Growth Potential For The Cannabis Industry
At the present time, the cannabis industry has been showing growth potential for the next few years. As the US continues to grow rapidly with new states like New York, New Mexico, and Virginia legalizing cannabis, many companies are waiting for cannabis federal reform. In Canada, the markets have grown through the pandemic but companies there have been establishing strategies for entry into the US market.
Currently in Canada, one of the largest revenue-producing cannabis companies is forming with the merger of Tilray, Inc. (NASDAQ: TLRY) and Aphria Inc. Realistically, Canadian cannabis stocks have seen the most market volatility in 2021. After a first-quarter rally that set new highs for most leading marijuana companies, the cannabis sector has seen a substantial decline in market value. Also, in February Canadian retail cannabis sales grew by 74% and Health Canada added 8 licenses for a total of 665 currently.
As it stands Canadian cannabis stocks to invest in could be ready for a rebound in the market. Finding the best pot stocks for your investment style and portfolio needs requires some due diligence from investors. Undoubtedly researching these companies and watching their performance in the market can help you make better investments.
What To Know About Marijuana Stocks To Buy
One thing to know about leading marijuana stocks is that they are traditionally known for substantial market volatility. Because of this, it’s important to study these stocks thoroughly to try and get the best entry into a position. As top Canadian cannabis stocks continue trading near lower levels seen this year, they could present an opportunity for gains for new investors.
In fact, leading Canadian companies like Canopy Growth Corporation (NASDAQ: CGC) are only up 4.14% year to date trading at $25.21 on May 5th. In the last 30 days, CGC stock has declined by 19.96%. For some investors, Canadian cannabis companies could hold some value for both the short-term and long-term investors. With future prospects in the US markets, these companies could see significant growth in the coming years.
To find the best Canadian marijuana stocks to watch in 2021 we have to research leading companies thoroughly before starting a position. With the intention of taking a further look into some options, we can research some companies. At the present time, these cannabis stocks have been taking significant market losses and could hold future value for shareholders from these levels. With this in mind, let’s take a look at 2 marijuana stocks to watch this week in May.
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Marijuana Stocks To Watch:
- Village Farms International, Inc. (NASDAQ: VFF)
- Aurora Cannabis Inc. (NYSE: ACB)
Village Farms International, Inc.
Considered one of the few cannabis companies making money Village Farms International, Inc. is a North American greenhouse grower now focusing on opportunities in the cannabis and CBD segments. Particularly Pure Sunfarms is the company’s wholly-owned subsidiary and one of the largest cannabis operations in North America. Currently, with one of the best-selling cannabis brands, Pure Sunfarms has delivered 9 quarters of positive adjusted EBITDA since commencing sales.
To be specific, the company Village Farms International, Inc. saw quarterly sequential growth of 28% and 248% growth year over year with retail branded sales to provincial distributors of $15.5 million. In total Village Farms reported fourth-quarter revenue of $47.4 million a 43% increase from 2019. Additionally, full-year 2020 revenue was $170.1 million an increase of 18% compared to 2019.
VFF stock is up 4.04% year to date and has shed 23.55% in the past month. Closing at $10.67 on May 5th VFF stock set a new in February of $20.32. According to analysts at Cnn Business VFF stock has a 12-month median price target of $22.00 per share. This estimate represents a gain of 106.57% from current levels. For this reason, VFF stock is a top Canadian marijuana stock to watch right now in May.
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Aurora Cannabis Inc.
Once the pillar of the Canadian cannabis market Aurora Cannabis Inc. is a company that produces and distributes medical cannabis products globally. In its latest earnings report, Aurora announced its fiscal 2021 second-quarter financials with total cannabis net revenue of $70.3 million an increase of 11% versus Q2 2020. The company attributes revenue growth to high margin international medical sales that are up 562% from the year before.
On May 13th Aurora is expected to announce its third-quarter fiscal 2021 results after the bell. Aurora has recently announced its entry into the US market through the acquisition of Reliva. In detail, Reliva is a CBD producing company in America. In essence, this could possibly assist Aurora in making a presence in the US in the future. At the present time, ACB stock has seen significant declines in market value.
ACB stock is up 4.33% year to date with a high of $19.68 in February. Closing at $8.78 on May 5th ACB stock is down 5.14% in the last month. According to analysts at Tip Ranks, ACB stock has a 12-month average price target of $9.60 per share. This price target could be a 9.34% gain from current levels. As Aurora continues to reclaim its former glory ACB stock could be a top Canadian marijuana stock to watch.
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