Tilray (TLRY) is set to release its second-quarter earnings today after the market closes. The company’s stock has been gaining momentum ahead of its earnings results, with a 2.5% gain so far today. However, Tilray has delivered a lackluster performance so far this year.
YTD (year-to-date), Tilray has delivered a return of -39%. In contrast, its peer Canopy Growth has returned almost 20% to investors so far this year. Aphria has also managed to deliver a healthy return of 14% to its investors YTD.
Will Tilray pop or drop?
Expectations for Tilray’s earnings are running high, as is evident in the stock’s positive momentum ahead of its earnings release. To learn more about what the market has priced in to the stock, read Tilray: What to Expect from Its Q2 Earnings Today.
In the event that the company manages to post better-than-expected results, we should see its stock rise. However, expect the opposite to be true if the company fails to meet expectations.
What to watch
Among other things, it’s important for us to keep an eye the company’s guidance. We want to know what the company thinks about its near-term expectations, which will help shape the momentum for its stock in the coming weeks.
We’re also interested in knowing how the company will progress in the medical market, especially considering that it recently announced a clinical trial in partnership with New York University.
The best cannabis stocks in August
Tilray recently made it to our list of the best cannabis stocks in August. The company made the list as a result of its consistently trading at a premium to the peer median. Peers Innovative Industrial Properties and Cronos Group also made the list. For more details, check out Which Are the Best Cannabis Stocks in August?
A key factor for investors to consider will be to the notes from Tilray’s earnings call. Usually, analysts’ questions to management include quality details about a company’s fundamentals and strategic direction. We’ll post an in-depth analysis of Tilray’s earnings after its earnings call.