Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point for fast-moving stocks, which can lead to investments with limited upside or potential downside [2] - Investing in bargain stocks that exhibit recent price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify promising stocks [3] Group 2: Village Farms (VFF) Analysis - Village Farms (VFF) has shown significant price momentum, with a four-week price change of 10.4%, indicating growing investor interest [4] - VFF has gained 140.6% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] - The stock has a beta of 2.31, suggesting it moves 131% higher than the market in either direction, indicating fast-paced momentum [5] - VFF holds a Momentum Score of A, suggesting it is an opportune time to invest in the stock [6] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - VFF is trading at a Price-to-Sales ratio of 0.95, indicating it is reasonably valued at 95 cents for each dollar of sales [7] Group 3: Additional Investment Opportunities - Besides VFF, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting additional investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Industry Overview - The Canadian cannabis sector is gaining investor attention as the U.S. market approaches broader reform, with the U.S. cannabis market projected to reach approximately $38.5 billion in 2024 and grow at a CAGR of 11-12% through the late 2020s [1][3] - Legislative changes in the U.S., such as Delaware's adult-use cannabis sales starting August 1, 2025, and potential federal rescheduling of marijuana, are creating strong thematic tailwinds for Canadian cannabis stocks with U.S. exposure [1][3] Company Highlights Tilray Brands (TLRY) - Tilray has established a strong global identity by combining cannabis, wellness, and beverages, significantly expanding its U.S. footprint through acquisitions [4][6] - The company reported record revenue exceeding $820 million for fiscal 2025, with gross margins averaging around 40%, showcasing strong cost management [8][9] - Tilray's strategic pivot into hemp-based beverages and wellness products allows it to build a presence in the U.S. market despite federal restrictions [10][7] Canopy Growth Corporation (CGC) - Canopy Growth is recognized as a leading cannabis company in Canada, with ambitions to enter the U.S. market through strategic partnerships and acquisitions, notably its option to acquire Acreage Holdings [10][12] - The company generated nearly $300 million in revenue but reported a net loss exceeding $650 million, highlighting ongoing profitability challenges [14][15] - Canopy's U.S. strategy is designed to unlock value upon legalization, with a strong brand portfolio and rights to Acreage Holdings representing potential growth [16] Village Farms International (VFF) - Village Farms operates in both agriculture and cannabis, leveraging its expertise in greenhouse cultivation to strengthen its cannabis operations in Canada [18][19] - The company reported net income above $25 million in 2025, with adjusted EBITDA reaching nearly 30% of total sales, demonstrating strong profitability and revenue growth [20] - Village Farms' focus on cultivation efficiency and vertical integration has allowed it to achieve profitability, distinguishing it from many cannabis peers [20][21] Conclusion - Tilray, Canopy Growth, and Village Farms each demonstrate unique strategies for growth and financial improvement in the evolving cannabis landscape [21] - These companies are well-positioned to capitalize on potential U.S. legalization and changing market dynamics, offering various investment opportunities [21]

Industry Overview - The cannabis sector has faced a prolonged slump due to the lack of federal reforms, but recent comments from President Trump regarding marijuana rescheduling have sparked renewed optimism, leading to a surge in share prices [1] - A potential federal reclassification could significantly transform the industry by easing tax burdens, improving access to banking services, and facilitating broader medical and recreational adoption, with the market expected to exceed $160 billion by 2032 [2] Company Analysis: Village Farms International (VFF) - Village Farms International holds a Zacks Rank 1 and is one of the few cannabis operators consistently generating positive EBITDA and cash flow, with Q2 earnings showing a 690% year-over-year increase in international medical export sales [4][6] - The company has divested its lower-margin fresh-produce business to focus on higher-margin cannabis operations, maintaining its position as one of Canada's top three cannabis players and contributing $2.4 million in incremental Q2 revenues from shipments to the Netherlands [5] - EPS estimates for VFF have improved significantly, with 2025 estimates rising from a loss of 9 cents to earnings of 12 cents, and the stock has increased nearly 274% year to date [6] Company Analysis: Canopy Growth (CGC) - Canopy Growth, with a Zacks Rank 2, has been streamlining operations by exiting lower-margin businesses and selling non-core assets to enhance liquidity and reduce operating expenses [7] - The company's U.S. strategy through Canopy USA provides exposure to key recreational and medical cannabis markets, and federal rescheduling could accelerate the commercialization of its U.S. assets, creating new revenue streams [8] - Loss per share estimates for CGC have narrowed from 57 cents to 50 cents for 2025, and despite a 55% decline in stock price year to date, improvements in top- and bottom-line metrics are encouraging for investors [9] Company Analysis: High Tide (HITI) - High Tide, also holding a Zacks Rank 2, is recognized as one of Canada's fastest-growing cannabis retailers, operating over 170 branded retail locations and leveraging both physical and online sales channels [10] - Loss per share estimates for HITI have improved from 5 cents to 4 cents for 2025, with 2026 EPS rising from 5 cents to 11 cents, and the stock has seen a 9% increase, driven by strong operational performance and optimism regarding federal marijuana rescheduling [11][12]

Core Insights - Canadian cannabis firms with U.S. exposure are gaining attention due to their ability to bridge both markets, which positions them advantageously as U.S. policy shifts may provide new momentum for growth [1][2][24] - The U.S. legal cannabis market is projected to grow from approximately $37 billion in 2024 to over $91 billion by 2033, indicating a strong annual growth rate of more than 10 percent [2][24] - Recent headlines regarding potential federal reclassification of marijuana have fueled optimism, leading to a rally in cannabis stocks as traders seek follow-through momentum [3][24] Company Summaries Tilray - Tilray is one of the largest cannabis companies globally, focusing on cannabis-adjacent consumer goods in the U.S., with its beverage division being a key growth driver [5][6] - The company reported annual revenue exceeding $820 million, but also a significant net loss of over $2 billion, highlighting the need for tighter cost control despite strong performance in certain divisions [9][11] - The beverage segment achieved gross margins of around 40 percent, indicating strong consumer demand and pricing power [10] Village Farms International - Village Farms operates large-scale greenhouses, supplying cannabis in both Canada and the U.S., with a focus on efficient production rather than retail [12][14] - The company emphasizes wholesale supply to licensed retailers, which reduces capital costs and lowers risk while controlling significant production volumes [12][14] - Recent financial results show steady progress, with Canadian cannabis sales increasing year over year, benefiting from rising demand and improving margins [15][16] Canopy Growth - Canopy Growth is known for its broad product portfolio, including flower, pre-rolls, edibles, and wellness products, and has a presence in the U.S. through licensing and partnerships [17][20] - The company reported strong growth in Canadian medical cannabis sales, reaching $77 million, while international sales showed slight declines [21][22] - Canopy's gross margins expanded by 300 basis points year over year, and it reduced total debt by nearly 50 percent, indicating progress in strengthening its balance sheet [21][22] Market Outlook - The U.S. cannabis market's expansion presents significant opportunities for Canadian firms with U.S. exposure, particularly as potential rescheduling of marijuana could reduce restrictions and enhance valuations [2][24] - Volatility in the sector remains high, making technical analysis and risk management essential for investors looking to participate in the growth story [4][25]

Group 1 - Alan Brochstein is a pioneer in the cannabis investment sector, having focused exclusively on this industry since 2007 [1] - He founded AB Analytical Services to provide independent consulting to registered investment advisors [1] - Brochstein is the managing partner of New Cannabis Ventures, which has been a key provider of financial information in the cannabis industry since 2015 [1] Group 2 - Alan has led the investing group 420 Investor since 2013, which focuses on publicly-traded cannabis stocks [2] - The group covers 20 stocks, providing investment news, earnings report previews, and post-report analyses [2] - Additional features of the group include a model portfolio, 10 weekly videos with chart analysis, 3 weekly summary pieces, a monthly newsletter, and a chat for questions [2]

Core Viewpoint - Village Farms (VFF) is experiencing solid improvement in earnings estimates, leading to positive short-term price momentum and a favorable earnings outlook [1][2]. Earnings Estimate Revisions - Analysts show growing optimism regarding Village Farms' earnings prospects, reflected in upward revisions of earnings estimates, which correlate strongly with stock price movements [2]. - The current-quarter earnings estimate is $0.03 per share, a significant increase of +400.0% year-over-year, with a 350% rise in the Zacks Consensus Estimate over the last 30 days due to two upward revisions [7]. - For the full year, the expected earnings are $0.12 per share, indicating a year-over-year change of +137.5%, with one upward revision and no negative revisions in the past month [8]. Zacks Rank and Performance - Village Farms has achieved a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts on the upward revisions of earnings estimates, which historically leads to outperformance [9]. - Stocks with Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [9]. - The stock has gained 101.6% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [10].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Village Farms (VFF) - Village Farms currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), which historically outperforms the market when combined with a Style Score of A or B [3] Price Performance - VFF shares have increased by 11.69% over the past week, significantly outperforming the Zacks Consumer Products - Staples industry, which rose by only 0.27% [5] - Over the past month, VFF's price change is 101.55%, compared to the industry's 0.47% [5] - In the last quarter, VFF shares rose by 145.28%, and over the past year, they increased by 157.43%, while the S&P 500 only moved 10.18% and 20.38% respectively [6] Trading Volume - The average 20-day trading volume for VFF is 2,362,476 shares, which is a useful indicator of market interest and can signal bullish or bearish trends [7] Earnings Outlook - In the past two months, one earnings estimate for VFF has increased, while none have decreased, raising the consensus estimate from -$0.09 to $0.12 [9] - For the next fiscal year, two estimates have moved upwards with no downward revisions [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, VFF is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling investment option [11]

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] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: Village Farms (VFF) Stock Analysis - Village Farms (VFF) has shown a significant price increase of 101.6% over the past four weeks, indicating strong investor interest [3] - VFF has gained 145.3% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 2.14, suggesting it moves 114% higher than the market in either direction, indicating fast-paced momentum [4] - VFF holds a Momentum Score of A, suggesting it is an opportune time to invest in the stock [5] - The stock has a Zacks Rank 1 (Strong Buy) due to upward trends in earnings estimate revisions, which attract more investors [6] - VFF is trading at a Price-to-Sales ratio of 0.97, indicating it is reasonably valued at 97 cents for each dollar of sales [6] Group 3: Additional Investment Opportunities - Besides VFF, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]

Village Farms International, Inc. (NASDAQ: VFF ) reported strong financial results last Monday. The company showed an increase in revenues and net income. Village Farms privatized its US fresh produce segment last May and Q2 performance shows the successful outcome. Analyst's Disclosure:I/we have a beneficial long position in the shares of VFF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it ( ...

Financial Data and Key Metrics Changes - Consolidated net sales increased by 12% year over year to $59.9 million, driven by growth in the Canadian cannabis segment and the first full quarter of sales from recreational cannabis in the Netherlands [20][9] - Consolidated net income from continuing operations improved to $19.9 million or $0.09 per share, compared to a net loss of $16.6 million or $0.15 per share in Q2 of the previous year [20][21] - Adjusted EBITDA from continuing operations was $17.1 million, significantly up from $2.9 million in Q2 of last year, with an adjusted EBITDA margin of 28.6% [21][9] Business Line Data and Key Metrics Changes - Canadian cannabis segment total net sales were $61.4 million, a 10% increase year over year, primarily due to strong growth in international sales [22] - Export sales to international medicinal markets surged by 690% year over year to $16.6 million, now representing about half the size of retail branded sales [23] - Canadian cannabis gross margin improved to 39%, up from 26% in Q2 of last year, reflecting successful margin improvement initiatives [23][10] Market Data and Key Metrics Changes - International exports increased almost 700% year over year and were up over 120% sequentially from the first quarter, demonstrating the effectiveness of the international growth strategy [11] - The Netherlands saw its first full quarter of sales contributing $2.5 million, with expectations for similar performance in the upcoming quarters [25] - The company reported strong demand from Germany and the UK, with continued growth expected in these markets [12][47] Company Strategy and Development Direction - The company has transformed into a significant platform for revenue growth and margin expansion in the global cannabis industry, focusing on operational capabilities and international opportunities [6][5] - A recent transaction generated $40 million in cash proceeds, strengthening the balance sheet and supporting future growth investments [6][5] - The company plans to convert the remaining 550,000 square feet of its Delta 2 greenhouse in British Columbia to cannabis cultivation, expected to add 40 metric tons of annual production capacity [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the improving performance of the business, driven by increasing demand in Canada and from international partners [16] - The company is optimistic about sustaining gross margins at the upper end of the target range of 30% to 40% for the foreseeable future [10] - Management highlighted the importance of matching supply with demand and indicated that they are not concerned about oversupply issues affecting their operations [41][42] Other Important Information - The company has passed inspections for GACP and certification against revised Israeli medical cannabis good agricultural practice requirements, enhancing its international operational integrity [13] - The company is focused on organic growth and has not pursued acquisitions to achieve its current international market position, although M&A remains a consideration for strategic opportunities [70][71] Q&A Session Summary Question: What drove the decision to expand the Delta 2 facility? - Management indicated that the low investment cost and existing asset conversion were key factors, along with the need to meet customer demand and manage supply effectively [39][40][42] Question: What were the strong drivers for international growth in Q2? - Management noted that growth was driven by strong demand in Germany and the UK, as well as onboarding new customers [43][47] Question: What are the expectations for Canadian cannabis market dynamics? - Management acknowledged that while pricing has stabilized in wholesale markets, retail pricing has not yet reflected this, indicating ongoing supply dynamics [65][66] Question: Are there any M&A opportunities being considered? - Management stated that while they are primarily focused on organic growth, M&A could be considered if it is strategic and accretive [70][71] Question: What are the implications of potential US federal rescheduling? - Management expressed optimism about the US market, indicating that they are prepared for future opportunities and that Texas would need to follow federal guidelines [75][76]