Is HEXO Stock a Buy on the Dip?

Canadian cannabis producer HEXO (NYSEMKT:HEXO) recently unveiled results from the three months ended April 30, 2019. There were some impressive top-line numbers, but they were largely ignored and the stock finished the week of its announcement 32% lower than a peak it reached near the end of April.

Is this dip a chance to pick up a leading cannabis producer at a discount, or could this be the beginning of a longer slide? Here’s what you need to know about HEXO’s chances to turn this ship around.

Image source: Getty Images.

Reasons to buy

There aren’t many industries growing faster than licensed cannabis right now. Using 2018 as a baseline, global sales are expected to double by 2022.

In 2019, worldwide sales of legal marijuana are expected to come in 38% higher than a year earlier, and HEXO’s top line bears this out. During the company’s fiscal third quarter, net

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