Canadian Marijuana Stocks and Their Market Potential
Are you looking for marijuana stocks to invest in right now? For a few months, the cannabis sector has been showing declines in market value. In general, this has created an opportunity for new investors to start positions at lower trading levels. One area of the cannabis market that has seen the most volatility in 2021 is Canadian marijuana stocks to buy in June.
After establishing new highs in February most leading Canadian cannabis stocks have seen the deepest declines in the market. But the reintroduction of the More Act on Capitol Hill could be a future catalyst for the cannabis sector. Since 2020 most investors have been betting on federal cannabis reform in the US. This is because once the federal government legalizes cannabis Canadian cannabis companies have a better chance of being able to expand into the American cannabis market.
According to analysts, the US cannabis industry will be one of the largest revenue producers worldwide. Currently, many Canadian companies have already established some form of entry into the US market once it’s legal. Others have established CBD sales in the US as a way of generating sales and gaining access to the American market. Also, in Canada, the derivatives market has helped increase cannabis demand up north.
The Growing Cannabis Industry In 2021
In reality, the next five years could produce significant increases in revenue growth for the cannabis market. As a result, the best-positioned cannabis companies could see substantial growth and deliver gains in the market for investors. But before investing in cannabis stocks investors should always do their own research into the top companies to see which ones are performing the best.
In May most Canadian marijuana stocks began showing some upside after reaching some of their lowest prices since January. In June it’s possible, this market trend could continue as things improve in the cannabis sector. As it stands investing in top marijuana stocks is considered a risky investment because of the market volatility in the sector. In general, this makes doing your own due diligence as an investor very important before pulling the trigger on a position.
Essentially researching a company’s financial results and watching how the stock performs in the market can help you establish the best entry point for your investment. Now in June with some upward momentum to start the week and federal reform on the table, Canadian marijuana stocks could produce gains for investors. For this reason, let’s take a closer look at 2 top Canadian marijuana stocks to add to your watchlist in June.
Marijuana Stocks To Watch
One of the leading Canadian award-winning producers of cannabis products for the global industry is HEXO Corp. Currently serving the Canadian recreational market with an extensive brand portfolio. The company is also producing medical sales in Canada, Israel, and Malta. In the US HEXO serves the Colorado market with Truss CBD USA a joint venture with Molson Coors. On June 1st HEXO announced it made the closing arrangements for acquiring Zenabis Global Inc. For some background, Zenabis is a Canadian licensed cultivator of recreational and medical-grade cannabis. Specifically, this deal will help solidify the future expansion for HEXO in Canada, Europe, and other markets.
In May HEXO also announced the acquisition of Redecan Canada’s largest privately-owned cannabis producer. In detail, the two companies combined would hold the number one spot in the Canadian recreational market. Additionally, in its most recent financials, HEXO released second-quarter 2021 positive adjusted EBITDA and a 94% increase in net revenue from Q2 fiscal 2020. In particular, the company saw total net revenue increase to C$32.8 million. HEXO’s non-beverage Canadian adult-use revenue increased by 72%. Also, adult-use net revenue increased by 10.5% in Q2 of 2021.
HEXO stock is trading at $7.05 On June 2nd around 2 pm EST. In February HEXO stock reached a high of $11.04 and is currently up 86.68% year to date. According to analysts at CNN Business HEXO stock has a 12-month median price target of $8.03 per share. In essence, this would represent an increase of 14.08% from current levels. For this reason, HEXO stock is a top Canadian cannabis stock to add to your watchlist for June.
Neptune Wellness Solutions Inc.
Neptune Wellness Solutions Inc. recently completed the transition to a fully integrated consumer packaged goods company. Primarily, the company is launching a lineup of CBD beverages in the US which includes flavored teas and lemonades. In particular, over the course of the year, Neptune’s transitioned from a B2B cannabis and hemp extraction company to a consumer products company. Now, focusing on consumer cannabis products the company is producing cannabis, nutraceuticals, beauty, and personal care, and organic food & beverage products.
In 2021 Neptune’s has secured a new supply agreement with Alberta Gaming, Liquor, and Cannabis. This deal expands its products into over 1600 retailers. Generally speaking, Neptune can now sell recreational cannabis products through its Mood Ring and PanHash brands across British Columbia, Alberta, Ontario, and Quebec. At the present time, Neptune appears to be adapting to consumer preference and demand and bringing new products to several growing markets.
NEPT stock is trading at $1.3614 On June 2nd down 15.38% year to date. In February NEPT stock reached a new high of $3.60 and is currently trading flat for the past month. According to analysts at CNN Business NEPT stock has a 12-month median price target of $2.73 per share. This would represent an increase of 99.90% from current trading levels. With this in mind, NEPT stock could be one of the best Canadian marijuana stocks to buy in June 2021.
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