Cannabis Stocks In May 2021
Over the second week in May, top marijuana stocks to invest in have begun to show some upside in trading. After a few months of declines in the market, May is beginning to look like we could see renewed upward momentum. At the present time leading cannabis stocks are trading near some of the lowest price points in 2021. Due to these lower levels, cannabis investors have a better chance of establishing a position for returns in the best marijuana stocks to buy in 2021.
But before investing there are some important elements about the cannabis sector to keep in mind. For one the top pot stocks are known for heavy market volatility. In 2021 most marijuana stocks rallied in January and February establishing new highs in the market with the possibility of US federal cannabis reform and legalization. Initially, investors believed this would happen earlier in the year and as time progressed the cannabis sector has lost ground in the market.
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But recent events on Capitol Hill could renew hopes of legalization. In the House, three Republicans introduced the Common Sense Cannabis Reform for Veterans, Small Businesses, and Medical Professionals Act. In detail, this would remove cannabis from the Controlled Substance Act and leave the FDA and the Tobacco Tax and Trade Bureau regulating the cannabis industry.
American Cannabis Reform And Legalization
Additionally, Chuck Schumer made mention that he would be introducing his bill shortly and wants to make sure cannabis reform policies are implemented before the SAFE Banking Act is pushed forward. In general, this could mean US cannabis reform could become a catalyst for cannabis stocks in the near future. With this in mind, we can look for US marijuana stocks with potential returns for short- and long-term investors.
It’s important as an investor to do your own due diligence on a cannabis company before investing. Initially researching a company’s financials and studying how the stock performs in the market are essentials to making good investments. With this intention let’s take a look at 2 of the best US marijuana stocks to invest in next week in May.
Marijuana Stocks To Watch:
- Innovative Industrial Properties, Inc. (NYSE: IIPR)
- Green Thumb Industries Inc. (OTC: GTBIF)
Innovative Industrial Properties, Inc.
As one of the only real estate investment trust that focuses on the US-licensed cannabis industry Innovative Industrial Properties, Inc. has dominated this space. Currently, IIP owns 70 properties across 19 states nationwide. On May 14th IIP announced it closed the acquisition of a property in Pennsylvania with approximately 239,000 square feet of industrial space once it’s complete. After the purchase, IIP will enter into a long-term triple-net master lease for the property with Parallel.
In May IIP announced first quarter 2021 results that beat expectations. Specifically, IIP generated Q1 total revenue of about $42.9 million an increase of 103% year over year. Additionally, IIP paid a quarterly dividend of $1.32 per share on April 15th. In general, IIP continues to drive revenue growth primarily by the acquisition and leasing of new properties. Although IIP as the company is performing well the stock seen a significant decline in value last week.
IIPR stock is down 5.05% in the last five days closing on May 14th at $175.41. In February the stock hit a new 52 weeks high of $222.08 per share. According to analysts, at CNN Business IIPR stock has a 12-month average price target of $219.00 per share. In essence, this represents an increase of 24.70% from current levels. IIPR stock could be considered one of the top options in the US cannabis sector for long-term investments.
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Green Thumb Industries Inc.
Green Thumb Industries Inc. is a leading US MSO cannabis consumer packaged goods company. As one of the top-performing US cannabis companies, GTI established a large presence in the US. Currently, GTI has 56 retail locations in the US across 11 states. On May 12th the company announced its first-quarter 2021 results with significant revenue growth. Specifically, total revenue generated for the first quarter was $194.4 million an increase of 89.5% from Q1 of 2020. In addition, GTI is reporting gross profits in the first quarter of 2021 of $110.9 million or 57% of revenue.
On May 14th GTI opened Cookies on the Las Vegas Strip through an exclusive partnership with the privately-owned Cookies Brand. Because of Cookies extreme popularity among younger cannabis consumers, this move could prove to significant for both companies. Aligning itself with Cookies could increase brand recognition for GTI and establish the company with a new generation of cannabis consumers.
GTBIF stock closed on May 14th at $29.50 up 3.54% for the day. In February the stock reached a new high of $39.11 and is up 20.41% year to date. According to analysts at Tip Ranks GTBIF stock has a 12-month average price target of $47.88 per share. This represents an increase of 62.31% from current trading levels. For this reason, GTBIF stock is a top US MSO cannabis stock to add to your watchlist for the third week in May.
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