Is Aphria Stock (TSX:APHA) (NYSE:APHA) A Solid Value Buying in May?

The cannabis sector has gone through its fair share of difficulties over the past year, but some stocks have managed to garner interest among investors all the same in recent days. The stock in question is Aphria Inc (TSX:APHA) (NYSE:APHA). There had been a lot of optimism around the sector in the past, but over the past year or so, a range of issues damage the cannabis space significantly.

Key Analysis

Oversupply, slow rollout of stores and the continued presence of the black market are some of the factors. However, over the past month, Aphria has enjoyed a rally, and it is important to figure out if it is the top cannabis stock at this point.

While the Aphria stock is down 54% this year up until April 23, it should be noted that it has gained 28% over the past month and remains one of the five major cannabis producer stocks on the TSX. Its performances in the fiscal third quarter are possibly the reason behind the rally in recent weeks.

Revenues for the quarter soared to as much as $144.4 million, and that reflected a year on year rise of 96%. The sequential rise stood at 20%. While it made a loss of $9.6 million in the prior-year period, Aphria generated a net income of $8.7 million in Q3 2020.

Last but not least, investors should also consider the fact that at the end of the third quarter, the company had $551.1 million in cash and cash equivalents. It will help Aphria in navigating the current period of uncertainty effectively and also allow it to make strategic acquisitions if the opportunity arises.

While the present state of affairs at Aphria is promising for the stock, investors might be looking for a bump in the whole sector. However, the sale of cannabis has soared since March due to the lockdowns, and that is a major positive for Aphria. Many markets in Europe are also set to open, and that is another positive for the company.

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