The vaccine euphoria has been driving the Canadian equity markets since the beginning of November, with the
S&P/TSX Composite Index rising close to 13%. Currently, the index trades just 2.1% lower from its all-time high. Amid the improved investors’ sentiments, here are the three undervalued stocks that could deliver high returns in 2021.
Canopy Growth
First on my list is
Canopy Growth (TSX:WEED)(NYSE:CGC), one of the world’s largest cannabis companies. Amid the increased interest in cannabis stocks and its strong second-quarter performance, Canopy Growth’s stock price has risen 34% since the beginning of last month. Despite the recent surge, the company trades over 50% lower from its all-time high, as the structural issues in the cannabis sector had weighed heavily on its stock price.
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The structural issues, such as lower-than-expected demand, oversupply, thriving black market sales, and slow rollout of retail stores in some Canadian provinces, had plagued the cannabis industry.
However, the victory of Joe Biden in the United States presidential elections last month and the legalization of cannabis in five U.S. states have brought some relief to the sector, with the industry benchmark
Horizons Marijuana Life Sciences Index ETF rising close to 40% since the beginning of November. Amid the renewed interest, here are the three cannabis stocks to buy for superior returns in 2021.
Canopy Growth
Since the beginning of last month,