Is SNDL Stock a Buy?
SNDL (NASDAQ: SNDL) has transformed its business over the past few years. After becoming a hot meme stock in early 2021, the company raised capital through multiple offerings and became hungry for acquisitions. Previously just a cannabis producer, it now owns pot shops, and the bulk of its revenue comes from liquor stores.
Although SNDL is a vastly different company, it still has problems attracting investors. Down 64% year to date, it has underperformed not just the S&P 500 (down 24%), but also the Horizons Marijuana Life Sciences ETF, which has fallen by 52%. So is the stock an underrated buy at its reduced valuation?
SNDL hasn't been a great buy by any stretch, but given the transformation the cannabis company has made, it's clearly not the same company it was just a few years ago. Since its acquisition of liquor store operator Alcanna, the company's business centers more around alcohol than cannabis. SNDL reported 223.7 million Canadian dollars of revenue for the period ending June 30, and CA$148.6 million, or two-thirds of that, came from liquor retail.
Source Fool.com
