Stock Market Volatility Affects Cannabis Stocks
As the stock market delivers one of the worst weeks of trading since October 2020 marijuana stocks have also suffered some losses during the week. Before Monday the 25th cannabis stocks were showing substantial gains in the market. But on Friday 29th most have not recovered to the highs established in trading last week.
As we head into February this recent drop could present the opportunity to get some of the best cannabis stocks to buy at a lower price point. One event that could stimulate the market next month would be the passing of a new stimulus bill. Currently, most cannabis companies are starting off in 2021 with more M&As and expansions into key cannabis markets. In reality, this could have a positive impact on future business growth.
With that in mind, researching some of these well-positioned companies could help investors find the most value in the cannabis industry. Doing your due diligence into a company before making an investment is good practice. Actually, this can help investors narrow down possibilities to the best options for investing needs. Although most investors like marijuana stocks for swing traders and day trading more people are seeing the long-term possibilities in the sector.
Cannabis Markets Continue Expanding In 2021
Whichever trading style you prefer marijuana stocks have been delivering for investors since the market crash of March 2020. While a turned around for the cannabis industry occurred in 2020 this year you hold even more advances for the U.S and global cannabis markets. Currently in the U.S. 36 states plus D.C have some form of legalized cannabis at the present time.
Because this number grew substantially in 2020 these new markets present an opportunity for the cannabis companies to establish a larger footprint in America. Also, in the Canadian market growth has been occurring because of the derivatives market. Most Canadian cannabis companies reported increased revenue due to cannabis derivatives sales after being introduced into the market.
But with marijuana stocks trading lower in the market are some of the smaller pot stocks holding more potential gains? There are smaller cannabis companies in the U.S. and Canada that have shown the possibilities for gains in 2021. In general, these pot stocks trade at lower levels in the market and have shown upward momentum for the month of January. For the purpose of researching the best marijuana stocks for gains in the market. Let’s take a deeper look at 2 top pot stocks under $2.
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- 2 Marijuana Stocks With Potential For February 2021
- 2 Marijuana Stocks To Watch This Friday For Possible Gains
Marijuana Stock To Watch:
- 4Front Ventures Corp. (OTC: FFNTF)
- Sundial Growers Inc. (NASDAQ: SNDL)
4Front Ventures Corp.
4Front Ventures Corp. is a national MSO and retailer, with a market advantage in mass-produced, branded cannabis products. Currently, the company manufactures and distributes a large portfolio with over 25 cannabis brands. In addition, 4Front distributes its brands through its retail outlets and also through its well-positioned Mission branded dispensaries. Currently, 4Front has operations in Illinois, Massachusetts, California, Michigan, and Washington state.
Actually, 4Front recently announced it gained approval to start construction on the new Mission dispensary in Brookline, Massachusetts. In detail, the company is expecting to be operational at the location by Q2 of 2021. In its last financial report of 2020 4Front saw Q3 pro forma revenue of $22.3 million an increase of 170% from the prior year. Also, in 2020 the company gave 2021 guidance with pro forma revenue of $170-$180 million. 4Front is also in the final construction of a 185,000 sq. ft. manufacturing facilities in Commerce, California.
FFNTF stock is up 18.47% so far in 2021 with a 52-week high of $1.26 on January 22nd. Currently FFNTF stock is trading at $1.09 on January 29th. At the present time, FFNTF stock has analysts at Stock Invest giving it a forecast of a 76.5% rise during the next 3 months. As 4Front continues expanding its presence into key markets it could have growth potential. For this reason, FFNTF stock is a top marijuana stock to watch under $2 a share.
[Read More] Will These Marijuana Stocks Be Top Gainers This Month?
Sundial Growers Inc.
Sundial Growers Inc. is a licensed producer that crafts cannabis using state-of-the-art indoor facilities. Currently, the Canadian cultivator uses a small-batch cannabis growing approach that’s proven successful. Recently Sundial launched high-quality cannabis derivative products under the Top Leaf brand.
Actually, this was a response to the rising consumer demand for solventless cannabis extracts. In detail, the most recent launch includes inhalable, branded cannabis flower, pre-roll, and vape cartridges. On January 29th Sundial announced a $100 million registered offering that has currently been taken well by investors on the days trading.
SNDL stock is up 75.29% since the start of 2021 and has a 52-week high of $1.70 back in February of 2020. Currently trading at $0.815 on January 29th and could hold more potential as we head into February trading. At the present time, SNDL has become popular amongst Robinhood and Webull traders and has gained upward momentum. With this in mind, SNDL stock is a cannabis stock to watch under $2 per share.
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