Florida continues to be one of the fastest-growing cannabis markets in the US. That trend has been on full display during COVID-19, with Florida seeing a huge spike in medical cannabis sales while other industries are crumbling.
Earnings season kicks off this week. This is the most important time of the quarter for cannabis stocks. This is the time when companies release their quarterly earnings reports to update shareholders on important performance data such as sales and earnings.
Studies show that these reports have a big impact on a company’s share price – and that can create a great investment opportunity.
Put simply, a company that beats earnings expectations should see its share price rise for the next few weeks and months. Conversely, companies that miss earnings expectations should see shares drift lower in the following week and months.
The S&P 500 has seen a big rebound in the last two weeks, up 25% from the recent low made in late March.
The big rebound in stocks has given relief to investors that watched their accounts plunge in the first half of March.
The strength in the broader stock market has been great for cannabis stocks. The cannabis sector has also seen a big jump. The Alternative Harvest ETF (MJ) is up 37% since mid-March, outpacing the gains in the broader stock market.