Marijuana rescheduling

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Bull Of The Day: High Tide
ZACKS· 2025-08-26 12:11
Core Viewpoint - High Tide (HITI) is positioned as a strong investment opportunity in the cannabis sector, with positive growth projections and a favorable Zacks Rank of 2 (Buy) [1] Company Overview - High Tide, Inc. is a retail-focused cannabis company involved in the manufacture and distribution of consumption accessories, operating through Retail, Wholesale, and Corporate segments [2] - The company offers various brands including Canna Cabana, Fastendr, Grasscity, and others, and was founded in 2009, headquartered in Calgary, Canada [2] Earnings History - High Tide has experienced three consecutive misses of the Zacks Consensus Estimate, alongside one beat, with the most recent earnings showing a loss of -$0.03 against a consensus of -$0.02, resulting in a positive earnings surprise of 50% [4] Earnings Estimates Revisions - Earnings estimates for High Tide have been revised upward, with the full year 2025 loss estimate improving from -$0.05 to -$0.04, and 2026 estimates increasing from a gain of $0.06 to $0.11 [5] Growth Projections - Analysts project revenue of $421 million for the current fiscal year, indicating a 10.7% growth, with expectations of $548 million in the next fiscal year, representing a 29.9% sales growth [6] Valuation Metrics - High Tide does not have a forward PE ratio, but the projected multiple for the end of the next fiscal year is 31x, with a low price to book ratio of 2.9x and a price to sales ratio of 0.74x [7]
3 Cannabis Stocks to Watch After Trump's Marijuana Rescheduling Signal
ZACKS· 2025-08-22 14:36
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]