Top Canadian Cannabis Stocks In 2021
In mid-August, the best marijuana stocks are trading at some of their lowest price points in 2021. One area that’s been hardest hit with market declines is top Canadian cannabis stocks. In the first quarter of 2021 the best Canadian marijuana stocks to invest in saw significant upside until February 10th. Since then, the cannabis sector has experience declines for several months. In the meantime, leading cannabis companies are reporting strong revenue growth in this round of earnings.
Although this has not currently turned into market gains it does show substantial growth in the cannabis market. For the most part, Canadian cannabis companies have grown in their own market and established some form of entry into the US one as well. As it stands federal lawmakers have introduced several bills like The SAFE Banking Act but have not advanced the bill through Congress for a vote.
Now with the Delta variant taking center stage as national crisis cannabis could take a backseat to these important issues that need to be addressed. This means Canadian cannabis companies will have to wait to enter the US cannabis market. This has put a strain on investors who expected the US to act much quicker dealing with the subject of cannabis legalization and reform. Now some cannabis investors are looking for other areas of the market for returns.
Factors Affecting The Broader Markets And Pot Stocks
Another factor that could affect the markets this week is the Taliban takeover in Afghanistan. After 20 years and teaching an army of 300,000 troops the Afghan government has done nothing so far to stop the estimated 75,000 Taliban troops from taking over the country. Unfortunately, this could have a significant effect on market behavior and could bring down the cannabis sector even further. In some ways, this drop in the cannabis sector could be an opportunity for investors to find top marijuana stocks at lower entry levels.
For investors not familiar with cannabis stocks they are known for being some of the more volatile stocks in the market this means it’s important for investors to do their due diligence on a company before investing. Researching a company’s financials and studying how the stock performs in the market can help you achieve the best returns on your investments. With this in mind let’s take a closer look at what could be 3 of the top Canadian marijuana stocks to buy in mid-August.
Best Canadian Marijuana Stocks To Watch This Week
- Village Farms International, Inc. (NASDAQ: VFF)
- Tilray, Inc. (NASDAQ: TLRY)
- Aurora Cannabis Inc. (NASDAQ: ACB)
Village Farms International, Inc.
At the present time, Village Farms International, Inc. and its subsidiaries, produce, market, and distributes greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. In addition, the company has also begun focusing on opportunities in the cannabis and CBD segments in Canada and the US. Specifically, Village Farms wholly-owned subsidiary Pure Sunfarms is one of the largest cannabis operations in North America. In July Pure Sunfarms received a cannabis cultivation license for a delta 2 greenhouse. This will increase production capacity by 50%.
Pure Sunfarms reported second-quarter 2021 results achieving 135% year over year growth in retail branded sales. The company has total net sales for the first six months of $42.2 million an increase of 70% from the same period in 2020. Pure Sunfarms achieved 38% sequential net sales growth and 192% sequential adjusted EBITDA growth. The company has become the top-selling licensed producer of dried cannabis flowers in Ontario, Alberta, and British Columbia.
VFF stock closed on August 13th at $8.89 down 10.29% in the last five days. This is partly due to the loss the recently reported in the quarter. According to analysts at CNN Business VFF stock has a 12-month median price target of $18.00 per share. This would represent a gain of 101.79% from its last trading price of $8.92.
Tilray, Inc. is a leading global cannabis consumer packaged goods company with operations in Canada, the US, Europe, Australia, and Latin America. Recently, the company has undergone one of the biggest mergers in the Canadian market to become one of the largest revenues producing cannabis companies in the world. Tilray is positioning itself to enter the US market and is also expanding its international presence.
In recent events, Tilray completed its first harvest and delivery of medical cannabis grown in Germany. Additionally, the company has established CBD products and infused beverages that could be large revenue producers across the Canadian and American markets. In July, Tilray reported its 2021 fiscal year and Q4 results with net revenue up 27% year over year to $513 million. The company produced a net income of $33.6 million and adjusted EBITDA of $12.3 million. Tilray increased its revenue by 55% in Q4 and holds the #1 share in Canada.
TLRY stock closed at $13.30 on August 13th down 7.77% in the last five days. The stock has a 52-week price range of $4.410-$67.00 and has declined by 18.50% in the past month. According to analysts at Tip Ranks TLRY stock has a 12-month average price target of $19.68 per share. In essence, this would represent an upside of 47.97% from its last trading price.
Aurora Cannabis Inc.
In Canada, Aurora Cannabis Inc. is a company that produces and distributes medical cannabis products globally. In May Aurora announced its third-quarter fiscal 2021 results with domestic medical net revenue at $26.9 million. Also important, the company had strong international medical revenue of $9.4 million. For the third quarter of fiscal 2021, the company has total cannabis net revenue of $58.4 million.
In recent events, the company announced its entry into the US market through the acquisition of Reliva a CBD producing company in America. Aurora also expanded its San Rafael ’71 portfolio with the launch of 3 new proprietary cultivars. In July, the company delivered an $8 million shipment of cannabis to Israel.
ACB stock closed on August 13th at $6.78 19% in the last month. According to analysts at Market Beat, ACB stock has a consensus price target of $7.58 per share. This would represent an increase of 11.8% from its last trading price. With a possible pullback continuing this week these top Canadian marijuana stocks could be on the radar right now.