Marijuana Stocks To Watch In January 2021
As the first day of trading for the new year kicks off many investors have their eye on the best marijuana stocks to buy for 2021. In general, 2020 was a breakout year for the cannabis industry in the U.S. and around the world. Currently, the legalization of cannabis has advanced in America and other parts of the world. For example, Mexico will vote on becoming one of the world’s largest recreational cannabis markets sometime this year. So as 2021 starts which of these cannabis stocks are best positioned for gains this year? At the present time, U.S marijuana stocks to watch have been performing well going into January. As a whole, the industry made substantial gains at the beginning of December and held on to most of that value as the month progressed. In reality, 2020 marks the first year of gains for the cannabis industry since 2017.
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Given that many analysts believe U.S. pot stocks to watch will continue to see upward momentum in 2021 they could benefit your investment portfolio. As things seem to improve new cannabis companies have also begun to go public in 2020 with a handful of popular names entering the market. Some new IPOs to look out for are Hydrofarm Holdings Group, Inc. (HYFM Stock Report), and the popular online platform Weedmaps being acquired by Silver Spike Acquisition Corp. (SSPK Stock Report). As it stands market sentiment continues to be creating a better environment for gains in the cannabis sector.
Cannabis Stocks Gain Investor Attention
While 2021 begins many investors are finding themselves more comfortable with marijuana stocks to buy and invest in the cannabis industry. Although top pot stocks have been known for high amounts of market volatility, they have shown better stability in the latter part of 2020. As more investors embrace cannabis investing from large institutions to individual shareholders these cannabis stocks can continue to flourish. Recently more cannabis companies have taken advantage of the newfound access to capital and sold equity and improved debt structure. In essence, this would give cannabis companies more capital to continue progressing in 2021.
Narrowing the playing field in the cannabis sector takes some research and due diligence on the part of investors. In reality, finding companies with solid business models and strong balance sheets is a good place to start. Currently, most of the top marijuana stocks to watch have performed well in their latest financials and have seen record revenue with increasing cannabis demand. With the intention of focusing on two cannabis companies that could add value to your portfolio let’s look at 2 of the best cannabis stocks for January 2021.
Marijuana Stocks To Watch Now: GrowGeneration Corp.
GrowGeneration Corp. (GRWG Stock Report) is currently the largest hydroponics supplier in the country with 36 retail and distribution centers. Although GrowGen is an ancillary marijuana company it is one of the best performing pot stocks in 2020. In essence, the company has managed to grow substantially in 2020 making a handful of acquisitions and increasing its footprint in the U.S. In addition, GrowGen has reported record revenue in its last Q3 2020 results of $55 million.
For the first nine months of 2020, the company’s revenue rose 142% to $131.4 compared to $54.3 million the year prior. In fact, the company’s gross profit for the first nine months of 2020 was 27%. Going into 2021 GrowGen is giving full 2021 guidance of $280-$300 million. In essence, this is nearly double the 2020 guidance of $185-$190 million. Currently, the company continues rapid growth in key markets of the cannabis industry. At the present time, this has resulted in GrowGen’s 11th consecutive quarter with record revenue.
GRWG stock is up 880.98% in 2020 and could continue posting gains in January 2021. With a 52-week high of $43.14 last year it is set to open trading around $41.50 premarket. As one of the best performing cannabis stocks of 2020 many investors believe it could continue seeing gains in the market. While GrowGen continues expanding its retail locations in new cannabis markets GRWG stock is one of the best marijuana stocks to watch for 2021.
Marijuana Stocks To Watch Now: Harvest Health & Recreation Inc.
Harvest Health & Recreation Inc. (HRVSF Stock Report) is a vertically integrated multistate operator that’s been operating since 2011. Currently, the company is in 9 states with 37 operating retail locations. This includes 15 dispensaries in its home state of Arizona a rapidly growing recreational market. Last year Harvest’s last financial report in Q3 OF 2020 shows revenue up 86% to $61.6 million from the same period in 2019. In detail, the company increased its 2020 guidance to $225 million from $215-$220 million. As Arizona continues to grow this year Harvest is positioning to capitalize off the cannabis market there. Although the company has not yet achieved profitability it could reach that milestone in 2021.
HRVSF stock is down 31.52% year-to-date with a high of $3.64 back in January 2020. Currently trading around $2.16 to start 2021 HRVSF stock could have some upside for January. At the present time, analysts have given HRVSF stock a 12-month price forecast of $3.19 up 47.69% from current levels. For this reason, HRVSF stock is a top marijuana stock to watch in January 2021.
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