Why Undervalued Tilray Stock Is a Hidden Cannabis Gem in Plain Sight

Stocks to buy

Here’s a buy-low-and-just-hold-it opportunity that will reward patient individuals. Tilray (NASDAQ:TLRY) stock is trading at a low price in October, and investors should start accumulating shares before they double, triple or more.

Tilray is truly a leader in the cannabis industry, not only in Canada but worldwide. Yet, currently, the financial market doesn’t seem to appreciate Tilray’s progress as a company. That’s fine, as it presents an opportunity for enterprising investors who like to buy stocks at a deep discount.

TLRY Stock Is Getting Too Cheap to Ignore

It’s amazing to watch Tilray shares lose value even though the company has such a powerful presence in the cannabis industry. Tilray has the No. 1 cannabis market share in Canada, which could be considered the most pro-cannabis country in the world.

The market seems to be completely ignoring Tilray’s growth. The company now owns Aphria, Hexo and Truss Beverages. Furthermore, Tilray agreed to acquire eight beer and beverage brands from Anheuser-Busch (NYSE:BUD), making Tilray the fifth-largest craft beer company in the U.S.

Not only that, but Tilray is establishing itself as a pioneer through the company’s efforts to use eco-friendly product materials. Specifically, Tilray is transitioning its Good Supply cannabis brand to environmentally friendly materials.

That’s a win-win, but so far, it looks like stock traders haven’t paid attention. TLRY stock broke below $2 not long ago, even after surging to $3 multiple times this year. I consider this to be an irresistible bargain, though it takes guts and patience to buy a stock that other traders are selling.

Tilray’s Path to Profitability

Moreover, short-term stock traders are too dismissive of Tilray’s progress toward profitability. In the first quarter of fiscal 2024, Tilray reduced its net earnings loss to $56 million, versus a net loss of $66 million in the year-earlier quarter.

That’s impressive, considering the aforementioned acquisitions (Aphria, Hexo, etc.) that Tilray has made. It’s perfectly normal for a company to incur bottom-line losses after it makes large acquisitions. These are short-term financial sacrifices that could result in huge profits down the road.

Also, Tilray grew its revenue 15% year over year and increased its Canadian cannabis market share to 13.4% in Q1 FY2024. In addition, Tilray increased its international cannabis revenue by 37%. This is proof positive that Tilray is truly a global cannabis enterprise.

TLRY Stock: The Discount Won’t Last Forever

Patience will be crucial here, as Tilray needs time to achieve profitability. It also requires courage and conviction to buy the shares when they’re losing value.

Tilray is a leader among cannabis companies and is pioneering an eco-friendly movement. Also, Tilray’s international cannabis revenue growth is highly encouraging. Therefore, I encourage risk-tolerant investors to take advantage of the heavy selling in TLRY stock and start a small share position today.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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