Is It Undervalued? Look at the P/E Ratio: CannTrust Holdings Inc. (CTST), Tilray Inc. (TLRY)

You should consider shares of CannTrust Holdings Inc. (NYSE:CTST) and Tilray Inc. (NASDAQ:TLRY) if you are looking for a great stocks to invest in. Starting with the CTST shares, which traded at $0.78 at the close of the recent session, gaining 0.93%. On Tuesday, the company’s shares shed $0.01 from its value which represented in intraday trading. The stock is now -87.24% lower in year-to-date (YTD) trading. CTST’s intraday high was $0.783 while its lowest price touched $0.75. The stock’s 52-week high price is $10.17, which means the current price is at -92.31%. In terms of trading activity, the daily trading volume fell to 1219372 against 200-day average trading volume of 3,038,586 shares.

What are analyst forecasts for CannTrust Holdings Inc. (NYSE:CTST)?

At a consensus rating of 4.50, CTST is trending as a streaking Strong Buy, as it has been the case a month ago when 4 analysts called it a Strong Buy. Two months ago, 4 analysts recommended, on average, that CTST stock is a Strong Buy. The Healthcare company’s shares’ overall bullish trend saw it close lower on Tuesday compared to its opening price of $0.7717 on the day.

Forecasts for CannTrust Holdings Inc. (NYSE:CTST) give the stock a fair value for the growth of 49.02% from its last price. The 12-month price forecast for the stock by analysts puts the stock’s mean price target at $1.53, which means the price per share could rise by nearly $0.75. The price range target is between a low of $1.53 and a high of $1.53. The stock would need to gain by about $49.02 to hit the estimated high or 0.99% from its 12-month low.

The consensus among 2 analysts is that it is a good time for one to Underweight in the CannTrust Holdings Inc. 0 analysts rate CTST as a Buy, with 1 of 2 analysts rate it as a Sell. 0 have valued the stock as Overweight and 1 have recommended that investors Hold.

CannTrust Holdings Inc. (NYSE:CTST) Upgrades and Downgrades

In terms of rating changes, ROTH Capital on July 09, 2019, Downgrade CannTrust Holdings Inc. (CTST) at Neutral. Analysts at BMO Capital Markets have assigned a Outperform rating for the stock in their research note on May 30, 2019. Moreover, BofA/Merrill analysts issued a rating of Buy for the stock on May 24, 2019.

Tilray Inc. (NASDAQ:TLRY) adds $0.54 on Tuesday

The TLRY stock has tanked -72.29% year-to-date and is currently trading at $19.55, which is -82.12% below its 52-week high. The company shares gained 2.84% on the day and have risen nearly 4.38% off a low hit. At current levels, Tilray Inc. has a valuation of about $135.60M. As of 12/03/19, this stock has fallen -5.96% during the week and closed at $19.01 in the previous session. However, recent Tilray Inc. stock performance shows that TLRY shares are -9.57% down over the last month, and -34.83% down for the last three months.

Earnings per share (EPS) estimates for the current quarter are -$0.14, with the trailing 12-month share earnings at -$1.62. The ratio is expected to be down by -79.50% for the current year 2019 and 31.40% for next year. But will the TLRY stock surprise in the current quarter results, where the -$0.36 actual EPS reported on 9/29/2019 surprised by -24.10% or was lower by -$0.07 from the estimated -$0.29.

Sales Growth to climb 77.00% for the year

How well will Tilray Inc. perform as a business over the current quarter, year and next 5-year period? Compared to the year-ago quarter, analysts forecast the company to bring in between $41.5M and $61.8M in current quarter sales. The consensus estimated for the current quarter is $55.34M from sales. Forecasts for this fiscal year are between $162.08M and $179M and the consensus estimate for sales is at $175.12M. TLRY has its next quarter sales estimates at between $50.7M and $69M, with the quarter-over-quarter growth estimates at 175.00% and the annual growth forecast for the year at 77.00%.

Who owns shares in Tilray Inc. (TLRY)?

Let’s briefly focus on the share ownership of the Tilray Inc. (NASDAQ:TLRY) stock, where we find that 10.10% of shares are held by institutions. Mirae Asset Global Investments Co., Ltd. tops the list of institutional owners as it is holding 2.73 million shares or 3.26% of shares outstanding. ETF Managers Group, LLC and Zevenbergen Capital Investments LLC held 2.04 million and 889515.0 representing 2.43% and 1.06% respectively at the close of the last trading session. As of Sep 29, 2019, Morgan Stanley accounted for 383641.0 shares at over 9.49 million. This represented 0.46% of shares outstanding. Newtyn Management, LLC held 304036.0 shares at over 7.52 million representing 0.36% of shares outstanding.

TLRY Insider Activity

Insider activity can also give a signal in terms of price direction. Looking at Tilray Inc. (TLRY), a total of 8605 shares have been sold by insiders over the last 6 months while 352186 shares were added in the same time span. On 1/24/2019, President & Chief Executive Officer by the name Kennedy Brendan sold 149916.0 shares worth $11.1 million at the price of $74.21 per share. Filings also show that Castaneda Mark sold a total of 78700.0 shares on 7/18/2019 valued at $3.4 million. Since the last insider activity, the company’s share price has dropped -56.21%.