Are Canadian Cannabis Stocks Ready To Rebound?
To start December the best marijuana stocks to buy are trading near some of the lowest values seen in 2021. Since the start of the pandemic, the cannabis industry has been moving closer to ending US federal prohibition. But due to the delays in Congress with getting this accomplished many of the top cannabis stocks to invest in have lost significant market value since reaching new highs in February 2021.
One area of pot stocks that suffered the steepest declines in Canadian marijuana stocks. Because entry into the US market is important for Canadian cannabis companies and their future growth, they have been most affected by the delays. At the present time in the US, the cannabis market is growing rapidly on the state level. Many leading Canadian cannabis companies have already established a plan to enter the American cannabis market.
Some have made acquisitions of US companies and others are using CBD as a means to establish themselves in the US. Although Canadian cannabis companies have not performed as well as US companies, they have shown significant revenue growth. In general, Canadian cannabis companies have also grown across the global market. For the next five years, this gives them the possibility of significant growth as the cannabis industry expands.
Finding The Best Marijuana Stocks And Learning To Invest
Before investing in top cannabis stocks there are a few important factors to consider. For one top pot stocks are known for substantial market volatility. This volatility could make it difficult for long-term investors to establish profitable positions. Researching a company’s earnings and press releases can help you narrow down the best marijuana stocks to invest in.
In addition, studying how a stock moves in the market can allow you to establish the best entry point for investments. One-way investors keep track of stocks is by making a watchlist then using technical analysis to find the most profitable entries. As the possibility of reaching some form of US cannabis reform increases let’s look at 2 top Canadian cannabis stocks to add to your watchlist in December.
Best Canadian Marijuana Stocks To Add To Your Watchlist In December
At the present time, 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 underwent a merger in the Canadian market to become one of the largest revenues producing cannabis companies in the world. Presently, Tilray is positioning itself to enter the US market and is also expanding its international presence. In addition, Tilray completed its first harvest and delivery of medical cannabis grown in Germany. The company has established CBD products and infused beverages that could be large revenue producers across the Canadian and American markets. In October Tilray signed a distribution agreement with Great North Distributors to drive more adult cannabis sales across Canada.
Also important, Tilray acquired a majority position in MedMen convertible notes also a move to enter the US cannabis market. Tilray reported its 2021 fiscal year and Q4 results with net revenue up 27% year over year to $513 million. To highlight, the company produced a net income of $33.6 million and Adjusted EBITDA of $12.3 million. As a result, Tilray increased its revenue by 55% in Q4 and holds the #1 share in Canada.
TLRY stock closed on November 30th at 10.12 down 7.16% in the past five trading days. Currently, the stock has a 52-week price range of $7.16-$67.00. According to analysts at CNN Business TLRY stock has a 12-month median price target of $12.00 per share. In this case, this would be an increase of 18.58% from its last trading price of $10.12.
Aurora Cannabis Inc.
Aurora Cannabis Inc. is a Canadian company that produces and distributes medical cannabis products globally. Recently, the company announced its entry into the US cannabis market through the acquisition of Reliva a CBD producing company in America. In addition, Aurora expanded its San Rafael ’71 portfolio with the launch of 3 new proprietary cultivars. Internationally, the company delivered an $8 million shipment of cannabis to Israel. At the present time, the company is working on restructuring its balance sheet and has fulfilled the inaugural shipment to the French medical cannabis pilot program.
In November Aurora announced its fiscal 2022 first-quarter results with total cannabis net revenue of $60.1 million compared to $54.8 million in Q4 FY21. Specifically, the company has an Adjusted EBITDA loss of $11.5 million. As it stands, Aurora still is the #1 Canadian LP in the global medical cannabis market and says its business transformation plan is on track.
ACB stock is trading at $6.42 on November 30th down 5.31% in the last five trading days. Currently, the stock has a 52-week price range of $5.85-$18.98 down 22.74% year to date. According to analysts at Market Beat, ACB stock has a consensus price target of $7.08 per share. This would be an upside of 10.3% from its current trading price.
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