Many point to relative valuations as a reason to buy Aurora Cannabis (NYSE:ACB) stock. While most marijuana stocks trade at multiples exponentially higher than S&P 500 averages, ACB stock has lagged most of its peers. However, despite this lower valuation, investors should avoid the assumption that Aurora stock will catch up.
I surmised in a recent article that traders should wait for ACB stock to report its earnings before buying. ACB lacks a catalyst and has failed to break out of the approximate $8-$10 per share range established early in the year.
Aurora stock steadily dropped until earnings. While the stock enjoyed a brief post-earnings bump, it has since given back most of that gain. It trades at around $8.25 per share at