A January Rally For Top Marijuana Stocks
As January continues top marijuana stocks to buy have been gaining momentum in the market. In most cases, the best cannabis stocks to watch have seen double-digit percentage gains in the first couple of weeks of trading. In essence, this is garnering attention from more investors and increasing the notoriety the cannabis market is receiving at the current time. Many aspects are beginning to come together for the cannabis industry in the U.S. and on the global stage. For one, federal reform in America now has a much better chance of getting passed in a Democratic-led Senate. Generally, this could help the cannabis market grow more rapidly in the U.S. and bring in a new era for the marijuana industry. With increasing possibilities for growth, many top Canadian cannabis companies have begun to implement their strategy for the entry into the U.S cannabis market.
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Relatively speaking the Canadian cannabis market is much smaller than the U.S. market. For this reason, most top Canadian pot stocks need to gain a presence in the U.S. to help grow revenue in the future. 2020 began to show revenue growth for the best Canadian cannabis companies because of the growing derivatives market there. Now in 2021 with U.S. reform on the horizon America could be the center for substantial growth for the next few years. In fact, the U.S. legal cannabis market is predicted to grow to $35 billion by 2025 according to New Frontier Data.
The Canadian Cannabis Industry And Future Growth Potential
Beginning in January most Canadian cannabis stocks have seen substantial upward momentum in the market. As the cannabis rally continues investors have a chance to establish positions in one of the fastest-growing industries in modern times. As it stands global cannabis sales are expected to grow to $200 billion in the next decade. In essence, this gives top marijuana stocks both short-term and long-term appeal in the market. But picking the best cannabis stocks to buy for your portfolio can seem difficult with so many different choices.
As an investor, it’s always recommended that you do your own due diligence before starting any positions. In reality, this entails researching a company’s financials to better understand the position the company is in. Once an investor feels comfortable with a company’s financial standing, they can watch how the pot stock performs in the market to gain the best entry point for an investment. For the purpose of finding potential cannabis plays for future gains in the marijuana sector let’s take a closer look at 2 Canadian marijuana stocks with potential gains in the future.
Marijuana Stocks To Watch:
Aphria Inc. (NASDAQ: APHA)
HEXO Corp. (NASDAQ: HEXO)
Aphria Inc. is the largest Canadian cannabis company by revenue at the current moment. The company is a global leader in the cannabis industry and has cultivation, manufacturing, and distribution on a global scale. In today’s press release Aphria is announcing record revenue in Q2 of fiscal 2021. In detail, the company has a net revenue of $126.62 million an increase of 33% for the same period the prior year. Additionally, Aphria has adjusted EBITDA of $9.93 million marking the 7th consecutive quarter of increasing positive EBITDA.
The company is reporting a record gross revenue for adult-use cannabis of $56.87 million an increase of 149% from the same period in the prior year. Also, important Aphria completed its first shipment of EU-GMP shipment of medical cannabis to Germany, and Israel. In this quarter the company also closed the strategic acquisition of SW Brewing LLC establishing entry into the U.S. market.
APHA stock could be one of the biggest movers in the market today with this earnings report. Currently showing gains in premarket trading the stock is up to $10.22 from its previous close of $10. APHA stock has already gained 44.51% in trading for January. Once Aphria is able to establish sales in the U.S. its margins could skyrocket. With more gains on the horizon, APHA stock could be one of the best Canadian marijuana stocks to watch.
HEXO Corp. is an award-winning consumer packaging cannabis company that creates and distributes products to serve the global cannabis market. In reality by the end of 2020 Hexo began to see revenue growth in the Canadian market. Actually, in its Q1 fiscal 2021 financials, Hexo is reporting a record gross revenue of $41.3 million up 114% when comparing to the same period a year ago. In addition, Hexo currently has the largest market share in Quebec. Also, the company has the highest beverage sales that have increased by 54% from the prior year.
HEXO stock is up over 70% year-to-date making it one of the biggest gainers in the Canadian sector. Generally, Hexo is establishing a strong position in the Canadian cannabis market. Currently HEXO stock is up almost 6% in premarket trading on January 14th. In essence, the Canadian marijuana market expected to more than double in the next couple of years. And Hexo is well-positioned to benefit. Because of this Hexo stock is a top Canadian pot stock to watch for gains this week.