TLRY Stock: Here’s What’s Coming in 2023

Tilray Inc. (TSX:TLRY) is geared up for big growth this decade and looks like one of the top cannabis stocks to own in the new year.

| More on:
A cannabis plant grows.

Source: Getty Images

The cannabis sector has continued to drive the performance of the S&P/TSX Capped Health Care Index to kick off the new year. This sector has had a strong start to 2023. Tilray (TSX:TLRY) is an Ontario-based company that is engaged in the research, cultivation, production, marketing, and distribution of medical cannabis products in Canada, the United States, Europe, Australia, New Zealand, Latin America, and internationally.

Today, I want to discuss what lies ahead for Tilray and the cannabis sector at large in 2023. Let’s jump in.

How did this cannabis stock perform in 2022?

Shares of this top cannabis stock have plunged 45% year over year as of early afternoon trading on Friday, January 20. However, the stock has jumped 6.8% in the opening trading weeks of the new year. Investors who want more details can toggle the interactive price chart below for Tilray.

Should investors be encouraged by Tilray’s recent earnings?

Tilray unveiled its second-quarter (Q2) fiscal 2023 earnings on January 9, 2023. The company finished the quarter with 8.3% cannabis market share, which puts it in the top position among cannabis producers in the country. Meanwhile, beverage-alcohol sales climbed 56% to $21.4 million. This included revenue from acquisitions.

The company posted gross profit of $40.1 million in Q2 FY2023 — up 22% compared to Q2 fiscal 2022. Moreover, cannabis gross profit jumped 37% to $18.6 million. Meanwhile, its gross margin percentage rose to 37% compared to 23% in the previous year. Tilray met success after implementing several cost-savings programs. The company has seen strong success since the Tilray-Aphria transaction in May 2021, achieving $119 million in cost savings.

Here’s why Tilray is one of my favourite cannabis stocks on the TSX right now

Canada’s cannabis market has battled challenging conditions since recreational legalization became official in October 2018. Tilray has stood out among its peers due to its popular brands and products. The company is focused on product innovation as well as data and consumer insights to drive business going forward.

Tilray also hopes to win big from the growing trend of medical and adult-use recreational cannabis acceptance across Europe. Germany, Europe’s largest market, holds promise for the company, as it already boasts a domestic footprint in the form of its Aphria RX facility. It also boasts a facility in Portugal.

The company also aims to expand its United States CPG and craft-beverage portfolio in the months ahead. It already owns the SweetWater Brewing Company in the U.S., the 10th-largest craft brewer south of the border. Tilray plans to significantly expand its distribution in the northeast to bolster its national brand.

Is this cannabis stock worth buying today?

Shares of Tilray are trading in favourable value territory compared to its industry peers at the time of this writing. Meanwhile, this top brand is geared up for strong revenue growth going forward. This remains the top cannabis stock available on the TSX. It has already captured poll position among the top producers and is well positioned to expand its influence internationally.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Cannabis Stocks

A close up image of Canadian $20 Dollar bills
Tech Stocks

3 No-Brainer Stocks to Buy With $20 Right Now

These three stocks are easy buys for those who don't have all that much to spend, and want long-term growth…

Read more »

Pot stocks are a riskier investment
Cannabis Stocks

Slow Burn: Is Aurora Cannabis Finally a Good Buy in June?

One of the benefits of choosing from some of the most beaten-down market segments like cannabis is that even a…

Read more »

Caution, careful
Cannabis Stocks

I Wouldn’t Touch This TSX Stock With a 60-Foot Pole

I wouldn't touch Canopy Growth Corp (TSX:WEED) stock with a 60-foot pole.

Read more »

edit Cannabis leaves of a plant on a dark background
Cannabis Stocks

Why This Little-Known Cannabis Stock Could Double in 2024

This cannabis stock has already doubled this year since 52-week lows and could easily rise that much once more.

Read more »

Bad apple with good apples
Cannabis Stocks

1 TSX Stock I Wouldn’t Touch With a 420-Foot Pole

Down 87% from all-time highs, Cronos Group stock is a still a high-risk investment for long-term shareholders in 2024.

Read more »

A cannabis plant grows.
Cannabis Stocks

Canopy Growth: Buy, Sell, or Hold?

Canopy Growth (TSX:WEED) stock should make a killing on U.S. expansion, but investors will need to be very patient.

Read more »

Marijuana plant and cannabis oil bottles isolated
Energy Stocks

3 Canadian Value Stocks to Buy Right Now

Undervalued Canadian stocks such as Secure Energy should be part of your shopping list in May 2024.

Read more »

edit Cannabis leaves of a plant on a dark background
Cannabis Stocks

Here’s Why it’s Not Too Late to Buy Cronos Group Stock

The optimism about U.S. federal marijuana legalization and its anticipation are potent bullish triggers for the Canadian cannabis industry.

Read more »