Key Takeaways SNDL stock trades 70% below its average Zacks price target at around $2.40 a share.The cheap, soaring marijuana stock offers big upside, boosted by possible rescheduling. Wall Street is growing increasingly confident that the Fed will cut rates at its September meeting. Additionally, Nvidia and, most recently, Oracle have confirmed that the artificial intelligence spending boom remains in full force.Despite the possibility of some near-term profit taking, the last several months and the past f ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - Identifying the right entry point for fast-moving stocks is challenging, and investors may end up with expensive shares that have limited upside [1] Group 2: Bargain Stocks with Momentum - Investing in bargain stocks that have recently shown price momentum may be a safer strategy [2] - The Zacks Momentum Style Score is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 3: SNDL Inc. Analysis - SNDL Inc. has shown a price increase of 38.1% over the past four weeks, indicating growing investor interest [3] - The stock gained 70% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - SNDL has a beta of 3.57, indicating it moves 257% higher than the market in either direction [4] - The stock has a Momentum Score of B, suggesting it is a favorable time to invest [5] - SNDL has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investors [6] - The stock is trading at a Price-to-Sales ratio of 0.86, indicating it is reasonably valued at 86 cents for each dollar of sales [6] Group 4: Additional Investment Opportunities - Besides SNDL, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, which can help identify winning stock picks [8]

Group 1 - The U.S. industrial hemp sector showed strong performance on Monday, with notable gains in several companies [1] - Tilray (TLRY.US) increased by over 8.9%, OrganiGram Holdings (OGI.US) rose by more than 6%, and Sundial Growers (SNDL.US) climbed nearly 4% [1] - Aurora Cannabis (ACB.US) saw an increase of over 2.6%, while Canopy Growth (CGC.US) surged by more than 6.5% [1]

Momentum investors typically don't time the market or "buy low and sell high." In other words, they avoid betting on cheap stocks and waiting long for them to recover. Instead, they believe that "buying high and selling higher" is the way to make far more money in lesser time. Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth potential fails to justify their swelled-up valuation. In that phas ...

Core Points - SNDL Inc. announced that all resolutions put to shareholders at the Annual and Special Meeting were passed [1] Group 1: Shareholder Meeting Resolutions - Shareholders approved fixing the number of directors at seven [2] - The following individuals were elected as directors: Gregory Mills, J. Carlo Cannell, Lori Ell, Zachary George, Frank Krasovec, Bryan Pinney, and Gregory Turnbull [2] - CBIZ Inc. was re-appointed as the auditors for the ensuing year, with the board authorized to set their remuneration [2] - Approval was granted for the Company's Stock Option Plan and Restricted and Performance Share Unit Plan, including unallocated awards [2] Group 2: Voting Results - The vote for fixing the number of directors received 81,437,840 votes for (90.08%) and 8,966,964 votes against (9.92%) [3] - Individual director nominees received the following votes: - Gregory Mills: 37,627,605 votes for (90.43%) - J. Carlo Cannell: 37,674,260 votes for (90.55%) - Lori Ell: 37,669,902 votes for (90.54%) - Zachary George: 37,596,461 votes for (90.36%) - Frank Krasovec: 37,291,964 votes for (89.63%) - Bryan Pinney: 37,589,021 votes for (90.34%) - Gregory Turnbull: 37,132,554 votes for (89.24%) [3] - The re-appointment of CBIZ Inc. as auditors received 81,759,588 votes for (90.44%) and 8,645,217 votes withheld (9.56%) [4] - Approval for the Stock Option Plan and Restricted and Performance Share Unit Plan received 34,749,681 votes for (83.52%) and 6,857,761 votes against (16.48%) [4] Group 3: Company Overview - SNDL Inc. is one of the largest vertically integrated cannabis companies in Canada and the largest private-sector liquor and cannabis retailer [4] - The company operates retail banners including Ace Liquor, Wine and Beyond, Liquor Depot, Value Buds, Spiritleaf, and Superette [4] - SNDL's consumer-facing cannabis brands include Top Leaf, Contraband, Palmetto, Bon Jak, La Plogue, Versus, Value Buds, Grasslands, Vacay, Pearls by Grön, No Future, and Bhang Chocolate [4] - The investment portfolio aims to deploy strategic capital through direct and indirect investments and partnerships in the North American cannabis industry [4]

Financial Data and Key Metrics Changes - SNDL reported net revenue of $245 million for Q2 2025, reflecting a 7.3% increase year over year [8] - Gross profit reached $67.6 million, a 16.2% growth year over year, matching the record gross margin of 27.6% achieved in Q1 2025 [9] - Adjusted operating income was $5.8 million, marking a 226% increase year over year, with the first positive operating income in the company's history [10] Business Segment Data and Key Metrics Changes - The cannabis retail segment achieved net revenue of $84.4 million, representing 11% year over year growth, driven by an 8.2% increase in same store sales [16] - The liquor retail segment delivered net revenue of $141.9 million, marking a 1% year over year increase, supported by a 2.7% growth in same store sales [14] - Cannabis operations segment reported net revenue of $35.8 million, reflecting a 43% growth compared to the prior year, driven by edibles and international sales [17] Market Data and Key Metrics Changes - The cannabis business expanded at nearly three times the rate of the Canadian recreational market, outperforming direct competitors [4] - International sales for cannabis amounted to $3.8 million in Q2 2025, indicating growth in export revenues [48] Company Strategy and Development Direction - The company focuses on three strategic pillars: growth, profitability, and people, with a commitment to expanding its cannabis retail footprint in Canada [19][20] - SNDL is actively monitoring the U.S. market while expanding its international presence, serving patients in the UK and Continental Europe [6] - The company aims to achieve sustainable long-term value for shareholders through operational improvements and cost management [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth and operational efficiency, despite challenges in the broader market [5][21] - The company is optimistic about international sales growth, although it will be off a slow base [29] - Management highlighted the importance of maintaining a strong balance sheet with no debt and over $200 million in unrestricted cash [6] Other Important Information - The company achieved a $5 million reduction in overhead expenses year over year, despite inflationary pressures [22] - The Rise Rewards loyalty program is in early stages, with a six-figure membership count [30] Q&A Session Summary Question: International sales growth and domestic sales prioritization - Management indicated that international sales growth does not detract from focus on the Canadian market and expects meaningful growth in the second half of the year [29] Question: Update on the Rise Rewards loyalty program - Management confirmed progress in member sign-ups, with announcements planned as key milestones are reached [30] Question: Potential expansion of cultivation footprint - Management noted that current cultivation efforts meet about 15% of total biomass needs and are cautious about capital investments in new facilities [32] Question: Satisfaction with current supply chain and margins - Management acknowledged early days in Europe with high margins but noted volatility and external shocks affecting supply chains [38] Question: Commentary on liquor segment growth - Management attributed liquor segment growth to effective banner management and consumer engagement, particularly in the Wine and Beyond banner [44] Question: Clarification on wholesale revenue for cannabis - Management disclosed that international sales for cannabis amounted to $3.8 million in Q2 2025 [48] Question: Aspirations for market share in Canadian recreational sales - Management expressed a focus on profitable growth rather than solely increasing market share, acknowledging the oligopolistic nature of the market [51] Question: Update on U.S. assets and consolidation - Management indicated that consolidation of U.S. assets is pending the resolution of ongoing legal processes [53] Question: Management's role in Parallel operations - Management clarified that SNDL is not engaged in plant-touching activities in the U.S. to maintain compliance with NASDAQ [57]

Industry Overview - Canadian cannabis stocks are gaining momentum as the U.S. cannabis market is projected to reach nearly $45 billion by 2025, with legal sales expanding in over 20 states [1] - Renewed interest in federal reform is evident, with lawmakers pushing for rescheduling and broader legalization, despite local regulatory challenges [1] - Canadian firms with U.S. exposure are expected to benefit from these developments, leading to increased investor optimism [1] Company Highlights - **Sundial Growers Inc. (SNDL)** has transformed into a diversified cannabis and liquor operator, expanding its retail presence in the Southeastern U.S. and managing dozens of dispensaries [5][8] - For Q1 2025, Sundial reported net revenue exceeding $200 million, with significant gross profit growth and improved operational efficiency, despite still reporting an operating loss [8] - **Cronos Group Inc. (CRON)** has adopted a partnership strategy to gain U.S. exposure, allowing it to distribute branded products without direct ownership of retail stores [9] - In Q1 2025, Cronos saw a meaningful revenue increase, with gross profit more than doubling year-over-year and adjusted earnings turning positive for the first time in several quarters [11] - **High Tide Inc. (HITI)** operates the largest non-franchised cannabis retail chain in Canada and has a strong e-commerce presence in the U.S. [12] - The company reported over 10% revenue growth in Q2 2025, maintaining positive adjusted EBITDA for 21 consecutive quarters and expanding its store count to over 200 [14] Investment Outlook - August 2025 brings renewed interest in the cannabis sector, with Sundial, Cronos, and High Tide showing distinct strengths and operational momentum [15] - Each company demonstrates resilience and strategic growth, making them worthy of consideration for investors looking to tap into North America's cannabis potential [16]

Financial Performance - SNDL achieved its first profitable quarter with approximately $6 million in Adjusted Operating Income [17] - Net revenue increased by 73% year-over-year to $245 million [14] - Gross profit increased by 162% year-over-year to $676 million [14] - Adjusted Operating Income increased by 2263% year-over-year to $58 million [14] - Free Cash Flow decreased by 407% year-over-year to negative $79 million, driven by growth investments [14, 15] Segment Performance - Liquor Retail net revenue increased by 10% year-over-year to $1419 million [34] - Cannabis Retail net revenue increased by 11% year-over-year to $844 million [37] - Cannabis Operations net revenue increased by 43% year-over-year to $358 million [43] Strategic Highlights - Cannabis Retail same-store sales grew by 82% [51] - Liquor Retail same-store sales grew by 27% [51] - Cannabis Operations revenue growth was driven by the Indiva acquisition and international sales [52]

SNDL Inc. (SNDL) came out with quarterly earnings of $0.01 per share, beating the Zacks Consensus Estimate of a loss of $0.04 per share. This compares to a loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +125.00%. A quarter ago, it was expected that this company would post a loss of $0.06 per share when it actually produced a loss of $0.04, delivering a surprise of +33.33%. Over the last four quarters, the compa ...

The Company Delivers Positive Operating Income EDMONTON, AB, July 31, 2025 /PRNewswire/ - SNDL Inc. (NASDAQ: SNDL) (CSE: SNDL) ("SNDL" or the "Company") reported its financial and operational results for the second quarter ended June 30, 2025. All financial information in this press release is reported in millions of Canadian dollars unless otherwise indicated. SNDL has also posted a supplemental investor presentation on its website, found at https://sndl.com. The Company will hold a conference call and web ...