The Canadian stocks we’ve identified could bounce back quickly, as they are oversold with an average daily RSI of 32.5
SmallCapPower | March 29, 2021: Today we have discovered four Canadian stocks that are considered oversold, as indicated by a 14-day relative strength index (RSI) below 30. However, these companies have seen significant revenue gains in FY2020, when compared with FY2019, with average revenue increases of between 15% and 130%, meaning they have strong potential to rebound once the market selloff cools down.
*Share price and other metrics as of March 26, 2021
TerrAscend Corp. (CSE:TER) – $13.25
Cannabis
TerrAscend is a leading North American cannabis operator with vertically integrated operations in Pennsylvania, New Jersey, and California in addition to being a licensed producer in Canada. TerrAscend is known for its high-quality cannabis and best-in-class cultivation and manufacturing practices. The Company operates an award-winning chain of Apothecarium dispensary retail locations as well as scaled cultivation, processing and manufacturing facilities on both the East and West coasts. TerrAscend recently announced Q4FY20 financial results, which exceeded expectations with revenues increasing to $65 million, 28% higher than the prior quarter. Full year 2020 revenue came in at $198 million and the Company expects 2021 revenues to exceed US$290 million.
- Market Cap: $3,375.0M
- YTD-Return: +4.3%
- 1-Year Share Price Return: +440.8%
- 30-Day Average Trading Volume: 374,130
- F2020 Revenue: $198.3M
- F2019 Revenue: $84.9M
- 14-Day RSI: 34.2
Xebec Adsorption Inc. (TSX:XBC) – $4.29
Renewable Energy
Xebec is a global provider of gas generation, purification and filtration solutions for the industrial, energy and renewables marketplace. Well-positioned in the energy transition space with proprietary technologies that transform raw gases into clean sources of renewable energy, Xebec’s 1500+ customers range from small to multi-national corporations, governments and municipalities looking to reduce their carbon footprints. On March 2021, Xebec announced 2020 full year results, with its revenue rising $7.2 million to $56.5 million. Management also provided guidance of $110 million to $130 million in revenues for Fiscal 2021.
- Market Cap: $654.0M
- YTD-Return: -52.3%
- 1-Year Share Price Return: +57.7%
- 30-Day Average Trading Volume: 2,685,630
- F2020 Revenue: $56.5M
- F2019 Revenue: $49.3M
- 14-Day RSI: 26.9
Verano Holdings Corp. (CSE:VRNO) – $23.44
Cannabis
Verano Holdings is a leading MSO in the U.S. devoted to the ongoing improvement of communal wellness by providing responsible access to regulated cannabis products. With a mission to address vital health and wellness needs, Verano produces a comprehensive suite of premium, innovative cannabis products sold under its trusted portfolio of consumer brands: Verano, Avexia, Encore, and MÜV. The Company’s portfolio encompasses 14 U.S. states, with active operations in 11, which includes eight production facilities comprising approximately 750,000 square feet of cultivation. Verano designs, builds, and operates dispensaries under retail brands Zen Lea and MÜV that deliver a superior cannabis shopping experience in both medical and adult-use markets.
- Market Cap: $2,986.3M
- 30-Day Return: 20.3%
- 30-Day Average Trading Volume: 236,320
- F2020 Revenue: $178.8M
- F2019 Revenue: $66.0
- 14-Day RSI: 34.0
Cargojet Inc. (TSX:CJT) – $165.89
Airlines – Freight
Cargojet is Canada’s leading provider of time-sensitive overnight air cargo services and carries over 1.3 million pounds of cargo each business night. CJT’s air cargo business activities include the operation of domestic overnight air cargo co-load network between 14 cities in Canada, as well as provisions of dedicated aircraft to customers. CJT also operates scheduled international routes for various cargo customers between the U.S. and Bermuda, between Canada and Germany, and between Canada, Columbia, and Peru.
- Market Cap: $2,904.8M
- YTD-Return: -22.8%
- 1-Year Share Price Return: +74.5%
- 30-Day Average Trading Volume: 158,790
- F2020 Revenue: $668.5M
- F2019 Revenue: $486.6M
- 14-Day RSI: 34.7
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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