Cannabis Stocks As The Market Recovers

Today in the market top marijuana stocks recovered some of the value lost in the last couple of trading days. After a significant plunge in the market, the best cannabis stocks to buy have seen upward momentum after coronavirus Delta variant fears ravished most of the market yesterday. Currently, investors fear the market is at risk of a significant correction and that economic growth has already peaked in 2021.

But the cannabis sector has a few catalysts that could provide upside this year. For one federal marijuana legalization and reform have been a hot topic since the presidential election. Last week Senate Majority Leader Chuck Schumer unveiled a draft of the Cannabis Administration and Opportunity Act. But as things continue to slowly progress on Capitol Hill some analysts are not basing their investments in cannabis solely on the federal legalization narrative.

On the state level, the cannabis industry has been growing at a rapid rate. As more states implement cannabis markets leading marijuana companies are moving in quickly to establish their market share. As many top-tier marijuana companies are scheduled to report earnings in the next few weeks it could be time to add these cannabis stocks to your watchlist for July and August.

Bullish Pot Stocks To Watch In July

Many investors begin to see how bullish the cannabis market is behaving and its effects on revenue growth for MSOs and ancillary companies. A major shift is happening across the US from the illicit market to the state-legal cannabis market. In 2021 new states like Connecticut, New Mexico, New York, and Virginia have approved cannabis legalization.

For cannabis investors, there are several areas of the market that may produce returns with strong earnings. Ancillary cannabis companies are those companies that support the cannabis industry without touching the plant. They continue to grow alongside the cannabis market and could be an area of value for investors.

[Read More] These 3 Marijuana Stocks May Be The Winners For You?

Another area that could produce momentum in the market is mid-size MSOs across America. Some of these smaller cannabis companies are well-positioned for growth for the next five years. As an investor, it’s always important to do your due diligence and research the companies before investing. With this in mind, let’s take a closer look at 2 top marijuana stocks to add to your list this week.

Top Marijuana Stocks To Watch Right Now

  1. High Tide Inc. (NASDAQ:HITI)
  2. Acreage Holdings, Inc. (OTC:ACRHF)

High Tide Inc.

High Tide Inc is a leading cannabis enterprise operating across Canada, Europe, and The United States. With over a decade of experience in the cannabis industry, the company has a portfolio of companies that deal with different aspects of the market. Their portfolio includes a dominant Canadian cannabis retail chain, a global manufacturer, and a distributor of cutting-edge smoking accessories. At the present time, the company has also established the largest accessories eCommerce platform that services an international market. High Tide is positioning for international expansion through emerging legal markets.

High Tide reported its second-quarter 2021 results with revenue increasing 99% to $40.9 million. With this, the company saw gross profit margins for Q1 of $4.7 million compared to $1.8 million the year prior. During the second quarter, the company completed the acquisition of Smoke Cartel Inc and launched the sale of hemp-derived CBD products under its Grasscity brand. Recently High Tide opened its 20th Ontario retail store and continues its expansion into the US through the acquisition of online retailer DankStop.

High Tide Inc. Logo (CNW Group/Meta Growth Corp.)

HITI stock closed at $6.36 on July 20th up 111.68% year to date. In February the stock reached a high of $13.29 and has lost 15.20% in the past 30 days. According to analysts at Wallet Investor HITI stock has a 1-year price forecast of $10.747 per share. As the company continues growing in Canada and the US HITI stock could be a top marijuana stock for your watchlist right now.

[Read More] Looking For Marijuana Stocks To Buy Right Now? 2 Predicted To See Triple-Digit Percentage Gains

Acreage Holdings, Inc.

Acreage Holdings, Inc. is a US MSO of cannabis cultivation and retail facilities across America. Presently, Acreage is focusing on improving profitability, controlling costs, and accelerating organic growth. The company has a partnership and a possible acquisition with Canadian giant Canopy Growth Corporation (NASDAQ:CGC). Because of this partnership Acreage could play an instrumental role in the Canadian cannabis companies’ entry into the US market. The company has established a large presence in New York and New Jersey and could see significant growth in the coming years from the growing markets there.  In The future analysts are expecting New York to become one of the largest US cannabis markets.

At the present time,  Acreage operates the maximum number of dispensaries allowed in New Jersey and is working on completing its New Jersey cultivation facility.  Acreage announced its first-quarter 2021 results with consolidated revenue of $38.4 million an increase of 58% compared to Q1 2020. The company’s same-store sales grew 16% making the ninth consecutive quarter of double-digit same-store sales growth.  Although revenue grew the company had a net loss in the first quarter of $7.8 million an improvement compared to the net loss of $172 million in Q1 of 2020.

ACRHF stock closed at $3.44 on July 20th up 10.97% year to date. In February ACRHF stock reached a high of $9.00 and has declined by 45.57% in the last six months.  According to analysts at Market Beat ACRHF stock has a consensus price target of $7.00 per share. This represents an increase of 103.5% from its last trading price of $3.44. For this reason, ACRHF stock could be a top cannabis stock for your list in July.

[Read More] Top 10 Marijuana Stocks To Watch During Earnings Season

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