Why Is Everyone Talking About Aphria Stock?
In the last three months, the S&P 500 has rebounded by over 36% as hopes of an economic recovery materialized. At the same time, shares of Canadian pot producer Aphria (NASDAQ: APHA) have more than doubled the index's performance, returning over 78% during the same period. It's rare for a pot stock to beat the market these days. An exchange-traded fund that tracks the performance of all major pot stocks, the ETFMG Alternative Harvest ETF (NYSEMKT: MJ), has grown just 40% in the last three months. So everyone's been talking about why Aphria has been able to best its cannabis competitors amid a pandemic and a recession.
Because Aphria's stock has rallied significantly, investors are wondering whether it's a good idea to sell their shares now and take profits, or hold their positions while the stock appreciates higher. I think the latter is the best path because many of the risks Aphria was facing have been cleared, and the stock can still be bought for an absolutely dirt-cheap valuation. Let's take a look at why.
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Source Fool.com
