On January 6, 2023, CRLBF Stock was trading at $1.96, up 2.08 percent from the beginning of the trading day. Cresco Labs’ lowest price was $1.9. Our daily equity ratings for Cresco Labs are determined using a scoring system based on the likelihood that the company will face financial difficulties within the next few years. Additionally, Cresco Labs has experienced negative returns over the last 90 days.
Scores are calculated for the period beginning October 8, 2022, and ending January 6, 2023.
Through its subsidiaries, Cresco Labs Inc. cultivates, produces, and distributes retail and medicinal cannabis products in the United States. As a Drug Manufacturers Specialty Generic company, Cresco Labs was founded in 2013 and had its headquarters in Chicago, Illinois. The company is listed on the OTC Exchange and has outstanding shares of 280.99 million.
Most of Cresco Labs’ outstanding shares are held by insiders. In most cases, an insider is a CEO, another business leader, director, or institutional investor who owns at least 10 percent of the firm’s shares. Since insiders possess such a substantial proportion of the company’s stock, it is prudent to examine whether each of these insiders has been purchasing or selling shares in recent months.
It does not matter who owns the firm or if it is presently losing money. If the company’s actual worth exceeds its current market price, you may still have a fantastic investment opportunity.
CRLBF Stock Assessment
According to a normal probability distribution, it is more than 95.77 percent likely that Cresco Labs’ goal price will surpass the current price within 90 days. Cresco Labs’ probability density function predicts that its over-the-counter shares will fall within a specific price range within the next 90 days based on its probability density function.
Based on a 90-day horizon, Cresco Labs has a beta of -0.0647, which indicates that the returns on holding Cresco Labs will decline considerably slower as the returns on the benchmark climb. While a bad market is expected to beat Cresco Labs, the company has a negative alpha, suggesting that it isn’t worth taking on the risk of owning this asset. Cresco Labs is significantly underperforming the NYSE Composite.
The risk profile for CRLBF Stock
Investing is always about getting the maximum return possible with the least volatility for investors. Investors maintaining a long position in Cresco Labs within a diversified portfolio receive the market risk premium.
Investors often use alpha and beta metrics to express risk and reward are central to the CAPM. It is essential to analyze Cresco Labs’ performance relative to the market by alpha, beta, and volatility measures.
Market comparison of CRLBF stock
Choosing the appropriate benchmark for Cresco Labs’ over-the-counter stock is essential for making informed investing decisions. Often, ignorant investors compare their holdings to the S&P 500 or Nasdaq. However, it is necessary to note that these benchmarks are not exhaustive and should only be applied to shares with a large capitalization and public offerings from major corporations.
CRLBF stock price may increase when the price of a specific benchmark falls in a bear market as purchasers believe the asset is inexpensive. Similarly, when the market is bearish, the converse is true; therefore, you must use the appropriate benchmark when you are bullish or bearish about Cresco Labs.