Top Cannabis Stocks And Current Market Volatility
Are the top marijuana stocks still a good investment now that they have started to recover in July? Similar to the rest of the market, the majority of cannabis stocks saw fresh lows at the beginning of the summer. However, the sector has already partially recovered from this month’s trading decline. New investors who wish to get into the cannabis industry may want to start exploring possibilities now. One area that has shown significant upside in past years are Canadian pot stocks.
Delays in US federal cannabis legalization in 2021 had a substantial impact on market value, and LPs are now struggling to turn a profit in Canada. Canadian cannabis firms have attracted far more investor interest since they trade on the main US stock markets. For this reason, any sector momentum may begin with Canadian cannabis businesses before spreading to the rest of the market. Before August, let’s take a deeper look at three of the best Canadian marijuana stocks for your watchlist.
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Canadian Marijuana Stocks To Watch In July 2022
- Tilray Brands, Inc. (NASDAQ: TLRY)
- HEXO Corp. (NASDAQ: HEXO)
- High Tide Inc. (NASDAQ: HITI)
Tilray, Inc.
Tilray, Inc. is a cannabis consumer packaged goods (CPG) company with operations around the globe, including in Canada, the US, Europe, Australia, and Latin America. The company has established a reputation as a market leader in Canada and one of the largest cannabis industries globally. Tilray is getting ready to expand its worldwide presence by breaking into the US market. Tilray was the first business to grow and market medicinal marijuana in Germany. According to the company, the markets in Canada and the United States offer great potential for CBD-infused foods and beverages. In 2021, Tilray and Great North Distributors made the decision to work together to promote the growth of Canada’s legal cannabis market.
The company began offering medicinal cannabis products in Malta in February. By acquiring a majority interest in the convertible notes issued by MedMen, Tilray has strengthened its engagement in the US cannabis industry. Tilray announced a net income of $52.5 million and adjusted EBITDA of $10.1 million for the third quarter of fiscal 2022. Adjusted EBITDA has now been positive for 12 consecutive quarters for the company. Furthermore, net sales jumped by 23% to $152 million, while gross profit improved by 17% to $39.8 million. Tilray and HEXO Corp. (NASDAQ: HEXO) decided to collaborate strategically in April with the possibility of an acquisition. The company will release its fourth quarter fiscal 2022 results on July 28th before the market opens.
TLRY Stock Performance
On July 22nd the shares of TLRY closed at $3.50, up 6.06% in the past five trading days. The 52-week price range for the stock is $3.00-$16.67 and is down 50.21% year to date. According to CNN Business experts, TLRY stock has a 12-month consensus price objective of $5.25 per share. This represents a 49.57 percent increase over the previous trading price of $3.42.
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HEXO Corp.
A Canadian company called HEXO Corp. creates cannabis products that have won awards. With a diversified brand portfolio that serves the Canadian recreational market, the company today holds a solid position in a global market. HEXO primarily sells medical equipment in Canada, Malta, and Israel. The business has also been expanding its footprint in the American cannabis sector. Colorado is serviced by Truss CBD USA, a partnership between HEXO and Molson Coors. Zenabis Global Inc., a Canadian-licensed grower of cannabis for both medicinal and recreational purposes, was recently bought by the company. Both purchases will support HEXO’s upcoming growth in Canada, Europe, and the US.
Results for the second quarter of 2022 from HEXO were announced. Total net revenues were $52.8 million, up 61 percent from the same time last year. Additionally, adjusted EBITDA increased from a negative $11.2 million to a negative $5.6 million, and adjusted gross margin increased from a negative 25% to a negative 36% quarter over quarter. The company also successfully wrote down $616 million in impairments, eliminating past issues and paving the path for future growth. Additionally, HEXO used a fully owned subsidiary to purchase its first manufacturing facility in the United States. High-quality Powered by HEXO products will be produced at the 50,000-square-foot Fort Collins, Colorado, facility and shipped all throughout the United States. In July Hexo completed a transaction with Tilray creating an alliance between the two Canadian cannabis leaders.
HEXO Stock Performance
On July 22nd, HEXO closed at $0.1973, up 4.89 percent in the previous five trading days. The stock is presently trading in a 52-week price range of $0.1770-$4.39, a drop of 71.76% year to date. According to CNN Business experts, HEXO stock has a 12-month average price objective of $0.19 per share. This would be a 2.03 percent decrease from the last transaction price of $0.1973.
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High Tide Inc.
High Tide Inc. is a cannabis dispensary that also produces and markets cannabis-related goods. A well-known Canadian cannabis brand, as well as a top worldwide manufacturer and distributor of cutting-edge smoking accessories, are all part of High Tide’s portfolio. The largest accessory shopping website in the world was created to launch the company. 127 retail outlets for the High Tide brand exist right present in Canada. Blessed CBD’s primary market is the UK, and High Tide acquired the firm in October 2021. The firm opened its 66th retail cannabis outlet in Alberta, becoming the largest provider in the province. High Tide made the biggest acquisition the business had ever made when it acquired NuLeaf Naturals.
Additionally, the company finalized the acquisition of Smoke Cartel Inc. and introduced the Grasscity brand, which sells hemp-derived CBD products. Through the fast acquisition of the renowned online retailer Dankstop, High Tide entered the US cannabis market. Sales increased by 98% in the second quarter of 2022, according to financial information released by High Tide, and Adjusted EBITDA increased for the ninth consecutive quarter. Same-store sales increased 23 percent sequentially from the most recent quarter to the previous one.
Sales increased as well, going from $40.9 million in the same period in 2021 to $81.0 million in the second quarter of 2022. When comparing the current quarter to the previous one, revenue increased sequentially by 12%. Gross profit increased by 51% to $22.7 million in the second quarter of 2022 from $15.0 million in the same period of 2021. In July, the company acquired nine operational retail cannabis locations from Choom Holdings.
HITI Stock Performance
The shares of HITI finished at $1.55 on July 22nd down 25.48% in the last month. The stock is currently trading in a 52-week price range of $1.55 to $7.98, down 63.53% year to date. HITI stock has an average price target of $7.43 per share, according to Tip Ranks analysts. In this example, the upside would be 379.35% over the current market price of $1.55.
Canadian Cannabis Stocks And Trading Strategies For 2022
While Canadian cannabis companies might not be doing as well as their American rivals in July, investors might benefit in the near term. You can determine which investments are the best by looking at a company’s press releases and financial statements. Investors may profit from the anticipated high price volatility in the cannabis industry in 2022 in order to make quick gains. Keep in mind that these are riskier investments that require a more sophisticated trading strategy. As summer approaches, Congress may act as a big motivator for the cannabis industry. It is wise to keep a watch on Canadian marijuana stocks to buy before August 2022.
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