Global Cannabis Stocks: Top Picks for 2023’s Thriving Marijuana Market
The international cannabis industry and top marijuana stocks have seen an unparalleled change in recent years, emerging from the shadows of prohibition to become one of the most promising and profitable sectors in the global market. The relaxation of legal constraints, as well as the growing acceptability of cannabis for medicinal and recreational purposes, have opened the way for a green rush, attracting investors and entrepreneurs from all over the world.
Canada stands out as a trailblazer among the countries making substantial advancements in this burgeoning business, having been at the forefront of cannabis legalization since 2018. Over the last five years, the Canadian cannabis business has seen significant expansion, with companies breaking through obstacles, inventing novel products, and expanding their reach into international markets.
We will examine how cannabis companies capitalize on the increasing demand for cannabis products, from groundbreaking medicinal research to consumer-driven developments in the recreational market. Furthermore, we will examine how Canadian cannabis stocks perform in the global market in the face of severe competition from other countries and new rising competitors.
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Global Cannabis Market 2023: Identifying Potent Stocks to Elevate Your Portfolio
- IM Cannabis Corp. (NASDAQ: IMCC)
- SNDL Inc. (NASDAQ: SNDL)
- Aurora Cannabis Inc. (NASDAQ: ACB)
IM Cannabis Corp.
With operations in Israel, Germany, and Canada, IMC is a global pioneer in the medical and adult-use recreational cannabis businesses. According to the company, the IMC brand has enabled the Israeli medicinal cannabis sector to reach a critical juncture. Also, the medical marijuana product range at IMC is expanding. Adjupharm, a German-based EU-GMP-certified medicinal cannabis distributor, represents the company throughout Europe. The company has made lofty promises about establishing a cutting-edge logistics hub in Germany. With the help of this facility, Adjupharm will be able to optimize its supply chain by repackaging cannabis in large quantities.
Revenues were $13.2 million in the first quarter of 2023, up 1% from $13 million in the same period last year. Furthermore, gross profit in the first quarter of 2023 was $3.5 million, up 46% from $2.4 million in the same period the previous year. Higher-margin sales of imported premium cannabis products and lower sales costs boost expansion. Before fair value adjustments, the gross margin increased from 24% in the previous quarter to 30% in the first quarter of 2023. The corporation’s operational loss was $3.0 million in the first quarter of 2023, compared to $8.9 million in the first quarter of 2022, a 66% drop.
IMCC Stock Performance
IMCC stock closed at $0.88 on July 17th, down 12% in the past month of trading. The stock has a 52-week price range of $0.59-$8.30 and is down 9.73% year to date. According to analysts at CNN Business, IMCC stock has a median price target of $1.11 per share. In this case, this would represent an increase of 22.49% from its last trading price of $0.88.
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Sundial Growers Inc.
In Canada, SNDL Inc. creates, markets, and sells cannabis-related goods. The corporation’s two core business divisions are retail operations and cannabis-related activities. It manufactures, distributes, and sells cannabis to adult markets, as well as sells cannabis privately for recreational purposes through corporate-owned and franchised retail cannabis enterprises. In addition, the company manufactures and sells inhalable items such as flower, pre-rolls, and vapes. Among its brands are Top Leaf, Sundial Cannabis, Palmetto, and Grasslands.
First Quarter 2023 Financial and Operational Highlights
SNDL recorded net revenue of $202.5 million in the first quarter of 2023, a 1,050% increase from $240.4 million in the fourth quarter of 2022 and $17.6 million in the first quarter of 2022. Acquisitions of Alcanna, Valens, and Zenabis improved growth over the preceding year’s comparative quarter. Seasonality in the Liquor Retail category can explain the revenue decline in the first quarter of 2023 over the fourth quarter of 2022, as the fourth quarter is generally the strongest, and the first quarter is traditionally the lowest. This was somewhat offset by increased Cannabis Operations revenue due to Valens’ half-quarter participation in 2023.
The company lost $36.1 million in the first quarter of 2023, compared to $161.6 million in the fourth quarter of 2022 and $38.0 million in the first quarter of 2022. In addition, a seasonal decline in Liquor Retail sales and inventories and $10 million in asset impairments exacerbated the first-quarter deficit.
In January 2023, SNDL completed its acquisition of Valens. The combined enterprises comprise a low-cost, vertically integrated Canadian enterprise with annual pro forma revenues of more than a billion dollars. The company is one of Canada’s major adult-use cannabis manufacturers and marketers, with a wide portfolio of brands, a 197-store multi-banner cannabis retail network, low-cost biomass procurement, excellent indoor production, and low-cost manufacturing facilities.
SNDL Stock Performance
SNDL stock closed at $1.42 on July 17th, up 1.43% in the past month of trading. Overall, the stock has a 52-week price range of $1.25-$3.61 and is down 32.06% year to date. According to analysts at CNN Business, SNDL stock has a 12-month consensus price target of $3.32 per share. In this case, this would represent an increase of 135.29% from its last trading price of $1.42.
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Aurora Cannabis Inc.
Aurora Cannabis Inc. is a Canadian company that grows and exports medical marijuana to countries worldwide. To establish a footprint in the US cannabis business, the company acquired Reliva, which produces CBD in the country. Aurora now has three more cultivars of San Rafael ’71. In addition, for $8 million, the company sold marijuana to Israel. After delivering the first batch of cannabis to the French medicinal cannabis pilot program, the company is now focused on balancing its accounts. In May, the company established its first EU-GMP-accredited production and manufacturing facility in Germany, extending its market dominance there.
Third Quarter 2023 Highlights
- Achieves Second Sequential Quarter of Positive Adjusted EBITDA1
- Net Revenue Reaches $64 Million, Increasing 4% Sequentially and 27% YoY; Driving Adjusted Gross Profit1 of $30.6 Million
- Balance Sheet Remains Strong With a Cash Position of ~$230 Million Cash on Hand with ~$80 Million of Convertible Notes Remaining Outstanding
- Clear Path to Achieve Positive Free Cash Flow by the End of Calendar Year 2024 Through Additional $40 Million of Annualized Cost Efficiencies
ACB Stock Performance
ACB stock closed at $0.5296 on July 17th, down 1.93% in the last month of trading. In this case, the stock has a 52-week price range of $0.49-$1.94, down 42.60% year to date. According to analysts at CNN Business, ACB stock has a median price target of $0.75 per share. This would be an upside of 42.81% from its last trading price of $0.5296.
Investing in Cannabis: Top Canadian and Global Stocks to Thrive in 2023
Mastering technical indicators and adopting risk management tactics will be critical as you begin your trading experience. In general, by utilizing these tools and approaches, you may make informed trading decisions, find profitable opportunities, and, most importantly, reduce risk to protect your hard-earned wealth. Remember that trading is a learning process, and the keys to being a good trader in the volatile world of financial markets are patience, discipline, and ongoing education.
Staying current on the latest innovations and market trends as the industry evolves is critical. Overall, keeping an eye on the performance of these top marijuana stocks will provide vital insights into the cannabis industry. This can help you navigate the ever-changing landscape and aid in forming investment decisions.
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