CGC Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Canopy Growth Corp (CGC) is not a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company is facing significant financial challenges, declining revenue, and poor growth metrics. Additionally, technical indicators and trading sentiment do not support a strong entry point.
The stock is in a bearish trend with MACD negatively expanding, RSI at 24.254 indicating oversold conditions but not a clear buy signal, and moving averages showing bearish alignment (SMA_200 > SMA_20 > SMA_5). The price is near key support at 1.036, but the overall trend remains weak.
The company is adjusting its business strategy to enhance competitiveness and has emphasized the importance of acquiring MTL Cannabis to strengthen its market position.
The company's aggressive expansion strategy has backfired, leading to a severe drop in market cap. Financial performance is deteriorating with significant YoY declines in revenue (-0.29%), net income (-48.62%), EPS (-83.78%), and gross margin (-10.64%). Analysts have lowered price targets, and the stock has no recent support from hedge funds, insiders, or congress trading.
In Q3 2026, Canopy Growth reported revenue of $74.54 million (-0.29% YoY), net income of -$62.63 million (-48.62% YoY), EPS of -0.18 (-83.78% YoY), and a gross margin of 28.8% (-10.64% YoY). These metrics indicate poor financial health and declining performance.
Analysts maintain a Neutral rating on the stock, with a recent price target downgrade from C$2.50 to C$1.80 due to concerns about veteran reimbursement changes and gross margin uncertainty. Previous optimism regarding the MTL Cannabis acquisition has faded.
