Investing In Top Cannabis Stocks In 2021
Are you looking at marijuana stocks to buy wondering which cannabis sector will perform the best? In July most top cannabis stocks saw some volatility in the market. Heading into 2nd quarter earnings leading cannabis companies have continued to grow and expand at a rapid pace. The cannabis industry is expanding across the US as more states legalize marijuana for medicinal and recreational use.
On the federal level, Senate Majority Leader Chuck Schumer is working to gain support for the Cannabis Administration and Opportunity Act in Congress. In light of future possible growth in the cannabis market more investors are looking for the best ways to capitalize on the growth. One area of the cannabis sector that could be positively affected by strong financials is Canadian marijuana stocks.
At the top of the year, the Canadian cannabis sector rallied in the market until almost mid-February. Since then, Canadian pot stocks have seen a significant decline in value and have consolidated at much lower values for several months. On the other hand, in Canada cannabis sales increased 68.1% year over year in May to $313.3 million.
Possible Catalyst For Top Canadian Cannabis Stocks In 2021
This upward trend in sales has been growing for several months in the Canadian cannabis market. With that and the possibility of entry into the US cannabis market some Canadian marijuana stocks could be positioned for returns in the market. With this in mind, we can take a closer look at the best Canadian marijuana stocks to watch as earnings approach.
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For investors, it’s always important to do your research on companies before investing. In general, knowing a company’s results and watching how the stock performs in the market can help you make the best investment decisions. To get some closer details about these companies let’s look at 4 Canadian marijuana stocks to add to your watchlist next week.
Best Canadian Marijuana Stocks In 2021
- Tilray, Inc. (NASDAQ:TLRY)
- Canopy Growth Corporation (NASDAQ:CGC)
- Cronos Group Inc. (NASDAQ:CRON)
- Sundial Growers Inc. (NASDAQ:SNDL)
Tilray, Inc.
Tilray, Inc. is a leading global cannabis consumer packaged goods company with operations in Canada, the US, Europe, Australia, and Latin America. After one of the biggest mergers in Canada, Tilray is one of the largest revenue-producing Canadian cannabis companies in the world. To clarify, Tilray missed its earnings estimates and took a significant hit in market value following February highs. But Tilray is positioning itself to enter the US market and is also expanding its international presence.
Recently, the company completed its first harvest and delivery of medical cannabis grown in Germany. This marks the first cannabis cultivated at Tilray’s state-of-the-art 6000 square meters grow facility in Germany. In the meantime, the company has established CBD products and infused beverages that could be large revenue producers across the Canadian and American markets. Tilray is scheduled to report fourth-quarter and fiscal 2021 financial results on July 28, 2021, before the market opens.
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Canopy Growth Corporation
Canopy Growth is one of the largest producers and distributors of cannabis and cannabis-derived products in Canada. The company sells cannabis and hemp-derived products primarily in Canada, the US, and Germany. Canopy has established a partnership with terms for acquisition with Acreage Holdings, Inc. (OTC:ACRHF). In addition, the company has a US distribution agreement with Southern Glazers Wine & Spirits for a CBD beverage portfolio. Also, in Canada, the company increased its brand portfolio with the acquisition of one of the countries premium cannabis brands The Supreme Cannabis Company, Inc.
Canopy released its fourth-quarter fiscal year 2021 net revenue of $148 million. Total net cannabis revenue was $101 million in Q4 2021 and $379 million in full-year 2021. It’s important to note that Canopy saw a net loss in Q4 2021 of $617 million. But Canopy did achieve 37% revenue growth in full-year 2021 and maintains the #1 market share of the total flower category in Canada. The company is expected to release its first-quarter fiscal year 2022 earnings on August 6, 2021, before the market opens.
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Cronos Group Inc.
Cronos Group Inc. is a global cannabis company with international production and distribution across five continents. Currently, Cronos has created a portfolio of cannabis brands that have gained popularity with Canadian cannabis consumers. The company missed earnings estimates in its latest financials, which has affected its stock price in the market. In detail, the company reported first-quarter 2021 net revenue of $12.6 million up to $4.2 million from Q1 2020. The company saw a gross loss of $3.0 million in the first quarter with an adjusted EBITDA loss of $37.1 million in Q1 2021.
Cronos announced it purchased options to acquire a 10.5% stake in PharmaCann for $110.4 million. The deal will be executed under various factors including the status of US federal cannabis legalization. In particular, the deal would involve PharmaCann’s six production facilities and 23 dispensary locations. With this announcement CRON stock has begun to see some market momentum. The company will report its second-quarter 2021 results on Friday, August 6, 2021, before the market opens.
Sundial Growers Inc.
One reason Sundial Growers makes this list is that in the first quarter of 2021 the company surprised investors with its first positive earnings report. As it stands, the company saw first quarter 2021 earnings of C$1.7 million compared to a loss of C$32.7 million sequentially. In addition, the company reported a first-quarter positive adjusted EBITDA of C$3.3 million compared to a loss of C$5.6 million sequentially. Also, in 2021 Sundial delivered high-quality inhalable cannabis and invested in its library of premium cannabis strains. In fact, the company now managed to harvest its highest potency flower with Top Leaf’s LA Kush Cake producing an excess of 28% THC.
Another element the company has for investors is Sundial’s company investments. In particular, the company realized C$2.8 million in interest and fee revenue from long-term loans to third parties. As of now, Sundial has C$12.9 million in realized and unrealized gains from investments in securities. Recently Sundial has been getting renewed interest from Reddit and Robinhood investors this summer. In Canada Sundial is one of the few cannabis companies that managed to beat earnings estimates in 2021. The company is expected to announce financial results on August 12, 2021.
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