Best Cannabis Stocks To Invest In Q4 2021
For many investors top marijuana stocks have seen significant volatility in 2021. After reaching new highs in February many of the best cannabis stocks to buy have seen significant market declines for the past six months. This is especially true with Canadian marijuana stocks in September. Since the presidential election, Canadian cannabis stocks have rallied on the notion federal cannabis legalization in the US would happen earlier in 2021.
Now in September Canadian cannabis stocks have suffered the largest market declines in the sector. With most top pot stock trading near their lowest stock prices so far this year it could be time to make a list of cannabis stocks to watch right now. In many ways, Canadian cannabis companies have been preparing for entry into the US cannabis market. Some have made acquisitions and others have started using CBD as an entry into the market.
Although they have seen growth in the Canadian market is has not been enough to compete with the US MSOs in 2021. In any case from September trading levels, top Canadian marijuana stocks could have some upside for investors. Recently some of the leading Canadian pot stocks have fallen under the $3 stock price. Because of the lower market value, these stocks could be susceptible to more volatility. In the event, Congress does pass federal cannabis reform sometime this quarter is could be a major catalyst for Canadian cannabis stocks.
Researching The Best Pot Stocks To Invest In Right Now
For investors finding the best investments requires some due diligence on these companies. Researching a company’s earnings and watching stock performance can help you achieve the best returns in the market. As the market climbed in August most marijuana stocks saw significant declines this could have them trading at levels that could produce upside for investors. Another area some Canadian companies have seen growth in is the international market.
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As this market continues to expand some Canadian companies will continue to expand their market globally. After taking a significant hit in August the Canadian cannabis sector could be primed for some upward momentum. Some Canadian pot stocks have fallen to penny stock price points this month. Although these are traditionally higher-risk positions, they may produce short-term gains for investors. Let’s take a closer look at 2 top Canadian marijuana stocks to add to your watchlist in September.
Canadian Marijuana Stocks To Watch
- OrganiGram Holdings Inc. (NASDAQ:OGI)
- HEXO Corp. (NASDAQ:HEXO)
OrganiGram Holdings Inc.
In Canada, OrganiGram Holdings Inc. is one of the leading licensed producers of cannabis and cannabis-derived products. Specifically, the company is known for producing high-quality, indoor-grown cannabis products to both the medicinal and recreational markets. Organigram is strategically developing its international business partnerships increasing the company’s presence in the global market. The company is also growing its wholesale shipping of cannabis and sells products online. In August Organigram extended its SHRED product portfolio with high quality, SHRED’ems Gummies. In addition, the company also launched Edison JOLTS Canada’s first flavored high potency THC ingestible extracts.
OrganiGram has produced 84 new SKUs since July 2020 as a part of revitalizing its products portfolio. This includes two new high potency strains under the higher-margin Edison brand in Q3. In its latest report, Organigram saw third-quarter fiscal 2021 results with gross revenue up 51% sequentially to $29.1 million. Primarily, the company grew its adult-use recreational net revenue by 40% sequentially to $16.8 million in Q3 2021. Ultimately, the company expects sequentially higher revenue and improved adjusted gross margins in Q4 2021. To note, the company expects to launch more than 20 new SKUs before the end of Q4 2021.
OGI stock closed on September 7th at $2.61 down 2.97% in the past month. The stock has a 52-week price range of $1.01-$6.45 and is up 96.24% year to date. According to analysts at CNN Business OGI stock has a 12-month median price target of $3.03 per share. In essence, this would represent an increase of 15.51% from its last trading price of $2.61. In September OGI stock could be a top Canadian cannabis stock for your list right now.
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HEXO Corp.
Next on the list is HEXO Corp. a Canadian company with award-winning cannabis products. At the present time, the company is growing its presence throughout a global market and serving the Canadian recreational market with an extensive brand portfolio. Primarily, HEXO is producing medical sales in Canada, Israel, and Malta. Recently, the company has been expanding into the US cannabis market as well. To illustrate, HEXO serves the Colorado market with Truss CBD USA a joint venture with Molson Coors. Recently, the company acquired Zenabis Global Inc. Zenabis is a Canadian licensed cultivator of recreational and medical-grade cannabis. Both acquisitions will help solidify the future expansion for HEXO in Canada, Europe, and the US market.
In its third-quarter fiscal 2021 results, the company reported that total net sales increased 2% year over year. Specifically, total net sales declined by $10.2 million from Q2 FY21. This was due to the company’s production issues relating to certain cannabis products. Notably, the company also did not produce any international medical sales in that quarter due to revised testing and additional certifications by the Israeli government. HEXO also purchased its first US production facility through a wholly-owned US subsidiary. The 50,000 square foot facility is in Fort Collins, Colorado, and will provide high-quality Powered by HEXO products across the US.
HEXO stock closed on September 7th at $2.32 and is down 40.21% in the past month. The stock has a 52-week price range of $2.29-$11.04 and is down 36.96% year to date. According to analysts at Tip Ranks HEXO stock has a 12-month average price target of $5.11 per share. In this case, this would represent an upside of 120.26% from its last trading price of $2.32.
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