The market has rebounded somewhat in recent days in the hopes of the reopening of the economy following the coronavirus pandemic induced lockdown. However, the situation has not been great with pot stocks, which have continued to remain depressed. That being said, it is also true that it could be the perfect opportunity for investors to make clever investments in some of the notable pot stocks in the market. One of the pot stocks that stand out at this point in time is the HEXO Corp (TSX:HEXO) (NYSE:HEXO). There are some factors that make it one of the more compelling stocks in the market.
Hexo may have had its difficulties in recent times, but it is a company that has the wherewithal to eventually become one of the bigger players in the cannabis industry for years. It is not an attractive proposition merely because of the current rally but for generating potentially handsome returns for many years.
Hexo boasts of the second-highest number of patents among companies in the sector, and on top of that, it recently came up with Original Stash, its premium brand. Hexo has also created a research division and a food research laboratory in order to come up with more products.
However, that is not all. The company has managed to make a move into the potentially lucrative cannabis-infused beverage space and tied up with Molson Coors for the same. Hexo is collaborating with Molson Coors to launch a THC based beverage. According to studies, the cannabis-based beverage market could eventually grow into a $1.5 billion industry by 2026. If the company plays its cards right, then it could corner a significant portion of the market.
Hexo not only has a viable product in the pipeline in collaboration with a well-known brand, but it is also making progress in other avenues. Hence, the potential for growth is there, and investors could consider the stock.