Investing in Canadian Marijuana Stocks In 2021
In 2021 top Canadian marijuana stocks have seen the most volatility in the market. After seeing upward momentum in January and February leading Canadian cannabis stocks have since suffered substantial losses in market value. As it stands many cannabis investors have now begun putting their money into top U.S. cannabis companies. As the government continues to be stagnant on cannabis legalization the hopes of entering the U.S. cannabis market are fading in 2021.
Although the SAFE Banking Act recently passed in the House and is heading to the Senate this will most likely only help American cannabis companies prosper. At the present time, it seems Canadian companies might have to continue waiting for cannabis legalization. Currently, this is giving U.S. cannabis companies time to expand in the growing American market. Another area of the market that is growing rapidly is the pharmaceutical segment of the cannabis industry.
In 2021 a top producer of medicinal cannabis GW Pharmaceuticals plc (NASDAQ: GWPH) was acquired by leading pharmaceutical giant Jazz Pharmaceuticals plc (NASDAQ: JAZZ). Currently, GW Pharm produces a cannabis-based drug named Epidyolex. Essentially the drug is an FDA-approved drug used for the treatment of seizures associated with TCS. In the next five years, this area of the market could see substantial growth.
Is Now The Time To Buy Top Marijuana Stocks In 2021?
Back in February top marijuana stocks to invest in gave traders a glimpse of where the cannabis sector can go with American cannabis legalization. And although Canadian companies are on the sideline for now many have begun executing strategies for entry into the U.S. market. For new investors, this recent drop in market value in the sector could be an opportunity to start a position in top pot stocks.
Finding the right cannabis stocks to buy takes thorough due diligence from the investor. Primarily understanding a company’s financial health and observing the stock’s performance in the market are important factors in making a profitable investment. At the present time, many analysts are predicting the cannabis sector should see some gains in 2021.
With this in mind researching some of the options available for a cannabis play could be beneficial for an investment portfolio. With the intention of researching some of the best cannabis stocks to invest in, we can look deeper into some industry leaders. As leaders in the cannabis market, these companies could continue to produce gains for investors. With this in mind let’s take a look at 2 top marijuana stocks to watch for Robinhood investors.
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- Canadian Cannabis Stocks To Watch Before Next Week
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Marijuana Stocks To Watch:
- AbbVie Inc. (NYSE: ABBV)
- Aphria Inc. (NASDAQ: APHA)
AbbVie Inc.
AbbVie Inc. is a pharmaceutical giant with a market cap of $185.67 billion. Consequently, AbbVie has a popular drug on the market containing THC called Marinol. Primarily the company provides some of the best-selling chronic disease medicines in the pharmaceutical market. Additionally, for the long-term investor, the company provides an annual dividend payment of $5.20 per share with a dividend yield of 4.93%. In its latest earnings report, Abbvie saw earnings rise 32.1% to $2.92 per share in the fourth quarter. Furthermore, sales increased 59.2% to $13.86 billion. As a result, the company beat expectations in both measures for Q4. In 2020, total sales increased by 37.6% to $45.78 billion.
Currently, AbbVie is one of the most traded pharmaceutical companies on the stock market. As far as volume is concerned the company ranks second to Pfizer Inc. (NYSE: PFE) and is the fourth largest company as far as total market value. Generally speaking, AbbVie is a way to invest in the medical cannabis market and also the broader pharmaceutical sector. On April 22nd AbbVie received approval from Health Canada for Humira. In detail, Humira is a drug used for the treatment of Pediatric Patients with active Ulcerative Colitis.
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ABBV Stock Performance
ABBV stock is up 2.71% year to date with a high of $133.41 in January. Closing on April 22nd at $110.05 the stock is up 3.92% in the last 30 days. ABBV stock has given investors a 5-year total return of 124.29%. As a long-term investment ABBV stock could be a top medicinal cannabis stock. According to analysts at Tip Ranks ABBV stock has a 12-month average price forecast of $127.00 per share. In essence, this would be a 15.40% increase from its current level. For this reason, ABBV stock is a top medical marijuana stock to add to your watchlist before next week.
Aphria Inc.
As a leader in the Canadian sector, Aphria Inc. is a global cannabis consumer packaged goods company and one of the largest cannabis companies in the industry. After a merger with Tilray, Inc. (NASDAQ: TLRY) is complete the two will combine to become the largest cannabis revenue producer worldwide. Unfortunately, in its latest Q3 fiscal 2021 earnings Aphria missed analyst’s estimates with an adjusted loss per share of C$0.15. Actually, this loss was much larger than the analysts estimated C$0.05 per share expected loss. 
Tilray is holding its vote on April 30th to solidify the merger. On 4/20 Apria CEO Irwin Simon said on CNBC’s “Squawk on the Street”, “We will get the vote done, I’m very confident of that. As I’ve said before, the merger of the two companies will be great for both sets of shareholders. And when the legalization of cannabis does happen, the new Tilray will be ready to make a major entry into the U.S. markets.” Aphria closed the acquisition of SweetWater Brewing Company an independent U.S. craft brewer that will play a major role in the company’s entry into the U.S. cannabis market. Currently, Aphria is preparing to establish its footprint in the U.S. and could see growth from medicinal cannabis exports to its partners in Germany.
APHA Stock Performance
APHA stock is up 97.40% year to date with a high of $32.29 in February. Closing on April 22nd at $13.66 the stock is down 27.19% in the last 30 days. According to analysts at CNN Business APHA stock has a 12-month median price forecast of $14.53 per share. This would be a 6.46% gain from current levels. With the Canadian cannabis sector feeling downward pressure APHA stock could see some upside from its recent market value. With this in mind, APHA stock is a top Canadian cannabis stock to add to your watchlist in April.
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