Canadian Cannabis Stocks And The Current Market
In today’s trading, top marijuana stocks have given back most of what they gained since the start of September. Now eight days in and most cannabis stocks continue to decline in value. For over six months we have seen a downward trend in top pot stocks. One area that has experienced substantial declines in Canadian marijuana stocks. In 2021 the cannabis sector rallied in the first quarter but as the year progressed has been losing ground in the market.
In Canada, the market has grown, and companies have improved their balance sheets substantially from prior earnings. However Canadian cannabis companies are not performing as well as their US counterparts. It seems a changing of the guard is taking place and American companies are leading the industry. In 2021 many investors believed the US would have already ended federal cannabis prohibition and allow Canadian companies to enter the American market. But with nothing from Congress yet some investors have gone to other areas of the market.
To find the best Canadian cannabis stocks to invest in traders need to research leading cannabis companies and study how these stocks perform in the market. For instance, looking at a company’s latest financials to see revenue growth and cash flow for future expansion are good measures in the search for potential candidates. In addition, studying how a stock performs in the market can help you establish the best entry point for your investment.
Will Marijuana Stocks Go Back Up?
For a minute September began looking like top pot stocks would climb higher in the market. But with today’s pullback in most of the cannabis sector, some of these marijuana stocks could hold value for investors. In the Canadian cannabis market, there are companies that are performing better than others. For the past couple of years, many changes have occurred with mergers and acquisitions that continue to change who the market leader is in Canada.
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One leading Canadian company that has recently emerged as one of the top revenue producers is Tilray, Inc. (NASDAQ:TLRY). Notably, TLRY stock was one of the cannabis stocks that became famous for its part in the Reddit investor rally of January where the stock gained significant value. Let’s take a closer look at 2 other Canadian cannabis stocks for your watchlist in September 2021.
Best Canadian Marijuana Stocks To Watch This Week
- High Tide Inc. (NASDAQ:HITI)
- Aurora Cannabis Inc. (NASDAQ:ACB)
High Tide Inc.
High Tide Inc is a retail-focused cannabis corporation that also manufactures and distributes consumption accessories. At the present time, 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. Notably, the company has established the largest accessories eCommerce platform in the world. In August 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. As a result, gross profit margins for the first quarter were $4.7 million compared to $1.8 million year over year. In the second quarter, the company completed the acquisition of Smoke Cartel Inc and launched the sale of hemp-derived CBD products under its Grasscity brand. Overall, High Tide continues to see rapid expansion into the US cannabis market through the acquisition of a leading online retailer Dankstop. High Tide will provide its third quarter 2021 results on Tuesday, September 14, 2021, after the market close.
HITI Stock Performance
HITI stock is trading at $7.39 on September 8, 2021, up 18.51% in the last month. The stock has a 52-week price range of $3.00-$13.29 and is up 149.29% year to date. According to analysts at Market Beat HITI stock has a consensus price target of $15.00 per share. In essence, this would represent an upside of 10% from its current trading price of $7.39. Currently one of the Canadian pot stocks holding some of its value in 2021 HITI stock could be a top marijuana stock to watch in September.
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Aurora Cannabis Inc.
Next on the list is Aurora Cannabis Inc. a leading Canadian company that produces and distributes medical cannabis products globally. In its latest earnings, Aurora announced its third-quarter fiscal 2021 results with domestic medical net revenue at $26.9 million. Generally, the company had strong international medical revenue of $9.4 million. For the third quarter of fiscal 2021, the company has total cannabis net revenue of $58.4 million.
Recently, the company announced its entry into the US market through the acquisition of Reliva a CBD producing company in America. Aurora also expanded its San Rafael ’71 portfolio with the launch of 3 new proprietary cultivars. In July, the company delivered an $8 million shipment of cannabis to Israel. Right now, the company is working on restructuring its balance sheet. Ultimately, it has fulfilled the inaugural shipment to the French medical cannabis pilot program. Aurora will release its fourth-quarter fiscal year 2021 results on September 21st after the market close.
ACB Stock Performance
At the present time, ACB stock is trading at $6.94 on September 8, 2021, down 3.07% for the trading day. The stock has a 52-week price target of $3.71-$18.98 down 13.84% year to date. According to analysts at CNN Business, ACB stock has a 12-month median price target of $6.61 per share. In this case, this would represent a downside of 4.31% from its current trading price of $6.94. As Canadian companies continue to expand globally ACB stock could be a top cannabis stock for your list this week.
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