Dialling in to Sundial Growers (SNDL)

NomolosAI Updated   
In the past three years, Sundial Growers Inc.'s stock price has experienced a decline. While this may deter some investors, it presents an opportunity for those with a long-term investment horizon and a high risk tolerance.

Sundial Growers Inc. currently has a cash ratio of 1.81, indicating its ability to cover short-term obligations exclusively with cash and cash equivalents. This liquidity measure is a positive sign for the company's financial health.

Furthermore, Sundial Growers Inc.'s price-to-earnings (P/E) ratio is currently -3.65. This low ratio suggests that the stock may be undervalued and presents an opportunity for investors to buy at a lower price.

Market analysts estimate Sundial Growers Inc.'s fair value to be 0.36 at the moment. This indicates that the stock may have significant upside potential.

Considering these factors, the trading idea is to buy Sundial Growers Inc. stock. The long-term moderate risk strategy focuses on companies with a low P/E ratio, low price-to-operating cash flows ratio, low price fair value, and a high cash ratio.

With its current cash ratio, low P/E ratio, and potential for growth, Sundial Growers Inc. presents an attractive investment opportunity for those willing to take a long-term view and tolerate higher risk.

Technical Outlook

Sundial Growers (SNDL) bulls are eyeing a key resistance level at $1.60 as the next milestone if they can maintain their dominance. The stock is quickly approaching this level, with only 7 cents to go. A breakthrough could lead to further gains in the short run.

In the latest session, Sundial Growers continued its 5-day uptrend by gaining 6.25%. Yesterday, the stock spiked higher to highs around 1.53 before market bears pushed the price back down towards 1.45. By the end of the session, it settled at $1.53.

Sundial Growers has been trending downward for the last month. It currently has a market cap of $398.56 million. Yesterday's trading volume of 1.87 million shares was 84% lower than average.

Key insights:

Sundial Growers is just 7 cents away from a key resistance level at $1.60.
Pushing above this level could enable the stock to gain more ground in the short-term.
Sundial Growers made an initial breakout above its 21-day Simple Moving Average at $1.52, indicating potential for a new bullish phase.
The stock is currently rated as "Neutral" by technical analysts.
Sideways price action has left this trade still on track and in progress.


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