Canadian Cannabis Stocks As May Progresses
Are you looking at top marijuana stocks to invest in this week? At the current time, the best cannabis stocks to buy have seen declines in market value since February. Although market performance has been on the decline, this drop in the cannabis sector could produce future gains for new investors. In Canada, cannabis companies continue to establish some form of entry into the US market.
Currently, many companies have a strategy in place to capitalize on the growing market but are waiting for the federal government to pass cannabis reform in the US. In reality, the possibility of this happening soon continues to increase and could be a major catalyst for marijuana stocks to watch. Before investing in marijuana stocks there are a few important factors to consider. Traditionally, top pot stocks are known for displaying extreme market volatility on a regular basis. Because of this investing for the long term could be difficult for traders.
It’s important for investors to do their own due diligence before making an investment. Researching a company’s earnings and getting to know how the stock performs in the market can help you make better investment decisions. In the Canadian sector, the top marijuana stocks have seen the most volatility so far in 2021. After reaching new highs in February Canadian cannabis stocks have seen the deepest reduction in market value.
American Cannabis Legalization And The Canadian Sector
The possibility of seeing cannabis reform and legalization in the US on the federal level could mean significant upside for Canadian pot stocks. At Capitol Hill, more bills for cannabis reform are in the works and this could be a catalyst for the marijuana sector.
From current market value, Canadian cannabis stocks could have potential gains with marijuana stocks showing some upward momentum. Finding the best pot stocks to buy in 2021 could produce potential gains in the short and long term. With this in mind, let’s research 2 Canadian marijuana stocks for your watchlist in May.
Marijuana Stocks To Watch:
With the completion of a recent merger with Aphria Inc., Tilray, Inc. is now one of the largest revenue-producing Canadian cannabis companies in the industry. After missing first-quarter earnings estimates TLRY stock has traded almost flat in the last five days. Although these recent earnings missed Tilray has beaten consensus EPS estimates in the last two quarters of 2020. At the present time, Tilray has established a global presence, earlier this year the company became one of the first companies to send shipments of medical cannabis products to Spain.
What’s next for Tilray after the merger? For starters, Aphria Inc. acquired an independent US craft brewer Sweet Water Brewing Company that could play an important role in the company’s entry into the US market. Because of both companies having a significant presence in the global markets, this could be an area of substantial growth for Tilray. In addition, the company has also established CBD products and infused beverages that could be large revenue producers across the Canadian and American cannabis markets.
TLRY stock is up 83.54% year to date trading at $15.38 on May 18th. In February TLRY stock reached a high of $67.00 per share. At current market value, TLRY stock could have a significant upside. According to analysts at CNN Business TLRY stock has a 12-month median price target of $21.08 per share. In essence, this would be a 37.08% increase from current levels. For this reason, TLRY stock could be a Canadian cannabis stock to buy in May.
Cronos Group Inc.
Another Canadian cannabis company that missed earnings but could have some future potential is Cronos Group Inc. The company is an innovative global cannabis company with international production and distribution across five continents worldwide. Currently, Cronos has a portfolio of cannabis brands that’s met success with Canadian cannabis consumers. In May Cronos reported first-quarter 2021 net revenue of $12.6 million up to $4.2 million from Q1 2020. Unfortunately, the company took a gross loss of $3.0 million in Q1 with an adjusted EBITDA loss of $37.1 million in Q1 2021. The company attributes the losses to an increase in revenue and a decrease in inventory write-downs in the Rest of the World segment.
At the present time, Cronos has many prospective strategies that can generate growth in 2021. The company has a strong global supply chain and a joint venture with Natuera in Latin America that has exported THC cannabis derivatives from Colombia to the US for R&D purposes. In the US Cronos is reporting first-quarter 2021 revenue of $2.4 million. In general, this is primarily driven by the company’s new US hemp-derived CBD products.
CRON stock is trading at $7.59 per share in the first hour of trading on May 18th. With a high in February of $15.83, the stock is down 11.12% in the last 30 days. According to analysts at Tip Ranks CRON stock has a 12-month average price target of $9.10 per share. This would represent an increase of 19.74% from current trading levels. With this in mind CRON stock could be a top Canadian marijuana stock to watch this month.
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