A Growth Era For The Cannabis Industry
The cannabis industry has entered a new era of growth in the U.S. and across the world. At the present time, marijuana stocks have seen a phenomenal year in the market in 2021. For example, recent data from Cannabis Ventures shows its global cannabis stock index has gained 71.4% in 2021. In reality, this shows how the sector is climbing higher in the market at a rapid pace. To compare in 2020 the index rose 5.2% for the year after having a volatile five years leading up to this decade. In essence, the next five years are looking like a period of growth and expansion for the cannabis market.
Currently, there are many opportunities for investors in the cannabis sector. Many top cannabis stocks have been delivering gains for shareholders and could have more potential for 2021. Finding the right pot stock to invest in requires some research into the sector and the different cannabis companies that are showing growth potential. Recently U.S. marijuana companies have been showing revenue strength going into 2021 and will begin reporting financial results in the coming weeks. In general, this could be a catalyst for cannabis stocks with better-than-expected earnings.
In fact, top marijuana companies have already been giving guidance that shows they are expecting to produce much more revenue gains for 2021. For the purpose of looking for cannabis stocks that are reporting earnings in the coming weeks, let’s take a deeper look at a few leading cannabis companies that could have an impact on the cannabis sector’s performance in the market.
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Marijuana Stocks To Watch:
- Innovative Industrial Properties, Inc. (NYSE: IIPR)
- Cronos Group Inc. (NASDAQ: CRON)
- The Valens Company Inc. (OTC: VLNCF)
Innovative Industrial Properties, Inc.
Innovative Industrial Properties, Inc. could be considered one of the best performing REITs in the sector. As one of the only REITs that currently focuses on sale lease buyback transactions, and long-term triple net leases for the licensed cannabis industry, it has become a strong force in the market. As of February IIP, has 67 properties across 17 states giving the company approximately 5.8 million rentable sq. ft. In fact, these properties are 100% leased with an average remaining lease term of 16.7 years. Recently IIP announced it would be reporting its Q4 and full-year 2020 results on February 24th after the market close.
In general, IIP has been performed well in 2020 generating total revenues of about $34.3 million in Q3 of 2020. Actually, this represents a 197% increase from Q3 of 2019. In addition, IIP is a rare gem in the cannabis sector that also provides a dividend to shareholders. With its most recent distribution for Q4 2020 of $1.17 per share of common stock. Currently, the dividend is $4.96 per share and at its ninth increase since the IPO completion in 2016.
IIPR stock is up 17.26% year-to-date with a high of $221.03 on February 16th. Closing last week’s trading at $214.57 on February 19th. Currently, analysts at TipRanks are giving IIPR stock a 12-month average price target of $228.25. in essence, this would be a 6.38% increase from current levels. Generally speaking, IIPR stock could be a good option for long-term investing in the cannabis industry.
Cronos Group Inc.
Cronos Group Inc. is an innovative global cannabinoid company with international production and distribution across five continents. In 2020 Cronos began showing a turnaround in its balance sheet that has the company performing better financially. In detail, Crono’s net revenue rose to $9.7 million in Q3 of 2020 an increase of $4.6 million from Q3 of 2019. This increase was driven by continued growth in the adult-use Canadian cannabis market. At the present time, Cronos continues to expand its CBD extract business to the U.S. Additionally Cronos is also supplying hemp-derived CBD distillates to the United Kingdom.
On February 26th Cronos is expected to announce Q4 and 2020 full-year financial results before the market opens. In essence, this could be a catalyst for Canadian marijuana stocks bearing some good results in the company’s standings. In 2020 the Canadian cannabis sector has rallied substantially and could continue to see upward momentum.
CRON stock is up 77.23% since the start of 2021 with a high of $15.83 on February 10th. Since then, CRON stock has fallen back down to $12.30 a share to close the week on February 19th. Many analysts see CRON stock as trading much higher than its target price. But recently the Canadian cannabis sector has been gaining substantial momentum in the market. With this in mind, CRON stock could be a good cannabis stock to watch this week as it reports its financials.
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The Valens Company Inc.
The Valens Company Inc. is a leading manufacturer of cannabis derivative products and provides proprietary cannabis processing services across five core technologies. Additionally, the company offers best-in-class product development and manufacturing of cannabis consumer packaged goods. The Valens Company’s high-quality products have formulations for all segments of the cannabis market and are available across numerous product formats. In general, this including oils, vapes, concentrates, edibles, topicals, and pre-rolls, with a focus on product development.
On February 24th The Valens Company is expecting to announce its Q4 and fiscal 2020 financial results after the markets close. In reality, this could have a major impact on how many cannabis stocks trade next week especially those in the CBD and extraction sectors. Recently these types of cannabis stocks have experienced more momentum in 2021.
VLNCF stock saw substantial gains in January achieving a recent high of $3.12 on January 16th. Since that time CRON stock closed the last week at $1.46 on February 19th. Recently analysts at MarketBeat are giving CRON stock a consensus price target of $3.90. In essence, this would be a 167.1% gain from current levels. For this reason, VLNCF stock is a top marijuana stock to watch during next week’s trading.