Best Cannabis Stocks In Q4 2021
Are you looking for the best marijuana stocks to invest in as the SAFE Banking Act passes in the House? This week many top cannabis stocks began to see some upside in the market. After several months of market declines, the cannabis sector started to recover some of the value shed in September. This is partly because of an amendment that is identical to the SAFE Banking Act passing in the House a few days ago. Going into Friday top marijuana stocks have regained most of the value lost in September.
This month pot stocks have seen some of their lowest price points in 2021. In the meantime, some of these cannabis companies are delivering strong revenue growth and expanding rapidly across the US and Canada. In the US cannabis market, more states are legalizing cannabis use whether for recreational or medical use. As the market expands leading cannabis companies are using mergers and acquisitions to quickly expand their footprint into new markets.
Canadian cannabis companies are also positioning themselves to enter the US market. Although they have not performed as well as US companies, they have seen the most upside when US cannabis reform is mentioned. Although there is still some work to do to get marijuana banking reform through the Senate September could produce some upside for top cannabis stocks.
Finding The Right Investments In The Cannabis Industry
For investors finding the best marijuana stocks to buy requires some due diligence on these companies. Researching a company’s earnings and stock performance can help you establish the best positions for your investments. Before investing in cannabis stocks there are a few important factors to consider. For one top pot stocks are known for having significant market volatility. In 2021 the cannabis sector rallied in the first quarter and peaked in February.
Now after several months of declines, we have some form of catalyst for pot stocks. For investors looking to get familiar with some of the best marijuana stocks for your watchlist, there are some with potential returns. In general, these cannabis companies are some of the largest in the market and have continued to grow in 2021. Let’s look at 2 top marijuana stocks for your list to close the week.
Best Marijuana Stocks To Watch Before October 2021
Green Thumb Industries Inc.
At the present time, Green Thumb Industries Inc. is a leading cannabis consumer packaged company that has established a large footprint in key markets across the US. Currently, Green Thumb has 65 retail locations across 14 states and recently opened its third store in New Jersey. In addition, GTI has licenses for 111 retail locations for future expansions. During Q2 of 2021 GTI opened a Cookies on the Las Vegas Strip through an exclusive partnership with the privately-owned Cookies Brand. Green Thumb announced it closed the acquisition of Dharma Pharmaceuticals and is entering the Virginia cannabis market as well.
In August Green Thumb reported its second-quarter 2021 results with revenue of $221.9 million up 85.4% year over year. To highlight, for the first half of 2021 the company has delivered revenue of $416.3 million an increase of 87.3% from the previous year. As a result, this is the fourth consecutive quarter of positive GAAP net income with $22.1 million or $0.10 per diluted share. Green Thumb has an adjusted operating EBITDA of $79.3 million or 35.7% of revenue.
GTBIF stock closed on September 23rd at $26.83 down 13.21% in the last six months. The stock has a 52-week price range of $11.60-$39.11 and is up 9.49% year to date. According to analysts at Tip Ranks GTBIF stock has a 12-month average price target of $48.28 per share. In essence, this would represent an upside of 79.98% from its last trading price of $26.83. As the US cannabis market continues to grow GTBIF stock could be one of the best US pot stocks for your list right now.
Canopy Growth Corporation
In the Canadian market Canopy Growth is one of the largest producers and distributors of cannabis and cannabis-derived products. At the present time, the company sells cannabis and hemp-derived products in Canada, the US, and Germany. Earlier this year, the company made a US distribution agreement with Southern Glazers Wine & Spirits for a CBD beverage portfolio. Additionally, 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.
In August Canopy released its first-quarter fiscal 2022 financial results with 23% growth in Q1 2022 compared to Q1 2021. To highlight, the company is reporting net revenue of $136 million in Q1 fiscal 2022 driven by strong double-digit growth across Canada. Canopy reported total net cannabis revenue of $93 million in Q1 2022 an increase of 17% from the prior year. In addition, other consumer products revenue was $43 million. Currently, net earnings in Q1 2022 are $390 million of which $518 million was driven by other income totaling $581 million during Q1 2022. The company saw an adjusted EBITDA loss in Q1 2022 of $64 million an improvement from Q1 2021.
CGC stock closed on September 23rd at $14.56 down 15.59% in the last month. The stock has a 52-week price range of $13.35-$56.50 and is down 40.91% year to date. According to analysts at CNN Business CGC stock has a 12-month median forecast price target of $19.76 per share. In this case, this would be a gain of 35.84% from its last trading price of $14.65. As federal cannabis reform continues to be a major catalyst for pot stocks CGC stock could be a potential play for investors going into October.
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