Many cannabis stocks may have made a bit of a comeback this year but the Sundial Growers (NASDAQ: SNDL) stock has been particularly volatile.
The stock became a target of retail investors from the Reddit community WallStreetBets and at one point; it had clocked gains of as much as 400% earlier on this year. That being said, the rally in the stock has cooled down considerably in recent times and over the past three months, it has lost 32%.
In this regard, it is necessary for investors to keep in mind that Sundial Growers suffers from a major problem and that is its failure to boost its revenues despite the overall market growing at a fast clip. At this point in time, the stock appears a bit overbought and the numbers reflect that as well. The enterprise value of Sundial Growers has a sales multiple of as much as 22 at this point in time. Investors need to be cautious with regards to Sundial.