Could US Cannabis Reform Be A Catalyst For The Canadian Industry?
Are you looking for top marijuana stocks in 2021 as the cannabis industry in the US gets closer to federal reform? In November the best cannabis stocks to buy have begun to see some upside in trading after months of declines this year. In general, this momentum began when GOP Rep. Nancy Mace introduced the States Reform Act which could be the middle ground for a solution to federal cannabis reform.
Also, in November many leading cannabis companies are reporting earnings that could be extra fuel for the best performers. Because of months of declines, many top marijuana stocks are trading near their lowest market value in 2021. One area of the cannabis sector that has lost significant value since reaching highs in February is Canadian marijuana stocks. For the most part, Canadian cannabis companies have not performed as well as US companies in 2021.
Some LPs continue to take large losses even as revenue increases in their latest reports. But with the possibility of US federal marijuana legalization comes the substantial potential for the Canadian cannabis companies to enter the US market. This would allow them to execute their plans to enter the US market in the future. As top cannabis stocks begin to show more volatility it could be time to make a watchlist of pot stocks before they begin to run.
Finding The Best Investments In Pot Stocks In 2021
Before investing in the cannabis sector, it’s important to always do your own research on a company before investing. Researching how a company is performing by looking into its earnings and press releases can help narrow down your list to the top performers. It’s also important to follow how a stock moves in the market to establish the best entry-level for your investment. As things continue to heat for the cannabis sector let’s look at 2 top Canadian marijuana stocks to watch this week.
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Best Canadian Cannabis Stocks To Watch In November
- Canopy Growth Corporation (NASDAQ: CGC)
- HEXO Corp. (NASDAQ: HEXO)
Canopy Growth Corporation
Canopy Growth is one of the largest producers and distributors of cannabis and cannabis-derived products in the Canadian industry. Primarily, the company sells cannabis and hemp-derived products in Canada, the US, and Germany. Earlier in 2021, Canopy made a US distribution agreement with Southern Glazers Wine & Spirits for a CBD beverage portfolio. In the Canadian market Canopy increased its brand portfolio with the acquisition of one of the countries premium cannabis brands The Supreme Cannabis Company, Inc. Additionally, the company introduced Whisl an innovative CBD vape designed to manage your mood throughout the day.
In October the company announced it has plans to acquire Wana Brands the #1 edibles brand in North America. On November 17th the company announced it is expanding its premium flower portfolio with new offerings for 7Acres and DOJA brands. Canopy released its second-quarter fiscal 2022 financial results with $131 million and a total net cannabis revenue of $95 million. As it stands the company saw a net loss of $16 million in Q2 fiscal 2022. Overall, Canopy had an Adjusted EBITDA loss of $163 million in Q2 FY 2022
CGC stock is trading at $13.78 on November 17th down 4.14% for the trading day at 1:45 pm EST. Currently, the stock has a 52-week price range of $11.31-$56.50 and is down 41.64% year to date. According to analysts at CNN Business CGC stock has a 12-month median price target of $12.46 per share. This would represent a downside of 9.38% from its last trading price.
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HEXO Corp.
HEXO Corp. is a Canadian company with award-winning cannabis products in the market. In general, the company has a strong presence throughout a global industry, serving the Canadian recreational market with an extensive brand portfolio. As it stands, HEXO is producing medical sales in Canada, Israel, and Malta. In addition, the company has been expanding into is the US cannabis market as well. HEXO serves the Colorado market with Truss CBD USA a joint venture with Molson Coors. Recently, the company acquired Zenabis Global Inc. 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 October HEXO delivered its fourth-quarter fiscal 2021 results that show strong growth. To highlight, the company saw total Q4 2021 net sales of $38.7 million up from $22.6 million in Q3 2021. In addition, total net revenue increased to $123.5 million in fiscal 2021. 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 is trading on November 17th at $1.45 down 10.61% for the trading day at 2:11 pm EST. Currently, the stock has a 52-week price range of $1.27-$11.04 down 55.98% year to date. According to analysts at Tip Ranks HEXO stock has a 12-month average price target of $1.61 per share. In this case, this would be an upside of 11.42% from its last trading price of $1.45.
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