Top Pot Stocks In 2021 While Marijuana Stocks Are Down
For people who invested in US cannabis stocks earlier this year, it could be difficult to look at your portfolio right now. At the present time, most of the best marijuana stocks to buy are trading at some of the lowest values they have seen so far in 2021. So now the question is will marijuana stocks start the recovery this quarter? There are a few factors that could start some upward momentum for top pot stocks before the year ends.
For one, federal cannabis reform could impact how the cannabis sector trades the same way it’s done in the past. Since November of 2020, the cannabis sector has been showing upside when congress introduced or passed legislation dealing with cannabis. One area of the cannabis sector that’s performed well and delivered gains for investors is ancillary marijuana stocks. In 2020 some of the largest gains in pot stocks came from ancillary cannabis stocks in the market.
Ancillary cannabis companies are those companies that support the cannabis market without touching the actual cannabis plant. Some of these companies supply the organic nutrients, hydroponic, and lighting equipment needed to produce cannabis. Others provide the online platforms that dispensaries and consumers use to find the best cannabis products in their area. In 2021 these companies continue to show substantial growth in the cannabis market.
Making Good Investments In The Best Marijuana Stocks
For investors looking to start a new position in cannabis stocks, these lower prices could be a good starting point in the market. Before investing it’s always important to do your due diligence on a company. Researching a company’s financial health and studying how a stock performs in the market are good ways to maximize your returns. For the most part, ancillary cannabis stocks have shown more stability than vertically integrated pot stocks.
Because of this, they may be better for investing long-term in marijuana stocks. As we start the third week in September these top cannabis stocks could be ready for some upside after large declines in last week’s trading. For investors, it could be a good time to start a watchlist of the top marijuana stocks right now. Here are2 leading ancillary cannabis stocks for your list in September.
Top Ancillary Marijuana Stocks To Watch In Q4 2021
Hydrofarm Holdings Group, Inc.
At the present time, Hydrofarm Holdings Group, Inc. is a leading distributor and manufacturer of hydroponics equipment and supplies for controlled environment agriculture. In general, the company offers a variety of equipment that facilitates the cannabis growing process. Specifically, the company offers high-intensity grow lights, climate control solutions, and growing media, as well as a broad portfolio of innovative and proprietary branded products. Notably, Hydrofarms has been in business for over 40 years helping growers in the US and Canada achieve premium-quality farming products.
In August, Hydrofarm reported its second-quarter 2021 results with net sales of $133.8 million up 46.7% year over year. As a result, gross profits increased 65% to $29.6 million or 22.1% of net sales. The companies adjusted EBITDA increased 127.5% to $16.2 million. In July the company announced it completed the acquisition of Aurora Innovations and its organic nutrients and grow media operations. On August 3rd the company announced the acquisition of a leading Canadian nutrient company Greenstar Plant Products, Inc. This acquisition continues Hydrofarms efforts to manufacture branded products in key CEA categories.
HYFM is trading on September 13th at $49.63 down 6.02% in the last half hour of trading. The stock has a 52-week price range of $40.38-$95.48 and is almost flat year to date. According to analysts at CNN Business HYFM stock has a 12-month median price target of $69.00 per share. In this case, this would represent an upside of 39.20% from its current trading price.
WM Technology, Inc.
Next on the list, is WM Technology, Inc. which could be considered a driving force behind much of the legislative change in the cannabis industry in the past 10 years. Otherwise known as Weedmaps this online listing marketplace is a major hub for cannabis consumers and cannabis companies. Primarily, the cloud-based SaaS solutions from WM Business provide an operating system for cannabis retailers. WM Business’ tools support compliance with the complex, and constantly evolving regulations in the cannabis industry. In August Weedmaps announced a multi-year partnership with Kevin Durant, Thirty-Five Ventures, and a sponsorship deal with Boardroom.
Notably, Weedmaps has an estimated 10 million monthly active users and approximately 18,000 business listings in the U.S. In August the company reported its second-quarter 2021 financials and 2021 outlook. Specifically, the company delivered second-quarter revenue of $47 million. In addition, total revenue grew 21% year over year with US revenue up 55% from the previous year. Also, the company reaffirmed prior full-year 2021 revenue of $205 million and adjusted EBITDA guidance of $50 million.
MAPS stock is trading at $14.04 on September 13, 2021, down 9.01% in the last month. The stock has a 52-week price range of $10.01-$29.50 and is up 9.87% year to date. According to analysts at Tip Ranks, MAPS stock has a 12-month average price target of $18.75 per share. In essence, this would represent an increase of 33.59% from its current trading price of $14.04. For this reason, these could be some of the best ancillary marijuana stocks to invest in for 2021.