Canopy Growth Corp (TSX:WEED)(NYSE:CGC) is set to release its quarterly earnings on Thursday. And with the stock sliding below $60 recently, investors may be wondering if now is a good time to buy the stock. The upcoming quarter will be the first one for the company that includes recreational sales for all but a few weeks in early October. It’ll be a big test for Canopy Growth given it missed its last quarter’s revenue targets by a big margin.
It’s a bit of a gamble and expectations might be a bit lower given the disappointing quarter Canopy Growth released back in November. However, if you believe the company will fall short of expectations, which really has been par for the course in the industry lately, a better move might be to simply wait for the inevitable selloff that will happen if Canopy posts a big loss and misses on its top line.
The stock has been very volatile and it was just around Christmas time that it was trading below $40 a share. While I’d be surprised to see that level of decline for missing expectations, it highlights just how quickly things can go south when it comes to pot stocks. With Canopy Growth likely spending a lot on expansion into the U.S. and its countless other projects, there’s a realistic chance that we may see a red number on Thursday.
For that reason, I would not buy before earnings, I’d keep a close eye on the stock to see how much of a fall it might have in the days following its quarterly results.
