Marijuana Stocks In Todays Market
During today’s trading session most marijuana stocks have continued to show upward momentum in the market. Some new IPOs like Silver Spike Acquisition Corp. (NASDAQ: SSPK) better known as Weedmaps have gained value throughout the week and are up over 6% in morning trading. As things progress throughout 2021 the U.S. cannabis industry is entering an era of growth and expansion across the country.
In reality, the next few years could bring massive changes to the legality of cannabis in the U.S. and on a global scale. At the present time in America federal reform has passed through the House of Representatives and has a good chance of passing in a Democratic-led Senate this year. In essence, this would mean the decriminalization of cannabis in the states and also federal reform in the current banking laws dealing with cannabis companies. Essentially this could be a huge growth catalyst for marijuana companies. Actually by 2025 analysts at New Frontier Data are predicting U.S. cannabis sales of $41.5 billion. In perspective, this would be almost double the current 2021 estimates.
Growth In The Flourishing Cannabis Industry
As the cannabis industry flourishes so will the leading marijuana companies that have been positioning themselves to capitalize off the growing market. In reality, some of the top cannabis companies have already begun to report increased revenue and could continue those trends going into 2021 financial results. As a result, top marijuana stocks could continue to see gains in the market. But with so many top pot stocks already trading at highs in the market could investors find more value in smaller cannabis stocks to buy right now.
Although these marijuana stocks have not gained as much value as the more popular top cannabis stocks recently, they are gaining value. Currently, these pot stocks to watch have the potential for short-term gains in the market. In addition, they are also well-positioned for growth in the expanding market. With this in mind, let’s take a look at 2 marijuana stocks to watch for gains in 2021.
Marijuana Stocks To Watch:
KushCo Holdings, Inc.
KushCo Holdings, Inc. is a premier provider of ancillary products and services to the legal cannabis and CBD industries. At the present time, the company has sold more than a billion units globally. Generally, KushCo had some issues during the pandemic in 2020 but later in the year began to show revenue strength. In fact, the company is reporting Q1 fiscal 2021 record December sales of $14.7 million. In essence, this is credited to strong MSO and LP purchasing activity. Additionally, KushCo achieved revenue of $26.8 million for the period and had the second quarter of positive adjusted EBITDA. Also, the company increased its fiscal 2021 guidance to $130-$160 million. Some of the highlights KushCo recently achieved are new long-term contracts with the top 5 MSOs.
KSHB stock is up over 111% in trading so far this month and could continue with this upward trend. Currently, the stock has a 52-week high of $2.12 back in January of 2020. As KushCo continues to regain its market share KSHB stock could have future growth potential in the market. With a growing cannabis industry, KushCo is well-positioned to benefit from any increases in the derivatives market. With this in mind, KSHB stock is a marijuana stocks to watch for more gains in January 2021.
Vireo Health International, Inc.
Vireo Health International, Inc. is a leading science-focused, MSO cannabis company in the U.S. Currently, the company is generating revenue in 7 states and continues to expand its presence. Generally, Vireo cultivates its cannabis in environmentally-friendly greenhouses and manufactures pharmaceutical-grade cannabis extracts. In the companies, last financial report in Q3 2020 Vireo had total revenue of $13.4 million an increase of 68% from the previous year. In addition, the company had a gross margin of 42.7% which reflects its improving manufacturing efficiency in core markets. Also, important Vireo managed to increase retail revenue by 61% to $9.9 million.
Currently, Vireo has 11 operating dispensaries with another 7 expected to open in Q1 of 2021. Recently Vireo’s chairman and CEO Dr. Kyle Kingsley said,” For the past several quarters we’ve been focused on positioning our vertically-integrated portfolio of assets to produce sustained and profitable growth, and we believe today’s results are an encouraging indicator that we’re nearing a critical inflection point in cash flow generation from operations.”
VREOF stock is up over 94% year-to-date and has growth potential for 2021. Recently VREOF stock reached a new 52-week high of $3.02 and is trading on January 20th at $2.90 per share. As Vireo continues its expansion into new states like Nevada the potential for gains in the market increases. For this reason, VREOF stock is a top pot stock to watch for January 2021.