Cannabis Reform Creates A Catalysts For The Marijuana Industry
As we head into a short trading week marijuana stocks have rallied in a major way to start 2021. In most cases leading cannabis, stocks have seen double-digit percentage gains in the first two weeks of trading. Since the November presidential election investors have been staking their claim to the growing U.S. cannabis industry. At the current time, cannabis reform is becoming much more achievable with current changes in government leadership. This could mean more potential growth for the U.S. cannabis market for the next few years.
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In reality, 2020 seems to be a monumental turning point for the cannabis industry globally. Currently, global acceptance of marijuana for medicinal purposes could stimulate growth internationally. And with the U.S getting closer to a less regulated industry it could be time to invest in marijuana stocks for future gains. Although in the past most leading marijuana stocks have had a turbulent past renewed interest in the sector has changed market behavior. But with recent highs and current issues with the changing of power in America, at some point top pot stocks will most likely reassess recent gains.
How Will Top Pot Stocks Perform In 2021?
As an investor looking for profitable positions in 2021 cannabis stocks are delivering to start the year. In essence, the cannabis industry is doing this in more ways than one. Recently, most marijuana companies are reporting strong earnings to finish 2020 and continuing this same trend in Q1 2021. Being that we saw how much expansion occurred in the form of M&A’s throughout the year we could see more growth in revenue as a result.
To put it differently, for the next 90 days we could see substantial gains in the sector. In reality, there are many different ways to gain exposure to the marijuana market. At the current time, some of the smaller pot stocks to watch could hold more potential value for shareholders. As it stands these stocks have growth potential and are gaining notoriety amongst investors. With this in mind let’s take a look at 2 marijuana stocks to add to your watchlist for this week.
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Marijuana Stocks To Watch:
- Jushi Holdings Inc. (NASDAQ: JUSHF)
- Sundial Growers Inc. (NASDAQ: SNDL)
Jushi Holdings Inc.
Jushi Holdings Inc. is a vertically integrated cannabis company focusing on building a multi-state portfolio of branded cannabis assets. In general, the company has established its presence through opportunistic acquisitions, distressed workouts, and competitive applications in the cannabis ecosystem. Currently, the company has 30 retail locations, 3 cultivation sites, and 4 manufacturing facilities.
Last week Jushi expanded its footprint in California with the acquisition of Organic Solutions of the Desert, LLC. In addition, Jushi is also moving forward with the opening of a storefront retail dispensary in Culver City, California. On January 4th Jushi increased its revenue guidance for Q4 2020 and now expects $32-$33 million and adjusted EBITDA of $2.5 -$3 million. Additionally, the company’s 2021 revenue guidance is $205-$$255 million with an adjusted EBITDA of about $40-$50 million.
JUSHF stock is up 364.8% since January 20th of 2020 and has maintained its current trading price relatively stable at $5.95. In last week’s trading, JUSHF stock reached its 52-week high of $6.47 per share. Most analysts currently are predicting JUSHF stock could go higher from these levels. As marijuana stocks continue to show potential gains JUSHF stock is a top pot stock to watch.
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Sundial Growers Inc.
Sundial Growers Inc. is a licensed producer that crafts cannabis using state-of-the-art indoor facilities. This Canadian operation has a small batch approach to growing cannabis that produces award-winning quality cannabis for consumers. Recently Sundial launched high-quality cannabis derivative products under its Top Leaf brand. The move comes amidst rising demand for cannabis extracts. Last year in Sundials Q3 financials the company is reporting a branded net cannabis sales increase of 77% a figure which is now 69% of total cannabis sales. Actually, the company is continuing to adapt its process to meet consumer needs of better quality and higher THC potency. Also, important Sundial has a much higher gross selling average than most with a price per gram of $5.53 in Q3 of 2020.
SNDL stock is up over 50% since the beginning of 2021 and has been showing some market fluctuations for the past 3 months. Currently, SNDL stock is highly favored by investors on the trading app Robin Hood. As one of the few marijuana penstocks tradable on the app, its price point of $0.7136 is attracting investors. With a 52-week high of $3.88, SNDL stock could try and regain some of its previous market value. Because SNDL stock has provided short term gains for the beginning of 2021 it’s a cannabis stock to watch for January 2021.
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