Are these the best cannabis stock to buy in 2022?
- Cannabis stocks have plummeted significantly since spiking in early 2021.
- Canopy Growth and Tilray are down 82% and 89%, respectively since last February.
- Both stocks trade at compelling P/B ratios.
Cannabis companies mainly invest in medical and recreational marijuana. However, more segments continue to emerge in the industry including CBD oils and industrial hemp, among others. Here, we look at the top cannabis stocks to watch in 2022.
Canopy Growth Corp (TSE:WEED) shares have plummeted more than 82% since February last year, pushing its price-book ratio down to just 0.79. Analysts expect its earnings per share to grow by 108% this year before declining by 286% next year.
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Therefore, the stock could be an exciting short-term buy ahead of a potential rebound.
Technically, Canopy Growth shares seem to be trading within a descending channel formation in the intraday chart. However, the stock seems to have recently bounced back after finding support.
Therefore, investors could target extended rebound profits at about $9.81, or higher at $11.18, while $7.34 and $5.91 are crucial support zones.
Like its counterpart, Tilray Inc. (NASDAQ:TLRY) shares have also plummeted significantly over the last 11 months. The stock is now down nearly 90% since last February, pushing its price-book value down to 0.67.
In addition, analysts expect its bottom line to improve by 36.60% this year, making it an interesting option for short-term buyers.
Technically, Tilray stock also seems to be trading within a descending channel formation, pushing it closer to oversold conditions.
Therefore, investors could target technical rebounds at about $8.32, or higher at $9.90, while $4.68 and $2.96 are support levels.
Where to buy right now
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