Marijuana Industry Revenue Growth
Marijuana stocks in 2020 have performed well given the issues presented to the economy throughout the year. In reality, if you invested in a leading cannabis stock to buy in March or April after the crash you would have substantial gains from that investment. But many cannabis investors tend to believe marijuana stocks will grow aggressively in the next 5 years. In fact, some analysts have predicted the industry will grow to $37 billion in 4-5 years in the U.S alone. Provided that these predictions are correct this would mean the U.S., cannabis industry should more than double during this time period.
Currently in November leading U.S. marijuana companies are all reporting better than expected revenue for Q3 of 2020. In general, top cannabis companies like Curaleaf Holdings. Inc (CURLF Stock Report), and Cresco Labs Inc. (CRLBF Stock Report) are both reporting strong revenue growth in their 3rd quarter 2020 earnings. Actually, this has been the same revenue pattern other cannabis companies in the U.S are reporting. Since 2020 has been a catalyst for cannabis industry growth in the U.S., companies that have established a position in the sector will grow.
At this time the U.S. has 29 cannabis companies that generate industry sales of more than $10 million per quarter. And Canada currently has 14 cannabis companies in this category. In most cases, these companies can be viewed as leading marijuana companies.
A Pivotal 2020 Year For The Cannabis Industry
In reality, the November elections marked a pivotal point for the cannabis industry. It’s important to realize the American people continue to show cannabis legalization support in 2020. As can be seen by the continued passing of laws that legalize marijuana state by state. In due time it looks like the federal government will also begin to add legislation that will benefit cannabis. Presently next year looks to be the year we can usher in new laws like the Federal Banking Act, and decriminalization laws for marijuana.
Provided that the U.S. introduces a federally legal cannabis industry next year there are many companies trying to gain a market position. In the center, you have U.S. marijuana companies that have been establishing their business for quite some time. Above that, you have Canadian cannabis companies also positioning themselves to claim market share in the U.S. With this in mind let’s take a look at 2 marijuana stocks to buy for 2021.
Cannabis Stock To Watch #1: Acreage Holdings, Inc.
Acreage Holdings, Inc. (ACRHF Stock Report) is a multi-state operator of cannabis cultivation and retailing facilities in the U.S. The company’s national store brand the Botanist and its wide range of cannabis products are Acreages breadwinners. Recently Acreage reported earnings that showed 3rd quarter 2020 revenue growth of 42% compared to the same period in 2019. In addition, the company saw a 17% increase this quarter compared to the 2nd quarter of 2020.
Another show of strength for Acreage is their 36% same-store sales growth marling the seventh consecutive quarter of this type of growth. Currently, the company has 29 operational dispensaries across 11 states and is continuing to expand. Also, Acreage has a purchase agreement with Canopy Growth Corp (CGC Stock Report) that the two companies have begun to execute in 2020. In a part of the agreement, Acreage will begin the distribution of Canopy’s THC-infused beverages in the states for summer 2021.
ACRHF Stock was seeing gains in today’s trading up over 3% mid-day in the market. The stock has seen decent gains at the beginning of November climbing as high as $3.66 on November 9th. Recently, analysts have given ACRHF stock a five-year forecast of $15.69 this would be a 466.64% up from the current market value. For this reason, ACRHF stock is cannabis stock for your 2021 watchlist.
Cannabis Stock To Watch #2: TerrAscend Corp.
TerrAscend Corp. (TRSSF Stock Report) is a leading North American cannabis operator with vertically integrated operations in Pennsylvania, New Jersey, and California in addition to operating as a licensed producer in Canada. The company is a distributor of hemp-derived CBD products in the U.S. and has global distribution through Canada. TerrAscend also has investment deals with Canopy Growth, Canopy Rivers, and JW Funds. Currently, the company has 8 operational dispensaries nationwide with 5 focused on California. In detail, their facilities are known for highly trained cannabis consultants and extensive product selection. Additionally, at the beginning of November TerrAscend preannounced strong 3rd quarter 2020 guidance with net sales of $51 million. In fact, this represents a 90% year over year revenue growth.
- Top Pure-Play Marijuana Stocks To Watch This Month
TRSSF stock has continued in an upward trend for most of November. Starting the month trading at $5.95 a share its current price of $7.95 is close to its YTD high of $8. Currently, analysts have predicted TRSSF stock could reach $9.70 a share in a year’s time, with a 5-year forecast of $25.86. TRSSF stock is in a good position to continue growing with the U.S cannabis industry and abroad. Because of this TRSSF stock is a possible marijuana stock to buy for 2021.
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