2 Bruised Growth Stocks That'll Survive the Bear Market
With the AdvisorShares Pure US Cannabis ETF falling by nearly 60% in the last 12 months and the S&P 500, representing the wider market, buckling nearly 10%, it's clear that the challenging macroeconomic outlook is especially harsh for high-growth industries like cannabis. To complicate matters, these bearish conditions are occurring at the same time as general turmoil in the cannabis industry wrought by an oversupply of marijuana products and numerous companies struggling to become or remain profitable.
Nonetheless, there are a couple of cannabis growth stocks that should certainly survive the headwinds affecting their underlying businesses and returns. That doesn't mean these two will outperform the market anytime soon -- because they probably won't -- but it does mean there's potentially an opportunity for daring investors to load up on shares while things are looking grim.
After falling by more than 73% in the last 12 months, the market does not seem to be optimistic over Tilray Brands (NASDAQ: TLRY) stock. But with $415.9 million in cash and a trailing 12-month revenue of $628.3 million, it won't have much of a problem covering its operating expenses, which totaled $366.6 million last year, so its survival isn't in question. What's more, it could soon get its chance to more fully exploit the cannabis market in the E.U. This summer, several European countries, including Germany, Malta, and Luxembourg, made early political moves to pave the way for recreational cannabis legalization.
Source Fool.com
