Cannabis Stocks In 2021
Are you watching top marijuana stocks looking for the best opportunity to invest? At the present time, many cannabis stocks are beginning to show some upward momentum in trading. Until June the best pot stocks to invest in saw significant declines in the market. But with a shift in momentum last month July has continued to add value to the cannabis sector. Currently, there is a major push for cannabis reform and legalization in Congress.
As more lawmakers begin to stand behind a need to change federal cannabis policy investors are finding the top marijuana stocks to invest in for 2021. At the present time, many cannabis stocks are still trading closer to their lower stock prices this year. For the most part, many of the top pot stocks reached their 2021 highs in February and have since been consolidating at lower levels.
This could be seen as a loading zone for marijuana stocks with potential federal cannabis reform on the horizon. In the US there are well-positioned cannabis companies that could see significant growth as new markets begin presenting themselves. As of now, medical marijuana is legal in 37 states this includes 18 that allow adult use. Many other states have passed cannabis decriminalization and reform laws and things are looking positive for the growing industry.
Possible Catalysts For Top Pot Stocks in 2021
All things considered; cannabis companies have been delivering strong earnings in the first quarter of 2021. Although the market has not reacted to this revenue growth it shows which companies could continue to perform at a higher level. As the cannabis market continues to grow these companies could produce long-term revenue for investors.
As of now, the cannabis industry is expected to more than double in revenue in the next five years. According to Statista US sales of legal recreational cannabis are expected to reach an estimated $42 billion by 2026. For investors, marijuana stocks represent a rapidly growing industry that could throw off significant returns in the coming years. But before investing in marijuana stocks there are a few important factors to consider.
First, the cannabis sector is known as one of the more volatile areas of the market. This makes it important for investors to do their due diligence on a company before investing. Studying how a stock moves in the market and researching a company’s financials can help you establish the best positions for your investments. With this in mind, let’s take a closer look at 2 top marijuana stocks for your watchlist this week.
Marijuana Stocks To Watch:
Columbia Care Inc.
In 2021 there are cannabis companies that are positioning themselves as New York legalizes cannabis. Essentially, Columbia Care Inc. could be one of the best-positioned cannabis companies to grow rapidly in the state. With a recent acquisition of a 34-acre Long Island cultivation site, the company has one of the largest cannabis footprints to service the East Coast market. As of now, the company operates in 18 US markets and operates 115 facilities including 87 dispensaries and 28 cultivation and manufacturing facilities. In July the company announced the launch of West Virginia market operations. Columbia Care expects to begin cultivation operations in the state at its Falling Waters facility.
In the First quarter of 2021, Columbia Care announced a record combined revenue of $92.5 million an increase of 220% year over year. As a result, the company produced a record combined adjusted gross profit of $37.7 million an increase of 316% from the prior year. Also important, the company reiterated its 2021 combined revenue guidance of $500-$530 million and adjusted EBITDA of $95-$105 million. In June Columbia Care completed the acquisition of Green Leaf Medical establishing a market-leading position in the mid-Atlantic. The company is expecting to report its second-quarter 2021 results on August 12th before the open.
CCHWF stock closed at $5.25 down 13.22% year to date. In February CCHWF stock reached a high of $7.89 and has gained 103.09% in its 1- year performance. According to analysts at Tip Ranks CCHWF stock has a 12-month average price target of $12.09 per share. This forecast would represent an increase of 130.29% from its last trading price. For this reason, CCHWF could be a top marijuana stock to add to your list in July.
Another Leading cannabis company that could be flying under the radar is TerrAscend Corp. The company is a leading US cannabis operator with a presence in Pennsylvania, New Jersey, and California. Additionally, TerraScend has licensed cultivation and processing facilities in Maryland and Canada. TerrAscend operates the Apothecarium a dispensary brand that has won previous awards as well as best in class cultivation.
In its first-quarter 2021 financials the company delivered net sales of $53.4 million and adjusted EBITDA of $22.6 million As a result, TerraScend raised its full-year 2021 guidance for net sales to exceed $300 million and an adjusted EBITDA to be more than $128 million. Last month the company launched a portfolio of Kind Tree Branded products in Maryland. Specifically, the Maryland facility was already producing 15 strains of flower under the Kind Tree brand and now will add vapes and half gran pre-rolls to the lineup.
TRSSF stock closed at $10.60 up 5.47% year to date. In February TRSSF stock reached a high of $16.25 and has gained 360.87% in its 1-year performance. According to analysts at Market Beat TRSSF stock has a consensus price target of $18.32 per share. In essence, this would represent an increase of 72.8% from its last trading price. With this in mind, TRSSF stock could be one of the best cannabis stocks to invest in for 2021.