Top Marijuana Stocks For Summer Watchlist
After hitting fresh lows in July, are the top marijuana stocks a good buy? Like the rest of the market, the majority of cannabis stocks saw fresh lows to begin the summer. For new investors wishing to enter the cannabis sector, it could be time to start looking for a way in. Although many analysts think the market will keep down, it could be time to start a watchlist before the market starts to rise.
One sector that has experienced a significant fall is cannabis penny stocks. Any company that trades for less than $5 is considered a penny stock, for those investors who are unaware. Many traders consider penny marijuana stocks to be higher risk/reward short-term investments because of their reputation for being among the cannabis industry’s most volatile divisions. Since the best cannabis stocks to buy have shown considerable volatility, many cannabis investors have been trading these companies on a short-term basis. Active traders generally use day trading and swing trading strategies to profit from marijuana stocks.
In Canada, LPs are now having difficulty turning a profit, while the market value has been negatively impacted by delays in US federal cannabis regulation. Canadian cannabis companies have attracted much more investor attention since they trade on the main US stock markets. As a result, any sector momentum might begin with Canadian cannabis stocks before spreading to the rest of the market. Let’s examine three of the top Canadian marijuana stocks for your July list in more detail.
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Top Canadian Marijuana Stocks To Watch In July 2022
- Cronos Group Inc. (NASDAQ: CRON)
- Aurora Cannabis Inc. (NASDAQ: ACB)
- Sundial Growers Inc. (NASDAQ: SNDL)
Cronos Group Inc.
Cronos Group Inc., one of the largest cannabis corporations in the world, is a multibillion-dollar cannabis distributor with operations on five continents. The cannabis brands that Cronos has created have received positive feedback from Canadian customers. Cronos also said that it spent $110.4 million to purchase a 10.5 percent stake in PharmaCann. Among other things, the US federal cannabis legalization status will affect the purchase. The deal would include PharmaCann’s 23 dispensary locations and six production facilities. Earlier this year, the company debuted a brand-new line of cannabis edibles in two flavors. These unusual edibles appear to be popular among adults, according to a study.
According to the company’s May results release, net revenues for the first quarter of 2022 were $25 million, a 99 percent increase over the prior year. Net revenues in Israel also grew 263 percent to $9.1 million from the previous year. The company’s net loss during the first quarter of 2022 was $32.7 million, down $129 million from the first quarter of 2021. Due to an increase in cannabis flower sales in the ROW industry, gross revenues in the first quarter of 2022 reached $6.9 million. It’s significant to note that the company’s Adjusted EBITDA for the first quarter of 2022 was minus $18.9 million, an increase of $17.7 million from the comparable period in the prior year. In June the company partnered with Geocann to leverage VESIsorb delivery technology for faster absorption.
On July 1st CRON stock closed at $2.86, with a 52-week price range of $2.57-$8.595. CRON stock has a 12-month consensus forecast price target of $3.49 per share, according to CNN Business analysts. This projection represents a 21.55% increase over the stock’s most recent trading price of $2.86.
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Aurora Cannabis Inc.
Aurora Cannabis Inc., a Canadian company, cultivates and exports medical marijuana abroad. Reliva, a CBD-producing business in the US, was acquired by the corporation, marking its debut in the US cannabis industry. The collection of San Rafael ’71 cultivars owned by Aurora has grown by three more. The business transported marijuana worth $8 million to Israel on the international front. The company has finished the first shipment to the French medicinal cannabis pilot program and is presently repairing its bank sheet. Additionally, the business strengthened its position as the market leader in Germany with the launch of its first manufacturing and production facility with EU-GMP certification on May 18.
When the company reported its third-quarter fiscal 2022 results on May 12, it retained its position as the top Canadian LP in high-margin foreign medical sales. Medical marijuana’s net sales reached $39.4 million, an 8 percent rise from the previous year. Additionally, the third quarter of 2022 saw $50.4 million in total cannabis net revenue, a 17 percent decline from the second quarter. From $20.9 million in the second quarter to $12.3 million in the third, adjusted EBITDA losses dropped. The corporation now has a robust balance sheet and has already bought back $141.4 million in convertible notes. In June, Aurora Cannabis repurchased convertible notes for $20 million.
ACB stock closed at $1.35 on July 1st down 55.97% in the past month. Currently, the stock has a 52-week price range of $1.26-$9.54 down 75.05% year to date. According to analysts at CNN Business, ACB stock has a median price target of $2.68 per share. This would be an upside of 98.53% from its last trading price of $1.35.
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Sundial Growers Inc.
Located in Canada, Sundial Growers Inc. cultivates and distributes marijuana for adult use. Presently, the business produces and sells inhalable goods including flower, pre-rolls, and vapes. Under the Top Leaf brand, Sundial has debuted the first Canadian Caviar cone. The Forbidden Lemon Caviar Cones will be the first caviar cone product to reach the Canadian market, according to the business. Sundial’s specialized innovation pipeline for premium inhalables in the Canadian cannabis industry has grown as a result of this announcement. Sundial purchased Alcanna, the biggest privately owned liquor retailer in Canada.
On May 16th, Sundial published its first-quarter 2022 financials. These figures showed $17.6 million in net revenues, which included one day’s worth of revenue from the Alcanna acquisition. If the acquisition had occurred on January 1st, Alcanna’s first-quarter 2022 sales of $162.5 million with a gross margin of $36.3 million would have been combined with Sundial’s. In Q1 2022, Sundial’s gross margin increased to $3.4 million from a $3.5 million loss in Q1 2021. The business lost $38 million in Q1 2022 as opposed to $134.4 million the prior quarter.
SNDL stock closed at $0.3327 on July 1st down 14.69% in the past five trading days. The stock has a 52-week price range of $0.29-$0.96 and is down 42.47% year to date. According to analysts at CNN Business SNDL stock has a 12-month consensus price target of $0.50 per share. In this case, this would represent an increase of 50.24% from its last trading price of $0.3327.
Best Pot Stocks To Watch And Investing In 2022
The present market volatility makes it difficult for investors to start long-term investments. Given their high price volatility, Canadian LPs could be a better choice for short-term investments. Do your own research on a company and look into press releases and profitability to find the greatest performers. Additionally, a lot of short-term traders use chart patterns and technical indicators to increase their chances of making profitable trades. These might be some of the top Canadian marijuana stocks to watch as we start a new trading week.
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