Act Fast: 75 Only!
The stock market is composed of growth stocks, dividend stocks, income stocks, value stocks, and other names that come to mind. All of the adjectives point to financial gain. In 2019, two stocks emerged as the biggest movers or shakers, which means that their prices have gone through the roof from last year to the present.
Shopify Inc. (TSX:SHOP)(NYSE:SHOP) and Hexo Corp. (TSX:HEXO) belong to a different universe. But the two are the surprise packages on the TSX this year. Shopify is a cloud-based multi-channel commerce platform, while HEXO is a producer and seller of cannabis.
Many investors have derived huge gains trading the stocks dating back to 2018 and in the past five months. Both companies generated so much interest in the investing public, although the prices are on the extremes. SHOP sells for almost $370, while HEXO can be owned for less than $10.
Bridging merchants and customers
If you have a business idea and need an online presence, Shopify can help you launch a commercial venture. The company has done great things for small- and medium-sized companies. It doesn’t matter whether you’re in Canada, the U.S., U.K., Australia, and other international locations. Your business will flourish.
Shopify is one of Canada’s success stories. The 2019 run in the stock market has been incredible if not truly unbelievable. This time last year, SHOP was trading at $187.90. At the start of this year, the price was even lower at $187.11. But lo and behold, SHOP is selling at $370.73 today or an astronomical rise of 96.4%.
An unlikely weed stock winner
HEXO Corp. stunned the cannabis world and is outperforming industry giants Canopy Growth (TSX:WEED)(NYSE:CGC) and Aurora Cannabis (TSX:ACB)(NYSE:ACB). The stock rose steadily starting 2019 coupled with spikes and dips. Currently, HEXO is trading at $9.04, representing represents a meteoric climb of nearly 92% from the year-end closing price.
The $1.9 billion cannabis producer sealed a partnership with Molson Coors Canada (TSX:TP.A) in preparation for its entry into the cannabis-infused beverage market. The capital raised from the deal was utilized to acquire Newstrike Brands in order to ramp up annual production capacity.
Will the rise continue?
Shopify is the current darling of investors, while HEXO is an aspiring claimant to the throne. The stocks experienced a miraculous run indeed, but whether the rise will continue is a different story altogether.
Based on analysts’ projections, SHOP appears to have reached its peak. The financials are not that great, and top-line revenue has been rising in the last four years, though losses are also rising year after year. Is there enough steam left to propel the stock?
The narrative on HEXO is no different. All cannabis producers have been reporting massive revenue growth. However, net losses are piling up to alarming levels. The company’s losses almost doubled in 2018. Listing on the U.S. exchange might be the next significant move.
HEXO and Shopify are the market’s top two performers, but neither has attained a “buy and hold” status. The companies have a lot to prove moving forward.
