Both General Motors and Sundial Growers stocks share similarities. First of all, GM or General Motors was the world’s leading corporation in the industry before 2008, but did you know that it also turned bankrupt that year? Had it not been for the resuscitation by the US government, it wouldn’t have survived the 2008 market crash. Even though it never regained the former prominence, but as you can see in GM Stock Forecast 2023, it has grown 80% over the last decade.
Sundial Growers, on the other hand, is a Canadian company that sells cannabis related products. Back in 2019, at the time of its launch, the cannabis market was supposed to grow in the near future. But, right from the beginning the stock neither saw much investor faith nor interest. From its peak price of $130, it has now dropped down to below $2 where it is trading near its 52 week low.
So, when faced with the choice, which of the two should you put your money on? Let’s find out in this article.
Should You Invest in GM Stock in 2023?
Ever since hitting an almost $30 low in July 2022, the GM stock has shown a healthy volatility. Without going as low again, it had been constantly striking the $42 resistance, which it finally overcame just recently and went out to achieve a $43 high, which is the nearest it has gotten to its $46.74 high in a while. But now that it’s trading near $40, it’s a great price to start accumulating the stock systematically. The stock has strong supports at $38 and $35. And if it reaches those levels, we strongly suggest that you buy it.
Moreover, General Motors has also been in the news recently, which has had a positive impact on the stock. The company showed 28.4% Y-O-Y growth in its revenue for the last quarter of 2022. This is a good sign showing a positive future outlook. That’s why, even researchers at Trader’s Union project that the stock would be trading around$51.87 by the middle of this year and $69.16by the end of this year.
Should You Invest in Sundial Traders in 2023?
As we said earlier, Sundial Growers or SNDL is trading around its 52 week low right now. And, as you can see from our source, to this date, it has fallen almost 75% from its 52 week high and more than 98% from its all-time high.
The stock has faced that onslaught mainly because of price erosion following an oversupplied cannabis market. On top of it, it has also seen disappointments in the US when it comes to legalization.
That being said, during the meme stock craze of 2020 and 2021, it was very popular among investors on Reddit and on Robinhood platform, which helped it bounce back from a low of $1.4340 and generate enough cash to not just stay afloat but to reach a local peak that was well above $20. That’s why, as of now, it has CA$278 million ($206 million) in cash with no debts, and thus is expected to grow through acquisition of other debt ridden companies in the market. The researchers at Trader’s Union have projected its price to be $2.35 by the middle of this year and $3.13 by the year end.
Sundial Growers vs. General Motors: Which One to Buy in 2023?
According to the researchers at Trader’s Union, GM motors is supposed to rise by almost 75% whereas SNDL is supposed to rise by almost 57%. So, GM is a better option, since it offers better profit and has solid fundamentals. However, if you are looking for a short term returns, SNDL might be better option, since it has given huge returns during a short period of time in the past. Although, to make the most out of that, we suggest that you keep track of the news, especially on Reddit, since that’s where the stock became popular the first time.
Traders Union article
Article Submitted By Community Writer
