Top Canadian Cannabis Stocks On The Nasdaq in 2021
In the first week of August, the best marijuana stocks to buy began to show some upward momentum in the market. With several months of declines in 2021 top cannabis stocks began moving on better-than-expected earnings from Canadian cannabis companies. Now in August, many more leading cannabis companies are releasing financials, and this could continue fueling a rise in the cannabis sector. In 2021 top Canadian pot stocks saw the largest gains in the first quarter of 2021.
After February 10th most Canadian cannabis stocks also experienced the steepest declines in the market. In 2021 most Canadian cannabis companies are still not profitable after almost 3 years of full legalization in the country. In many instances, these Canadian cannabis companies will need access to the American cannabis market to produce better margins. Most have already established some form of entry into the US market and are waiting for the federal government to end federal cannabis prohibition.
In July Senate Majority Leader Chuck Schumer released a draft of cannabis legislation that would legalize cannabis on the federal level. The Cannabis Administration and Opportunity Act was released by Schumer to gain support for the legislation before introducing it for a vote. In the event, this marijuana legislation passes it could be open the doors for Canadian cannabis companies to enter the US cannabis industry.
Canadian Cannabis Industry In 2021
Although most Canadian marijuana companies are not producing a profit the Canadian cannabis market continues to grow. In May Canadian cannabis sales increased by 68.1% to C$313.3 million. As the Canadian cannabis industry continues to grow these lower-level stock prices could be an opportunity to find top marijuana stocks to buy for possible gains in the market.
Before investing it’s important to do your own due diligence in a company. Researching a company’s financials and studying how the stock performs in the market can help you establish the best returns on your investments.
From current trading levels, top Canadian cannabis stocks could see significant upside for 2021. With the cannabis market predicted to more than double in sales in the next five years this could be a good time to find the best pot stock investments. With this in mind let’s look at the top Canadian cannabis stocks to add to your watchlist for next week.
The Best Canadian Marijuana Stocks To Watch In August
- Canopy Growth Corporation (NASDAQ:CGC)
- Tilray, Inc. (NASDAQ:TLRY)
- Sundial Growers Inc. (NASDAQ:SNDL)
Canopy Growth Corporation
Canopy Growth is one of the largest producers and distributors of cannabis and cannabis-derived products in the Canadian market. Primarily, the company sells cannabis and hemp-derived products in Canada, the US, and Germany. Currently, the company has made a US distribution agreement with Southern Glazers Wine & Spirits for a CBD beverage portfolio. In the Canadian market, Canopy increased its brand portfolio with the acquisition of one of the countries premium cannabis brands The Supreme Cannabis Company, Inc.
On August 6th Canopy released its first-quarter fiscal 2022 financial results with 23% growth in Q1 2022 compared to Q1 2021. The company is reporting net revenue of $136 million in Q1 2022 driven by strong double-digit growth across Canada. In addition, Canopy reported total net cannabis revenue of $93 million in Q1 2022 an increase of 17% year over year. Specifically, other consumer products revenue was $43 million. Net earnings in Q1 2022 are $390 million. Of which, $518 million was driven by other income totaling $581 million during Q1 2022. The company saw an adjusted EBITDA loss in Q1 2022 of $64 million an improvement from Q1 2021.
CGC stock closed on August 6th at $19.15 down 22.28% year to date. In the past 6 months, GCG stock is down 55.39% with a 52-week price range of $13.83-$56.50. According to analysts at CNN Business CGC stock has a 12-month median price target of $23.85 per share. This would represent an increase of 24.50% from its last trading price of $19.16.
Tilray, Inc. is a global cannabis packaged goods company with operations in Canada, the US, Europe, Australia, and Latin America. Recently, the company underwent one of the biggest mergers in the Canadian market. This has established Tilray as one of the largest revenues producing cannabis companies in the world. Tilray is positioning itself to enter the US market and is also expanding its international presence.
Recently, Tilray completed its first harvest and delivery of medical cannabis grown in Germany. Additionally, the company has established CBD products and infused beverages. These products could be large revenue producers across the Canadian and American markets. In July, Tilray reported its 2021 fiscal year and Q4 results with net revenue up 27% year over year to $513 million. The company produced a net income of $33.6 million and adjusted EBITDA of $12.3 million. Tilray increased its revenue by 55% in Q4 and holds the #1 share in Canada.
TLRY stock closed at $14.42 on August 6th up 74.58% year to date. The stock has a 52-week price range of $4.41-$67.00 and has declined by 43.93% in the last six months. According to analysts at Tip Ranks TLRY stock has a 12-month average price target of $19.68 per share. This forecast represents an upside of 36.48% from its last trading price of $14.42.
Sundial Growers Inc.
Sundial Growers Inc. engages in the production and marketing of cannabis products for the adult-use market in Canada. The company produces and distributes inhalable products, such as flowers, pre-rolls, and vapes. In the first quarter of 2021 Sundial surprised investors with its first positive earnings report in the company’s history. In detail, the company delivered first-quarter 2021 earnings of C$1.7 million compared to a loss of C$32.7 million sequentially. Additionally, the company reported a first-quarter positive adjusted EBITDA of C$3.3 million compared to a loss of C$5.6 million sequentially.
At the present time, Sundial has two main segments they currently are achieving profits from cannabis operations and the other company investments. Specifically, the company realized C$2.8 million in interest and fee revenue from long-term loans to third parties. Currently, Sundial has C$12.9 million in realized and unrealized gains from investments in securities. Recently Sundial has been getting renewed interest from Reddit and Robinhood investors going into August. The company is expected to release its second-quarter 2021 earnings on August 12th after the market closes.
SNDL stock closed on August 6th at $0.8046 up 69.93% year to date. Currently, the stock has declined by 28.80% in the last six months and has a 52-week price range of $0.1380-$3.96. According to analysts at Market Beat SNDL stock has a consensus price target of $0.73 per share. This would be a decline of 8.9% from its last trading price of $0.8046. But due to the attention from Robinhood and Reddit investors SNDL stock could surprise analysts with future momentum.