Investing In Top Cannabis Stocks 2021
Are you looking for the best marijuana stocks to buy in August? Starting this month, the top cannabis stocks to invest in have begun showing some upward momentum. As earnings for the leading cannabis companies show revenue growth top pot stocks continue to climb. For the most part, cannabis companies are showing an improvement in revenue this quarter.
In 2021 the cannabis market has continued to expand on the state level. This has allowed companies to grow and gain market share in new states. Since 2020 the cannabis industry has been growing at a rapid rate and this type of expansion is expected to continue for the next five years. According to a report from Statista the US sales of legal recreational cannabis are expected to reach an estimated $42 billion by 2026.
In 2020 more than two-thirds of adult Americans currently believe cannabis should be made legal in the US. In Congress Senate Majority Leader Chuck Schumer has unveiled a draft of the Cannabis Administration and Opportunity Act. The lawmaker has done this to gain more support for the legislation that could possibly change the state of federal cannabis legalization. This could be a major catalyst for top cannabis stocks if it happens this year and could increase the rate at which the US cannabis market grows.
US Cannabis Legalization And Marijuana Industry Growth
Currently, US cannabis companies are performing better than their Canadian counterparts. Although Canadian cannabis companies continue to show improvements in their balance sheets, they are not operating at the level most top US cannabis companies are. For traders finding the best cannabis stocks to invest in august requires some due diligence on the part of the trader. Researching a company’s financial results and studying how the stock performs in the market can help you establish the best positions for your portfolio.
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As it stands most top marijuana stocks are trading near their lowest price action since the start of the year. Because of this, it could be time to start adding top cannabis stocks to your watchlist this week. As the cannabis industry continues growing in the US and on a global scale there are many ways to gain exposure to the sector. With this in mind, let’s look at 2 top marijuana stocks for your list in August.
Top Marijuana Stocks To Watch In August
- IM Cannabis Corp. (NASDAQ:IMCC)
- Acreage Holdings, Inc. (OTC:ACRHF)
IM Cannabis Corp.
Based in Israel, IMC is a global operator in the medical and adult-use recreational cannabis sector, that supplies products to Israel, Germany, and Canada. At the present time, the company has established the IMC brand as a staple in the Israeli medical cannabis industry. Recently IMC has also expanded its business to offer services to the medical cannabis industry. In Europe, IMC operates through Adjupharm, a German-based subsidiary, and EU-GMP-certified medical cannabis distributor.
Last month IMC announced the completion of a state-of-the-art logistics center in Germany. Once it’s operating this facility will allow Adjupharm to streamline its supply chain including repackaging of bulk cannabis. On August 9th the company announced a partnership with cbdMD Inc. to launch cbdMD products in Israel. Recently, IMC gave investors preliminary Q2 results and a Q3 outlook for 2021. In detail, IMC expects net revenue of $11-$12 million in Q2 up 30% sequentially. The company is expecting significant revenue growth in the third quarter of 2021 from growth in Germany. Specifically, the company is resuming shipments at the start of the third quarter as well as the additional agreements to ensure the flow of EU-GMP supply.
IMCC stock closed at $5.00 on August 10th down 35.90% year to date. In the last five trading days, IMCC stock has traded flat and has a 52-week price range of $0.784-$11.63. According to analysts at Tip Ranks IMCC stock has a 12-month average price target of $8.18 per share. In essence, this would represent an increase of 63.60% from its last trading of $5.00. As the global cannabis industry continues to flourish IMCC stock could be a top cannabis stock for your watchlist in August.
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Acreage Holdings, Inc.
Acreage Holdings, Inc. is a US MSO of cannabis cultivation and retail facilities across America. At the present time, the company is focusing on improving profitability, controlling costs, and accelerating organic growth. As it stands Acreage has a partnership and a possible acquisition with Canadian giant Canopy Growth Corporation (NASDAQ:CGC). Ultimately, this partnership could make Acreage instrumental in the Canadian cannabis companies’ entry into the US cannabis industry. Acreage has established a large presence in New York and New Jersey and could see significant growth in the coming years from the growing markets there. Currently, Acreage operates the maximum number of dispensaries allowed in New Jersey and is working on completing its New Jersey cultivation facility.
Acreage announced its second-quarter 2021 results on August 9th. The company saw revenue growth of 63% year over year and produced consolidated revenue of $44.2 million. As a result, the gross margin was 54% with an adjusted EBITDA in Q2 2021 of $8.1 million. Acreage had a net loss in Q2 of $2.6 million and improvement from the net loss of $37.2 million from the year prior. Retail revenue for the second quarter of 2021 was $28.4 million up 43% year over year.
ACRHF stock is trading on August 10th at $3.128 down 14.54% in the last 30 days. The stock has a 52-week range of $1.90-$9.00 and is almost flat year to date. According to analysts at Market Beat ACRHF stock has a consensus price target of $7.00 per share. Currently, this would represent a gain of 123.8% from its last trading price of $3.128. With this in mind, ACRHF stock could be a top pot stock for your list right now.
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