Are You Buying Marijuana Stocks In May?
Are you looking for marijuana stocks to invest in right now? For the past 3 months, a downtrend in the top cannabis stocks to buy has left them at better levels to start a position. In 2021 the cannabis industry has been expanding rapidly across the US and Canada. Since the pandemic, an increase in cannabis demand has created a growth environment for the market that most leading marijuana companies are benefiting from.
With many companies reporting impressive revenue growth in the first quarter of 2021 new states legalizing cannabis could produce future growth. But before investing in marijuana stocks there are a few things to consider about the cannabis sector. For one marijuana stocks are known for being some of the most volatile stocks on the market. One area that is considered a high-risk high reward part of the market is marijuana penny stocks.
In 2021 top cannabis penny stocks have seen the most momentum so far this year. In January top marijuana penny stocks saw the most gains in the market during the rally in the cannabis sector. After February a decline in pot stocks has left many marijuana stocks trading near December 2020 levels. But with things looking up for some form of federal cannabis reform and legalization the cannabis sector could be about to catch its second wind.
Potential Catalyst For The Marijuana Industry
This week many investors have their eyes locked onto Capitol Hill waiting to see if there is an introduction of a reform bill. Since the presidential election, the cannabis industry has been moving on to the potential of cannabis legalization in the US. With that possibility becoming more prevalent in May it could be time to invest in the top marijuana penny stocks right now. In reality, finding the best cannabis stocks to invest in requires some due diligence on the part of the investor.
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Generally speaking, investors have a better chance of realizing gains in the market when they research a company and study how the stock performs in the market. With this in mind, we can take a closer look at some options that are marijuana penny stocks with the potential for investors. Currently, these could be top cannabis penny stocks to watch to close out May.
Marijuana Penny Stocks To Watch
- The Valens Company Inc. (OTC: VLNCF)
- 4Front Ventures Corp. (OTC: FFNTF)
The Valens Company Inc.
A leading manufacturer of cannabinoid products The Valens Company Inc. provides processing services, product development, and supplies consumer packaged goods for the cannabis industry. Specifically, Valens specializes in high-quality cannabis-derived products for both the medical and recreational cannabis markets. In April Valens reported earnings for the first quarter of fiscal 2021 with gross revenue of $21.8 million up 21.4% compared to 2020. Additionally, the company also saw net revenue increase 24.7% to $16.0 million t=year over year. Currently, Valens continues to solidify its place as one of the largest third-party vape manufacturers in Canada.
Actually, the company manufactured and distributed the second-best-selling vape SKU across major markets in Canada. Also, Valens is improving its capital position and using a recent public offering to pursue strategic M&A opportunities in Canada. Another factor for future growth is Valens’ entry into the US market by way of the acquisition of a leading CBD company Green Roads. With this acquisition, Valens will now have access to the largest cannabinoid market in the world.
VLNCF stock is trading at $2.955 on May 24th up 121.54% year to date. In May VLNCF stock saw a high of $3.31 per share and has gained 26.32% in the last 30 days. According to analysts at Tip Ranks VLNCF stock has a 12-month average price target of $3.31 per share. In essence, this would represent an increase of 12.20% from current levels. For this reason, VLNCF stock could be a top marijuana penny stock to add to your watchlist this week.
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4Front Ventures Corp
One national MSO and retailer that has a market advantage in mass-produced low-cost quality branded cannabis products is 4Front Ventures Corp. The company distributes a portfolio of over 25 cannabis brands. Currently, 4Front has dispensaries in Illinois, Massachusetts, California, Michigan, and Washington state. In its last earnings report, 4Front saw Q4 pro forma revenue of $25 million and full-year proforma sales of $88.1 million for 2020.
Additionally, the company reaffirmed its previous announcement of full-year 2021 guidance and estimates Systemwide Pro Forma Revenue of $170-180 million. On May 24th 4Front is expected to release its first-quarter 2021 results after the close.
FFNTF stock is trading at $1.315 on May 24th at around noon up 42.86%. year to date. In February FFNTF stock reached a high of $1.98 and is up 92.45% in the last six months. According to analysts at Wallet Investor FFTNF stock has a 1-year forecast of $2.57 per share. Essentially this would be an increase of 95.43% from current levels. With this in mind, FFTNF stock could be a top marijuana penny stock in the last week of May.
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