SNDL Stock Forecast: Sundial Growers inches higher as stocks rise for second straight day

NASDAQ:SNDL rose higher for the third straight trading day as the Canadian cannabis stock attempts to form a bottom on its chart. On Wednesday, shares of SNDL added 1.46% and closed the trading session at $0.35. After Fed Chairman Jerome Powell reiterated that more restrictive measures would be taken to battle inflation in the US economy, all three major averages closed the day higher. The Dow Jones gained 69 basis points, while the S&P 500 and the NASDAQ rose by 0.36% and 0.35% respectively during the session.

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Canadian cannabis giant Tilray (NASDAQ:TLRY) made an announcement of another product line launching in the Province of Quebec. The line in question is called Good Supply and is a high-margin brand that offers hash-infused, pre-rolled joints that target the high-potency cannabis market. The news led investors to believe that if the product is successful in Quebec, Tilray could opt to do a nationwide launch in the near future. While this shouldn’t be viewed as a cure-all for Tilray’s struggles, it could be the sign of management starting to make the right moves in growing their high-margin product offerings. Shares of TLRY were up by 8.02% during Wednesday’s session.

Sundial stock price

As Sundial continues to expand its business through acquisitions there are concerns that it is spending too much of its warchest. Sundial has a trailing-12 months revenue of $63 million according to Yahoo finance, which means the stock is trading at about 12.5 times sales. This is still quite a high price multiple, especially considering near-term growth isn’t looking too bright in the cannabis industry. This makes Sundial an expensive stock and it still needs to somehow get back above $1.00 by August to remain listed on the NASDAQ exchange.

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