Do You Have These Top Marijuana Stocks On Your Watchlist In May?
In recent trading, many marijuana stocks have started to build more market momentum. This current upward push for most cannabis stocks has been long overdue after coming off a 3-month downtrend. Yet during this downtrend, all was not lost for the cannabis industry and investors. For one when cannabis stocks were trading at lower share prices, this created a big buying opportunity. Next was many leading cannabis companies were able to further expand and grow their business.
For instance, many top marijuana companies have grown through mergers and acquisitions. This has made companies like Truelieve Cannabis who recently acquired Harvest Health & Recreation Inc. one of the largest MSO companies in the space. More recently many top marijuana stocks are starting to release their earnings reports. Most reports have come away with positive results which have added some positive sentiment to the sector. So far this positive sentiment has helped create a boost in trading.
Now investors and shareholders are still a bit skeptical of how long this rise will continue. This is due to a large amount of uncertainty that was created over the last 3 months. There is no official way to know how long this upward momentum will last. However, as the cannabis sector continues to rise shareholders will be looking to take profit before the next drop in trading.
Right before the start of May analysts felt this month would lead to a better market performance for most marijuana stocks. Yet during the first week of May, cannabis stocks had a little a slow start and did not rise at first. During this time a bit more volatility entered the sector. As of now, marijuana stocks are on the move and investors are keeping watch to see what will unfold for the company.
Marijuana Stocks To Watch This Month
Cresco Labs Inc.
Cresco Labs Inc. for those who don’t know is a vertically integrated multistate operator. As well the company is known as the number one U.S. wholesaler of branded cannabis products. Over the last 2 weeks, the company has released various pieces of news. Back at the start of May, the company announced the expiration of the HSR Act waiting period for the proposed acquisition of Cultivate Licensing LLC and BL Real Estate LLC.
Next on May 4th Cresco announced the news in regards to reporting its Q1 2021 financial earnings. AS well as the conversion to U.S. GAAP accounting. Like many other cannabis stocks, the last 8-12 weeks have been a tough time in the market. Right after the first week and a half of February CRLBF stock started to fall in the market. During this drop, the company tried to recover but has trouble sustaining a better market level.
It was not until mid-April when CRLBF stock started to see a longer period of better trading. On April 20th CLRBF started its initial rise in trading. Although CLRBF stock is still down some shareholders feel the rest of the month may bring some more momentum for CRLBF stock.
Acreage Holdings, Inc.
Acreage Holdings, Inc. is an MSO cannabis company that works with cannabis cultivation and retailing facilities in the U.S. In the companies most recent news Acreage has released its Q1 financial earnings report. During this time the company has reported a gross margin was 53.7%. This made for an increase of 12.6 percentage points in comparison to the same period in 2020. Another highlight to mention is the Adjusted EBITDA in the first quarter of 2021. Which came to be $1.6 million compared to a loss of $12.3 million in the same period in 2020. This made the first quarter of positive adjusted EBITDA* for the company. This also validates management’s refocused strategic plan.
“I am very pleased with our financial performance in the first quarter as we reported positive Adjusted EBITDA for the first time in our history,” said Peter Caldini, Chief Executive Officer of Acreage. “Additionally, our revenue growth accelerated to 58% year over year, and our gross margin of 53.7% once again set a company record. This all validates our refocused strategy, and we are clear on our path to improved performance.”
In the last month of trading ACRHF stock has unfortunately seen more downs than ups. Like many other cannabis stocks since mid-February, it’s been tough to reach a better market level for many marijuana stocks. During March that’s when ACRHF stock saw its biggest drop in the market. Even when most cannabis stocks started to drop after February 10th ACRHF stock displayed a bit more volatility. As of now, the company has still been dealing with a lower market position. However, as of late a slight amount of momentum has led ACRHF stock to slowly rise. With another 2 weeks left in May, shareholders hope to see a bigger upward push in trading.