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The Cheapest Stock in Canada Right Now

Can you guess the industry?

Andrew Willis 6 January, 2023 | 4:38AM
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Andrew Willis: If you clicked through to this video guessing that the “cheapest” stock in Canada was in the Cannabis industry, you’d be right – and you’d be very patient if you still had the optimism.

If you bought Curaleaf (CURA) around its IPO in 2017, you’d probably be down around 30%. Thankfully, you’re holding what is now the cheapest stock in our Canadian coverage universe.  The multi-state cannabis producer is now trading at a sizeable discount to our fair value estimate as the sector grows more slowly than expected.

From revenue growth as low as 1% from quarter to quarter to hurricane Ian closing stores in Florida and U.S. midterm elections that could've swayed policy, Curaleaf is surrounded by uncertainty. But sector strategist Kristoffer Inton, like other patient investors, is sticking to a long-term view – estimating revenue in the billions and margins around 40% by 2026 – as this “late harvest” could be well worth the wait.

For Morningstar, I’m Andrew Willis.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Curaleaf Holdings Inc5.15 CAD0.00Rating

About Author

Andrew Willis

Andrew Willis  is Senior Editor at Morningstar.ca. He previously produced content for Fidelity Investments and finance industry events for Euromoney Institutional Investor and has written in the past for Thomson Reuters and CNN. Follow him on Twitter @Andrew_M_Willis.

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