Hempacco Co., Inc. (NASDAQ: HPCO) develops, commercializes, and distributes hemp smokables. It aims to disrupt tobacco using herb and hemp-based alternatives to tobacco cigarettes. All its products comply with laws and regulations governing the distribution and sale of hemp, cannabis, and related products.
Stock Performance
Hempacco (HPCO) stock has been doing quite well recently. The stock closed 44.17% higher on December 7, 2023, at $0.4850 per share. However, the stock is down -14.6392% in pre-market trading as of December 8, 2023. Year-to-date, the stock is down 39.38%, and in the last six months, it has lost 4.90% of its value.
The stock has been bullish in recent months, gaining 27.63% in the past three months. Despite the recent gains, the stock’s price is at a huge discount on its 52-week high of $4.49 per share.
Why Hempacco Stock Is Rising
One reason why HPCO stock has changed trajectory is its global expansion plans. On December 7, the company revealed that it had signed a deal with CBDAY Global. The deal will see CBDAY distribute its hemp and CBD products in Thailand and India.
CBDAY Global CEO Siddharth Shivkumar commented on the deal that the Indian hemp market could become a trillion-dollar industry. Daniel Ortego, Hempacco’s VP of Sales, said that the deal would give them access to the Asian market, which was the world’s largest market for hemp smokables.
In November, Hempacco also revealed that they were working with Snoop Dogg to launch a line of THCA Vapes. While vaping has traditionally been used for tobacco-based products, the new product line will see hemp-based vaping products reach the mass market.
Hempacco Financial Performance
In its most recently reported quarter, Hempacco had a revenue of $1.33 million, a 123.90% year-on-year growth. EPS for the quarter was at -$0.08. Since I was publicly listed, the company has never reported a net profit. The company has a relatively small market cap of $14.136 million.
Hempacco Stock Forecast
Hempacco is rated as a strong sell by analysts based on various factors. They include the stock’s 10-day exponential moving average of $0.34, while its current price is $.4850. The stock’s price is below its 100-day exponential moving average of $0.40. Additionally, it is trading below the 50-day and 200-day moving averages of $0.3595 and $0.4839, respectively. Based on these technical indicators, the strong sell rating by analysts is accurate.
Should You Buy HPCO Stock?
Hempacco stock has taken bold steps to capture market share from the tobacco industry. It is also expanding into the Asian market, which is the largest for hemp smokables. However, trying to dislodge big tobacco will be an uphill task. Besides that, it still has to contend with conflicting regulation that gives big tobacco a significant advantage.
However, as the world trends away from combustible tobacco products, HPCO could grow its market share. Additionally, regulation worldwide is changing, making distributing and selling hemp-based products easier. Based on that, HPCO stock could pay off in the long run. Consequently, the sell rating by stock analysts in the short term is accurate.
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