Aurora Cannabis (TSX:ACB)(NYSE:ACB) stock was down 0.70% in early afternoon trading on June 25. Cannabis stocks have slipped in late June along with the broader TSX.
There is still considerable anxiety over whether central banks will move to soften rates in the coming months. The cannabis sector has often been one of the first to be hit by volatility.
Recreational cannabis sales have plunged since legalization, which is a worrying trend in this young industry. Canada has largely fumbled this big opportunity and ceded its opportunity to be a powerful player in this emergent sector. Producers that are thriving are focusing on international markets. Canopy Growth is one, and Aurora Cannabis is another.
Aurora sold nine metric tons of cannabis in the prior quarter, and the company is edging closer to profitability. Its large cultivation footprint puts it in a great position to bypass weakness in the recreational market.
Of course, there is also the introduction of edibles into the market coming later this year. Aurora is expected to focus on vapor, though it has the size to offer a suite of new products.
Investors are also waiting anxiously on how Aurora will move forward after the addition of strategic advisor Nelson Peltz. This is expected to produce lucrative partnerships down the line.
Aurora stock had an RSI of 39 as of this writing. This puts it close to technically oversold territory in late June. I like Aurora priced in the single-digits for long-term investors today.
