Finding The Right Cannabis Investment
There are many different ways to invest in the cannabis industry at the current time. As it stands some investors have chosen the Canadian cannabis stocks and others prefer the US companies. Some prefer to invest in the larger more established companies and other investors like the smaller cap companies with lower stock prices. Whatever your preference top pot stocks have been performing well since after the start of the pandemic.
With the best marijuana stocks to buy continuing to show market volatility in 2021, more investors are taking advantage of this recent downturn in the cannabis sector. This week top marijuana stocks began to show some upward momentum in the market. This could be a sign of a turnaround in the sector and leading cannabis stocks could start gaining market value. In 2021 Canadian cannabis stocks had a phenomenal start gaining the most market value in the first two months of the year.
Since February 10th the top cannabis stocks to invest in have declined to market levels held in December of 2020. With this being the case these top pot stocks could hold future potential gains in 2021. Another area that seems to be good for investors looking for growth in the American cannabis market is leading US marijuana stocks to buy. In general, the US cannabis industry is expected to see the most growth in the next five years. According to a recent BDSA report, US cannabis sales are expected to reach $41.3 billion by 2026.
Cannabis Stocks In 2021 What To Know About The Market
Another area of cannabis stocks that has seen substantial upward momentum in 2021 is marijuana penny stocks. By definition, penny stocks are any securities trading under the $5 price point. At the beginning of this year, this part of the cannabis sector saw the most upside in the market.
But one important factor to take into account when investing in this area is market volatility. Marijuana penny stocks are known for being a high-risk high-reward area of the market. Before making any investments always do your due diligence and research a company thoroughly before starting a position.
For the purpose of finding top marijuana stocks from 3 different areas of the market, we can take a deeper look into some leading companies. The current market value for the cannabis sector could produce some upside in the future. As top marijuana stocks close the month of April these could be the best cannabis stocks to add to your watchlist for May.
- 2 Marijuana Stocks To Watch As A New Month Of Trading Is Quickly Approaching
- These 2 Marijuana Stocks Are Ready To Keep Climbing As The Sector Continues To Recover
Marijuana Stocks To Watch:
- Canopy Growth Corporation (NASDAQ: CGC)
- Cresco Labs Inc. (OTC: CRLBF)
- MedMen Enterprises Inc. (OTC: MMNFF)
Canopy Growth Corporation
Canopy Growth Corporation is considered to be one of the largest Canadian cannabis companies with a large variety of products for both the medicinal and recreational cannabis markets globally. Essentially Canopy received a large investment and partnership with Constellation Brands, Inc. (NYSE: STZ) that gave the company extra leverage in the industry. In its most recent earnings report Canopy saw Q1 fiscal 2021 record net revenue of $153 million. An important factor in the future of the company is that it expects to achieve profitability by 2022.
Canopy has been making significant expansions in April. The company entered into an agreement to acquire Supreme Cannabis Company, Inc. (OTC: SPRWF) this month. The deal will give Canopy a stronger brand portfolio with the addition of 7ACRES. Last week Canopy also signed a U.S. distribution agreement with Southern Glazer’s Wine & Spirits for its CBD beverage portfolio. Specifically, this partnership will support the recent launch of Quatreau Canopy’s first line of CBD-infused beverages sold in the U.S.
CGC stock has been seeing a decline in market value for the month of April. Down 12.33% in the last month, the stock is up 14.29% year to date. According to analysts Tip Ranks, CGC stock has a 12-month average price target of $33.80 per share. This would be a 23.45% gain from current levels. With this in mind, CGC stock is a top Canadian cannabis stock to watch in May.
Cresco Labs Inc.
Cresco Labs Inc. is a U.S. cannabis multi-state operator with a consumer-packaged approach to cannabis in America. Currently, the company has a large share of the market in the sales of branded cannabis products in the states. With a presence of 24 dispensaries in 9 states and 15 production facilities in the US, the company has grown rapidly. A few months ago, the company closed the acquisition of Verdant Creations adding four dispensaries in Ohio to its lineup. In particular, the acquisition provides Cresco a license for five dispensaries in the state. Additionally, the company also closed the acquisition of Bluma Wellness and is expanding its brand into the Florida market.
In March Cresco announced its Q4 and full-year 2020 results with record revenue of $476.3 million. As a result, the company saw an increase of 271% year over year with a record full-year adjusted EBITDA of $116 million. Cresco continues to expand its branded edibles portfolio and is launching new products into the market in Illinois.
CRLBF stock is up 24.58% year to date and closed at $12.25 on April 29th. Essentially, with a high back in February of $17.49, the stock could see some upside if cannabis stocks begin to rebound. According to analysts at Market Beat CRLBF stock has a consensus price target of $19.21 per share. This would be gains of 56.3% from current trading levels. For this reason, CRLBF could e be a top US marijuana stock to buy in 2021.
MedMen Enterprises Inc.
MedMen Enterprises Inc. is a North American premium cannabis retailer with its presence in California, Nevada, Illinois, Arizona, Massachusetts, and Florida. The company offers a selection of high-quality products, including MedMen-owned brands MedMen Red and LuxLyte. With its distribution through its premium retail stores, proprietary delivery service, as well as curbside and in-store pick up the company continues growing. Today On April 29th, the company announced its first Miami location in the heart of South Beach on Collins Ave. After gaining substantial market value in January and February MMNFF stock has seen a steep decline in market value.
MMNFF stock closed on April 29th at $0.3478 with a 2.29% gain for the day. With a high of $1.47 in February, the stock could have some potential gains with its expansions in recent months. According to analysts at Stock Invest MMNFF stock is considered a high-risk stock due to its light trading volume. Currently, the stock has been showing substantial market volatility since February. But with US cannabis growing rapidly MMNFF stock could be a marijuana penny stock to add to your watchlist.