Top Canadian Cannabis Stocks For Q1 2022
To begin the new year top marijuana stocks to buy started with some upward momentum in 2022. This is important for the cannabis sector because of substantial declines experienced to end last year’s trading in December. In 2021 most Canadian cannabis LPs saw a six-month streak of losses in the market. This is mostly because of delays with US federal cannabis legalization. In general, many investors and cannabis companies believed Congress would end federal marijuana prohibition in 2021. Although this caused a major downturn in the market many leading cannabis companies continued to show revenue growth in last year’s earnings.
Additionally, for the next five years, many analysts forecast the cannabis industry to more than double in size. In the past two years, many leading Canadian cannabis companies began executing plans to enter the US cannabis market. Some of these companies made acquisitions of US companies that give them access to the US markets, while others established entry through CBD sales in the US. As 2022 begins the possibility of establishing federal marijuana legalization increases again this year.
With upcoming elections, many politicians will be pushing for federal cannabis reform to please American voters. As it stands more than two-thirds of the country believes marijuana should be legalized. In addition, on the state level, the US has continued to grow as new states establish legal medical and recreational markets. In 2021 the Canadian market also grew as well with the industry bringing in record sales as the year progressed.
Top Pot Stocks To Watch In January And Making Better Trades
Before investing in cannabis stocks, it’s important to do your own research on a company. Looking into a company’s financials and following how a stock performs in the market can help you become a successful trader. Because the cannabis sector is known for having significant market volatility finding a good entry point can help you achieve profitable trades. As the first week of trading begins let’s look at 2 top Canadian cannabis stocks for your January 2022 watchlist.
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Best Canadian Marijuana Stocks For January 2022 Watchlist
- Tilray, Inc. (NASDAQ: TLRY)
- Cronos Group Inc. (NASDAQ: CRON)
Tilray, Inc.
Tilray, Inc., with operations in Canada, the United States, Europe, Australia, and Latin America, is now the world’s largest cannabis consumer packaged goods company. The corporation recently integrated in the Canadian market, transforming it into one of the world’s most profitable cannabis businesses. Tilray is gearing up to enter the US market while simultaneously expanding its worldwide reach. Tilray also completed the first harvest and delivery of medical cannabis grown in Germany. In both the Canadian and American markets, the business has produced CBD products and infused beverages with the potential to earn considerable income. In October, Tilray and Great North Distributors launched a distribution collaboration to boost adult cannabis sales in Canada.
Tilray recently acquired majority ownership in MedMen convertible notes, indicating a move into the US cannabis market. Tilray released its financial results for the second quarter of the fiscal year 2022, reporting net sales of $168 million, up 43 percent year over year. Net beverage alcohol sales were $15 million, while cannabis revenue was $70 million, thanks to the Sweetwater purchase. Tilray maintained its #1 market share in Canada, including top rankings in cannabis flower and pre-rolls. The company lost $34.6 million in the first quarter and had a $12.7 million Adjusted EBITDA. The company will release its second-quarter fiscal 2022 financial results before the market opens on January 10th.
TLRY Stock Performance
The stock of TLRY ended at $7.39 on January 3rd, up 5.12% for the trading day. The stock’s 52-week price range is at $6.97-$67.00. TLRY stock has a 12-month median price target of $12.00 per share, according to CNN Business analysts. This would be a 62.60% rise over the last trade price of $7.39. At the present time, TLRY stock could be a top Canadian marijuana stock for 2022.
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Cronos Group Inc.
Cronos Group Inc. is a global cannabis producer and distributor with activities across five continents. The company has developed a cannabis brand portfolio that has gotten positive feedback from Canadian cannabis customers. Cronos also said that it paid $110.4 million for the right to purchase a 10.5 percent stake in PharmaCann. The acquisition will be contingent on several factors, including the status of federal cannabis legalization in the United States. The transaction would comprise PharmaCann’s six production facilities and 23 dispensary locations. Earlier this year, the company introduced a new line of dual-flavor cannabis sweets. The taste of these new candies is said to be popular among adults.
Cronos’ earnings fell short of estimates in the second quarter of 2021. The company had net revenues of $15.6 million in the second quarter of 2021, up $5.7 million from the previous quarter. Cronos lost $15.8 million in the second quarter of 2021, an increase of $12.9 million from the same period the previous year. The loss is attributed to a $12 million increase in inventory write-downs in the ROW sector in Q2 2021, according to the company. The company’s adjusted EBITDA loss in the second quarter was $49.8 million, up to $22.8 million from the second quarter of 2020.
CRON Stock Performance
On January 3rd, CRON stock finished at $4.20, up 7.14% for the trading day. The stock is down 43.52% year to date, with a 52-week price range of $3.943-$15.83. CRON stock has a 12-month consensus forecast price target of $5.10 per share, according to CNN Business analysts. This projection represents a 21.70% increase over the stock’s most recent trading price of $4.20. As the cannabis sector begins to show upside CRON stock could be a top Canadian cannabis stock to watch right now.
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