These 3 Marijuana Stocks Should Be On Your May Watchlist
Some marijuana stock investors are still feeling the uncertainty of seeing more sustained momentum in the sector. As many can see the last several months of trading for some of the top marijuana stocks to watch have dropped significantly. Even with news of potential federal reform and more states going legal, it has not moved the needle for most cannabis companies. Currently, companies are starting to release earnings and some are showing positive results.
However, as some cannabis companies show good earnings news like this hasn’t resonated well with other marijuana stocks the way it used to. This current drop in trading for some goes way beyond volatility. Many events that have occurred in the last year have all played a factor in both operational and market performance. Yet some investors see what’s happening with the cannabis sector and have turned it into a buying and hold type of game. With the sector continuously trades down finding the best marijuana stocks to invest in is now more affordable to do. For instance some of the companies trade above 5$ so technically they are not considered marijuana penny stocks.
For instance, a company like GrowGeneration Corp. (NASDAQ:GRWG) who once was trading between $50-$60 back in February is now trading between $40-$35. With a 45 percent drop in from the first week and half of February, this company like many others is now at a better buying opportunity than before. The main concern is when will marijuana stocks start to see a better recovery that can reach a level that makes investors solid returns. With all that’s going on in the overall stock market, it seems to be a game of patience. With more time left to find cannabis stocks to buy the companies below may have some value to offer.
Marijuana Stocks To Watch This Month
- MariMed Inc. (OTC:MRMD)
- Neptune Wellness Solutions Inc. (NASDAQ:NEPT)
- Hydrofarm Holdings Group, Inc.(NASDAQ:HYFM)
MariMed Inc. is a multi-state cannabis operator, is dedicated to improving the health and wellness of people through the use of cannabis products. In the company’s most recent news MariMed announced its Betty’s Eddies brand is now available at licensed retailers in Maine. Currently, Maine is now the 5th state to carry this award-winning edibles brand.
“Betty’s Eddies is one of the most popular cannabis edible brands in the U.S. and MariMed remains committed to product innovation to meet evolving consumer preferences,” said Bob Fireman, CEO of MariMed. “Today, consumers prefer products thoughtfully made with natural ingredients – ingredients they can pronounce and are familiar with. MariMed is one of the few cannabis companies currently providing products that meet those needs in the form of a delicious, vegan edible. This is another step in our strategy to expand MariMed brands into markets that offer unique opportunities to generate revenues and better serve our customers.”
MRMD stock has been one of the few marijuana stocks that even while the sector is down has held a decent market position. In the last 4 weeks of trading starting from mid-April MRMD stock has started to pull back in the market. As of the close on May 13th MRMD stock is up 20 percent from the 20th of April. As trading continues in May shareholders hope to see this marijuana stock continue to climb.
Neptune Wellness Solutions Inc.
Neptune Wellness Solutions Inc. is a diversified and fully integrated health and wellness company. The company’s focus is on natural, plant-based, sustainable, and purpose-driven lifestyle brands. This past month the company provided its business and strategy update.
The company has completed its transition to a fully integrated consumer packaged goods business. As well Neptune has also announced the launch of plant-based omega 3-6-9 products. The company has set a goal to build out existing brands through an organic strategy. All of which are contributions from its product development and research and development teams.
“We have made tremendous progress transforming a 22-year-old company in less than two years. We are in a unique time in history, and we believe that the opportunities ahead of us are immense,” said Michael Cammarata, President and Chief Executive Officer of Neptune.
Towards the back half of April NEPT stock started to shows signs of upward trading. In the last 2 weeks of April right before May NEPT stock was up 20 percent before yet again dropping back down. As of May 13th, NEPT stock is still down. But with more companies releasing earings maybe this will resonate well for NEPT stock and other marijuana stocks.
Hydrofarm Holdings Group, Inc.
For those who don’t know about Hydrofarm Holdings Group, Inc. the company is an independent distributor and manufacturer of hydroponics equipment. Earlier this week the company released its first-quarter 2021 results. During this time the company made net sales increased 66.5% to $111.4 million compared to $66.9 million. As well Hydrofarm’s gross profit increased 100.8% to $23.2 million. This is in comparison to $11.6 million. Next, the company managed to achieve an Adjusted EBITDA to an increase of $9.9 million compared to $1.6 million.
Bill Toler, Chairman and Chief Executive Officer of Hydrofarm, said, “We’re pleased to report strong results to start 2021, which included our third straight quarter of organic sales growth of approximately 60% or more and a new record quarter of Adjusted EBITDA at $9.9 million, as we continue to benefit from broad growth across our product lines, geographies, and brand categories. Our impressive results continue to be driven by demand for our differentiated branded product offerings aided by strong tailwinds from a large and rapidly growing controlled environmental agriculture end market.”
At the end of April, HYFM stock started to rise back up. This rise in trading happened when most marijuana stocks were still down at this time. This jump in trading lasted until the first week of May. From April 27th to May 5th HYFM stock saw an 18 percent increase in trading. Yet after this time, the company was not able to keep its climb going. For now, shareholders will have to wait and see what unfolds for the company. Furthermore, it’s possible to see better trading before the end of the month.
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