Top Cannabis Stocks And Market Declines
For most top marijuana stocks in August, the declines continue to bring the cannabis sector to new lows in 2021. Top-tier cannabis companies are reporting strong revenue growth in this latest round of earnings, Unfortunately, it has not seemed to translate into gains in the market for the sector. Since the Presidential election in November 2020, the cannabis sector has been moving on one narrative. The potential of federal cannabis legalization and reform. As several different legislation like the SAFE Banking Act, and the MORE Act, made their way through the House. The hold up ultimately in the Senate.
In July Senate majority leader Chuck Schumer unveiled a draft of the Cannabis Administration and Opportunity Act. But now with the Delta Variant at concerning levels in the US. The focus of government changes over to the crisis. In general, a similar trading trend occurred during the last round of earnings with most pot stocks selling off when they reported financials.
For the most part, those were strong earnings as well and the cannabis industry is growing at a rapid rate across the United States and Canada. This has helped cannabis companies continue to show substantial amounts of revenue growth. In addition, these companies are expanding using mergers and acquisitions as a means of quickly making a footprint. On the state level, the cannabis market is setting sales records and more than two-thirds of Americans believe cannabis should be legalized.
The Cannabis Industries Potential Growth
Another area where the cannabis industry is growing quickly is online with delivery, pick-ups, and e-commerce. This has given way to a new category of sales that cannabis companies will expand in the future. According to Fact and Factors, market research reports global legal marijuana market size is forecast to reach $97 billion by 2026. This is from $22 billion in 2020, at 28% annual CARG growth. In general, there are many ways to invest in top marijuana stocks that could give you exposure to the cannabis sector.
Before investing in cannabis stocks, it’s important to research a company and study how the stock performs in the market. Doing your due diligence will help you achieve the best returns on your investment. In general marijuana stocks are known for being some of the more volatile areas of the market. This is important to keep in mind when you’re investing and is the reason many investors prefer to trade them using short-term methods. As you make a watchlist for your mid-August pot stocks let’s look at 2 top marijuana stocks this week.
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Top Marijuana Stocks To Watch Right Now
- High Tide Inc. (NASDAQ: HITI)
- Jushi Holdings Inc. (OTC: JUSHF)
High Tide Inc.
At the present time, High Tide Inc is a retail-focused cannabis corporation that also manufactures and distributes consumption accessories. Primarily, High Tide has a portfolio of companies that include a dominant Canadian cannabis retail chain, and a global manufacturer and distributor of cutting-edge smoking accessories. Currently, the company has established the largest accessories e-commerce platform in the world. On August 3rd High Tide opened its 21st retail location in Ontario which is the companies 89th branded retail location across Canada. On August 18th the company announced that its company shares have now been included in the ETFMG Alternative Harvest ETF (NYSE: MJ).
High Tide reported its second-quarter 2021 results with revenue increasing 99% to $40.9 million. Gross profit margins for the first quarter were $4.7 million compared to $1.8 million year over year. Also, In Q2 the company completed the acquisition of Smoke Cartel Inc and launched the sale of hemp-derived CBD products under its Grasscity brand. High Tide continues to see rapid expansion into the US cannabis market through the acquisition of a leading online retailer Dankstop.
HITI stock closed on August 17th at $7.20 and has gained 15.38% in the past five trading days. The stock has a 52-week price range of $3.00-$13.29 and has gained 139.64% year to date. According to analysts at Tip Ranks HITI stock has a 12-month average price target of $15.92 per share. This would represent an increase of 119.74% from its current trading price of $7.20. For this reason, HITI stock could be a top marijuana stock for your list in August.
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Jushi Holdings Inc.
Jushi Holdings Inc. is a cannabis and hemp company that is expanding its presence in the medical and recreational cannabis markets. Currently, the company is building a portfolio of branded cannabis and hemp-derived assets across the US. Jushi operates 20 dispensaries under the BEYOND/HELLO brand. In June a Jushi subsidiary Franklin Bioscience opened the 13th Beyond/Hello in Pennsylvania. Additionally, Jushi has 30 retail licenses in the US, and its national brand of cannabis dispensaries Beyond/Hello continues to see growth online and in-store.
Jushi Holding Inc. preannounced its second-quarter 2021 financials showing revenue of $47.7 million an increase of 14.6% sequentially and 219.7% year over year. In addition, the company saw gross profits of $21.9 million a 9.2% increase over Q1 2021. The company sustained a net loss of $11.4 million a $15.4 million improvement over Q1 2021. Jushi delivered an adjusted EBITDA of $4.6 million or 9.6% of revenue. On August 5th the company announced the upcoming launch of branded cannabis products in the commonwealth of Virginia. In detail, Jushi will debut its brand The Lab, vaporizable cartridges, and Tasteology its chewable line. The company also plans to launch two flower brands as well.
JUSHF stock closed on August $4.58 down 10.10% in the past five days. The stock has a 52-week price range of $1.95-$9.063 and is down 21.84% year to date. According to analysts at Market Beat JUSHF stock has a consensus price target of $6.63 per share. In essence, this would represent an upside of 44.7% from its last trading price. As the cannabis market begins to recover JUSHF stock could be a top cannabis stock for your watchlist.
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