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APHA stock is my top pick among cannabis stocks making a comeback. Even when the sector was depressed, APHA stock was relatively resilient. In the last six months, the stock has surged by 82%. I believe that there is more juice in the rally in the medium to long term.
One reason to like Aphria is the fact that the company has been delivering positive EBITDA. The first quarter of 2021 was the sixth consecutive quarter of positive EBITDA. Most cannabis companies have struggled to be positive at EBITDA level.
Further, for the company’s fiscal Q1 2021, the company reported net cannabis revenue of $62.5 million, which was higher by 103% on a year-on-year basis. Therefore, the core business has been delivering strong growth. Another positive development was the company’s first certified European Union Good Manufacturing Practices shipment of dried flower. The company is gradually positioning itself as a key player in the recreational and medicinal cannabis segment.