HEXO
Amid the increased interest in the cannabis sector, Hexo (TSX:HEXO) (NYSE:HEXO) has returned over 130% this year. Meanwhile, the rally could continue, given its growing addressable market and growth initiatives. In November, five U.S. states had legalized some form of cannabis. Meanwhile, many other states, such as New York, Florida, and Ohio, could legalize cannabis soon.
HEXO has also taken several growth initiatives to capture the expanding cannabis market. On Tuesday, the company signed an agreement to acquire Zenabis Global for $235 million in an all-share transaction. The transaction would position HEXO as one of the top three licensed producers in the Canadian recreational market. It also provides HEXO access to the European markets. Further, the synergies between the two companies could deliver $20 million of saving within one year of completion of the transaction.
Apart from this acquisition, HEXO has relaunched UP brand products in December, with higher THC content and improved quality. Further, in association with Molson Coors , the company has introduced a new line of non-alcoholic CBD beverages in Colorado. So, the company’s growth prospects look healthy.
WELL Health
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Real Matters
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Cineplex
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The widespread vaccine distribution could allow Cineplex to operate at full capacity, thus boosting its financials. Further, the pent-up demand and the postponement of major movies from last year to this year could also drive traffic for Cineplex. So, Cineplex could deliver superior returns over the next two to three years.
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The Motley Fool recommends BANK OF NOVA SCOTIA, HEXO., HEXO., and Real Matters Inc. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.