press Copy.
Step 4C: Place a CopyPortfolios™ trade
Choose a portfolio among dozens of investment themes. CopyPortfolios™ copies multiple portfolios and traders following that theme. We chose the CannabisCare portfolio, which consists of medical cannabis stocks that trade as biotechnology stocks.
Review the risk profile and portfolio performance. Click on Invest. From the Invest box, choose the amount you want to invest and the stop investing limit. That’s it! To open your eToro click here.
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
How to buy Canopy Growth Stock on Markets.com
The official online broker of the Arsenal Football Club provides all the basic tools and education a retail trader requires. markets.com is owned by Playtech, a public company listed on the London Stock Exchange. Like its PlaytechOne one wallet – the one account solution for playing on casino, poker, sports and other gaming sites – markets.com seeks to provide quick and easy access to a good range of investment products. If you are deciding whether to buy Canopy Growth shares on markets.com, review these pros and cons.
- Day traders
- Demo account
- Low commissions
- Good quality news flow
- Good set of analytical tools
- Limited order types
- Not many deposit options
- Customer service not very effective
- Unregulated broker
Start trading Canopy Growth stock on Markets.com
Step 1: Register your account
You will be prompted to download the markets.com mobile app to register. After filling in basic profile information, a brief questionnaire on investment experience and knowledge, as well as income and assets, will determine your trading level and leverage. 1:30 is the leverage for the average retail investor. So with a $500 deposit, you can trade up to $15,000.
Step 2: Fund your account
If depositing by credit card, you will need to first have it verified. Click on Verify Credit Card on the My Account Page.
Step 3: Verify your identity
Attach and submit proof of identity and a utility bill for verification. Residents of the USA, Canada, Australia, Hong Kong, Japan and some other countries are restricted.
Step 4: Trade Canopy Growth stock
On Markets.com, you can choose to invest in Canopy Growth stock, or a wide range of ETFs and indexes. Other securities include forex, cryptocurrencies (a handful of majors), bonds, blends, and grey markets in Uber and Lyft ahead of their IPOs. Trending Now displays a list of top moving stocks.
The Canopy Growth stock profile provides basic stock price charting information and a market sentiment indicator. Place the trade by choosing the Buy or Sell button.
How to buy/sell CFDs on Canopy Growth Stock on Plus500
Novice retail traders may find this platform lacks the trading interface, research tools and education they depend on for general guidance. The experienced trader with their own tools, stock data and news will be at home with the simple, intuitive interface and over 100 technical indicators. Traders who qualify for a professional account (with a minimum portfolio value of €500k) can raise their leverage levels, for example, from 1:5 to 1:20 for stock trades. If you are deciding whether to buy/sell CFDs on Canopy Growth shares on Plus500, review these pros and cons.
- FCA regulated
- Listed on the LSE
- Easy to use platform
- Great mobile platform
- High order volume
- Experienced traders only (no fundamental data)
- Only CFD trading
- High financing rates
- No scalping allowed
Start trading CFDs on Canopy Growth stocks on Plus500
Step 1: Register your account
You will be prompted to download the Plus500.com mobile app to register. Select between a Demo and Real Money account. After filling in basic personal information, you will gain access to the unlimited demo account. Before you can use it, you will be prompted to answer a few questions to establish your investor risk profile.
Step 2: Fund your account
When you are ready to trade with real money, fund your account. Three payment options are provided. You may be asked to verify your payment method.
Step 3: Verify your identity
Attach and submit proof of identity for verification.
Step 4: Trade CFDs on Canopy Growth stocks
Plus500 offers a wide variety of CFDs on investment instruments, including stocks, ETFs, indexes, forex and cryptocurrencies. For the advanced investor, options trading is also available on many stocks. Query Canopy Growth and the price quotes for the stock appear on the screen.
All stock information and the Buy/Sell commands are displayed on the general stock page for the serious trader who wants to execute quickly. The bottom half of the page displays the price chart and provides access to a broad selection of technical analysis indicators.
80.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the risk of losing money.
A Brief Overview of the History of Canopy Growth
Canopy Growth is the story of a medical marijuana company that turned into a recreational cannabis company overnight. Computer software engineer and entrepreneur Chuck Rifici – then CFO of the Liberal Party of Canada – and Bruce Linton formed Tweed Marijuana in 2013 when the federal government started providing licenses to commercial growers of medical marijuana. In 2014, Tweed became the first publicly traded cannabis company when it listed as WEED on the Toronto Stock Exchange. In 2018, the newly named Canopy Growth Corporation (NYSE: CGC) became the first cannabis company listed on the NYSE.
In the first few months of Canadian recreational cannabis sales, Canopy net revenues jumped 282 percent to $83 million in the last three months of 2018 over the year-ago period. In addition to online store sales, Canopy’s retail store traffic has spiked. By the end of 2018, about 70 percent of sales came from retail sales in the newly legalized Canadian market. Medical cannabis remains a key market. In the medical markets, joint ventures and acquisitions – with Spectrum in Europe and Latin America, and Vert Medical and Mettrum in Canada, for instance – have established six licensed facilities which began high volume production in 2019. In consumer products, Constellation Brands increased its stake in CGC from 10 to 38 percent by investing an additional $3.8 billion. Constellation-Canopy plan to expand into edible products, beverages and sleep aids.
Canopy Growth Shares: Forecast 2019–2023
The trend of big consumer brands like Constellation partnering with cannabis companies creates an opportunity to buy cannabis stocks as the cannabis business mainstreams. Canopy Growth expects its developing global medical distribution networks to open the doors to other products. CGC currently has 665,000 square feet of significantly underutilized licensed production capacity gearing up to meet growing demand in medical, recreational and consumer cannabis markets.
2019 – Production ramp up
In 2019, as these under utilized assets become high performing assets gross margins will begin expanding. R&D will continue to be a rising expense, though, as the medical brands develop new cannabis therapies. Medical products will fetch higher average selling prices. The median analyst Canopy Growth stock price forecast is 53, with a low of 24 and high of 76.
2020 – Edible consumer products
The spirits company behind Corona beer, Mondavi wine and SVEDKA vodka is adding cannabis-infused drinks to its lineup. With its large stake in Canopy Growth, Constellation Brands will be pushing product to market as early as 2020. The market for food, beverages, beauty and vapor cannabis products is estimated to reach ~$1-2.5 bn by 2025 by Cowen analysts. Edible drinks will further improve margins. Another way to play cannabis-infused edibles and beverages is to invest in Aurora stock. Although Aurora has flirted with Coca-Cola, it does not yet have a big brand tie up. Low-to-median growth is forecasted for Canopy Growth stock.
2021 – Hemp living products
In addition to edibles, Canopy Growth is an early mover in hemp products. The New York state industrial hemp facility is underway and, with the input of Martha Stewart, products are under development. Hemp is developing a green caché as specialty apparel brands push it and environmentally conscious investors invest in hemp stocks. Canopy Health Innovations will help produce personal care and other health products for this market. Median-to-high growth is forecasted for Canopy Growth stock.
2022 – Profits in the green
By 2022, Canopy revenues will be more evenly distributed across recreational cannabis and the higher margin medical and consumer markets. The company is ready to turn the corner to profitability. Median-to-high growth is forecasted for Canopy Growth stock.
2023 – A diversified story
The reduction in cannabis production startup expenses and introduction of higher margin products such as soft gels, vape pens, edibles and consumer hemp will turn Canopy into a profitable company. Canopy expects margins to rise to the mid-50 percent. Median-to-high growth is forecasted for Canopy Growth stock.
As more medical and recreational cannabis markets go legit, Canopy Growth is ready to ship product to market as the green wave opens up more markets. A decline in price could be an opportune time to buy Canopy Growth shares.
When you are ready to buy stocks, we recommend doing so via a regulated online broker such as eToro if you’re a UK customer, and Ally Invest for U.S. customers.
Trade Canopy Growth Stocks With Autotrading Robots
If you are ready to trade Canopy Growth stock, an autotrading robot can help you improve your investing performance. Trading CGC with autotrading robots is a way to execute trades faster and more efficiently. Trading bots monitor the price action for you and automatically buy and sell stocks based on your preset trade setup and technical indicators. Whether you are new or experienced at trading cannabis stocks, an autotrader can help you become a more profitable trader.
Weed Millionaire is a bot that trades CFDs on marijuana stocks. InsideBitcoins has tested Weed Millionaire and has found that the trading robot has an impressive success rate of 90%. This clever bot can be making money for you while you sleep. It operates on semi-automated or fully-automated CFD Cannabis trading mode. Setting up Weed Millionaire is easy. Enter your trading parameters, such as your take profit and stop loss levels, activate trading and it’s ready to trade for you. Advanced strategies such as arbitrage can be executed with speed not possible by manual trading. Weed Millionaire identifies price discrepancies and enters trades autonomously to profit from them. Set up a Weed Millionaire Demo account in three easy steps and start entering profitable trades in the high growth marijuana stock market.
When did Canopy Growth go public?
Canopy Growth listed on the Toronto Stock Exchange in 2014 where it trades as WEED. Canopy Growth went public on the New York Stock Exchange in May 2018 under the symbol CGC.
Does Canopy Growth pay a dividend?
No, Canopy Growth shares do not pay dividends. Instead of paying dividends, high growth companies return value to shareholders in the form of increases in stock value and acquisitions to sustain growth. Over the last 12 months, CGC shares have returned 70 percent to shareholders whereas the S&P 500 with dividends reinvested returned 4.2 percent.
Can I buy Canopy Growth stock directly from Canopy Growth?
A direct stock purchase plan (DSPP) was not found for Canopy Growth.
How do I invest in over-the-counter (OTC) marijuana stocks?
Companies that are too small to meet the stricter listing requirements of a large exchange can list in the OTC market. Register with a broker offering access to OTC stocks. Place a trade with your broker, specifying limits and stops as usual. The price of your stock can be monitored through the Over-the-Counter Bulletin Board (OTCBB). You may also buy penny stocks on the OTC market – marijuana stocks trading for less than $5 per share.
Where and how can I buy Canopy Growth stock?
You can buy Canopy Growth stock from online stockbrokers. eToro and Plus500 are examples of online broker platforms where traders buy and sell Canopy Growth stock. After signing up online, type in the CGC ticker, place your order and you will become an owner of Canopy Growth shares.