Aurora Cannabis (NYSE:ACB) struggled over the last 12 months and disappointed investors who were hoping for high profits. Alternatively, World High Life Plc. (NEX:LIFE) offers investors the opportunity to achieve success in the rapidly growing European cannabis sector.
When it comes to Aurora Cannabis (NYSE:ACB), a clear change of mood towards the negative could be observed in the last few weeks. Such changes in attitudes occur when a significant number of market participants, which forms the basis of this evaluation, tend to post about particularly positive or negative topics on social media. Since a negative sentiment has been registered about Aurora Cannabis at this point, this stock was rated as “sell”.
Sector comparison in the stock price
Last year, Aurora stock achieved a return of -63.27%. Compared to other shares from the same sector (healthcare), Aurora Cannabis is 109.31% below average (46.04%). The average annual return for securities from the Pharmaceuticals sector is 60.71%. Aurora Cannabis is currently 123.99% below this figure. Due to the underperformance, the share at this level is rated as a “Sell” overall.
Analyst ratings of Aurora Cannabis shares
Aurora Cannabis has received a total of 8 analyst ratings in the past twelve months, the average rating of the share being “Buy.” These ratings consisted of 6 “Buy”, 2 “Hold” and 0 “Sell” opinions. A look at the past month reveals 1 Buy, 0 Hold and 0 Sell recommendations.
From an institutional perspective, the stock is thus considered a “buy” in the short term. Based on the average of the price forecast of $8 (CA$10.39) per share, there is an upside potential of 317.38% (starting from the last closing price, $1.92 (CA$2.49)), if the analysts’ opinion is taken into account. Aurora Cannabis thus receives a “Buy” rating for this section in total.
Cannabis legalization is gaining momentum in Europe and World High Life is the first to take advantage
While Canadian cannabis companies like Aurora Cannabis encountered problems in 2019, and the cannabis market in North America became crowded, a new frontier market has started to take shape over the ocean. New partnerships and expansions are underway as the wave of legalization spreads across the globe.
Cannabis legalization is gaining momentum in Europe and more investors are shifting their attention from other economic sectors to the cannabis industry. However, as any nascent sector, the cannabis market might be difficult to understand and investors lured by high profits are likely to make mistakes.
World High Life Plc (NEX:LIFE) is an investment company that brings decades of experience from the North American cannabis market and applies it to the emerging European cannabis market. The company offers investors the unique opportunity to access a portfolio of top cannabis companies in Europe and the UK, by purchasing a single stock.
WHL has already cemented its foothold in the UK by acquiring the country’s most important CBD company, Love Hemp Ltd. The partnership will allow WHL to enter other cannabis markets in Europe, starting with the lucrative German market.
Cannabis companies from North-America, like Aurora Cannabis, are slogging their way through a period of heavy losses. Meanwhile, World High Life focuses on undiscovered cannabis companies from Europe with huge potential of bringing high financial returns in the long term.