Several challenges, including restricted access to capital and a stigma surrounding cannabis use, could impede the industry’s growth. On the other hand, with cannabis laws gradually becoming more favorable for the cannabis industry, more players are entering the space, making the industry increasingly competitive. Therefore, not all cannabis operators are well-poised to withstand the challenges and survive in the heavily competitive market.
Given this backdrop, it could be wise to steer clear of cannabis stocks HEXO Corp. (HEXO), Flora Growth Corp. (FLGC), and Neptune Wellness Solutions Inc. (NASDAQ:NEPT), which possess weak fundamentals. These stocks declined more than 15% in price in October.
