Top Cannabis Stocks In a Down Market
As the overall markets continue to pull back to start October top marijuana stocks to buy are also experiencing declines. For most of 2021, the best cannabis stocks in the market have been dropping in value this comes after reaching new highs in February this year. Now some of the top pot stocks are trading at their lowest prices seen so far this year.
One major factor that has had a negative effect on the cannabis sector is federal marijuana legalization and cannabis banking reform. As the House recently passed the SAFE Banking Act and the MORE Act Things began to look promising for marijuana stocks in Q4 2021. But not long after the House passed these legislations Senate Majority Leader Chuck Schumer announced he would not pass banking reform before legalization.
The Senator has his own bill he and other lawmakers have been trying to gain support for. Schumer unveiled the draft of the Cannabis Administration and Opportunity Act around July. It seems the Senator is having trouble gaining the support needed to get a passing vote in the Senate. Although this is unfortunate for the cannabis sector at the present time there could be potential in the future.
Investing In The Best Pot Stocks In 2021
Although top pot stocks are trading at lower values these same companies are delivering strong earnings reports and revenue growth this year. Unfortunately for cannabis investors none of this has had any positive effect on how these cannabis stocks trade in the market. This year it seems the only possible catalyst for top marijuana stocks is federal marijuana legalization. Now in the fourth quarter top marijuana stock could continue consolidating further without any action from Congress.
For investors, this could be a good time to find the best marijuana stocks for your watchlist in October. Before investing in cannabis stocks it’s important for traders to do their due diligence. Researching a company’s financials and following how a stock behaves in the market can help you establish the best positions for your investments. Now in Q4 2021 US marijuana stocks could be trading at levels that will produce upside as the market improves. Let’s look at 2 top US cannabis stocks for your list this week.
Best US Marijuana Stocks To Watch Right Now
Cresco Labs Inc.
Cresco Labs Inc is one of the largest vertically integrated cannabis companies in the US market. At the present time, the company is considered the number one wholesaler of branded cannabis products in America. In addition, according to a new BDSA report is the leading cannabis brand in Illinois and Pennsylvania. Currently, Cresco operates 33 retail locations across 10 states with 18 production facilities and 44 retail licenses. To highlight, the company opened its fourth Sunnyside dispensary in Pennsylvania as the company expands into other key markets. Also, the company announced a portfolio expansion of its Good News brand with more selections in the edibles and vaping areas. In specific, these edibles and vape products will be available in California, Illinois, and Michigan.
Cresco announced the acquisition of Blair Wellness Center a Maryland dispensary. In its latest financials, Cresco announced its second-quarter 2021 results with a record revenue of $210 million. In addition, the company reaffirmed its annualized revenue guidance of $1 billion in 2021. As a result, the company delivered gross profits excluding fair value markups of $107 million or 51% of revenue. Cresco has a net income of $2.7 million and an adjusted EBITDA of $45.5 million. For its outlook, the company expects gross profit margins of more than 50% for the remaining two quarters of 2021. The company will report its third-quarter 2021 results on November 11th before the market opens.
CRLBF Stock Performance
CRLBF stock is trading at $8.42 on October 4th down 5.92% currently for the day. The stock has a 52-week price range of $5.80-$17.49 and is down 9.78% year to date. According to analysts at Tip Ranks CRLBF stock has a 12-month average price target of $17.25 per share. In this case, this would be an upside of 104.87% from its last trading price of $8.42.
At the present time, TerrAscend cultivates and sells medical and adult-use cannabis in Canada and the United States. Specifically, the company is a leading US cannabis operator with a footprint in Pennsylvania, New Jersey, and California. Primarily, TerrAscend has licensed cultivation and processing facilities in Maryland and Canada. In addition, the company produces and distributes hemp and cannabis-derived products and manufactures artisan edibles for cannabis consumers. Recently, TerrAscend launched a portfolio of Kind Tree Branded products in Maryland. The Maryland facility was already producing 15 strains of flower under the Kind Tree brand and now will add vapes and half gran pre-rolls to the lineup.
In August TerrAscend reported its second-quarter results with net sales of $58.7 million an increase of 72% year over year. As a result, the company delivered an adjusted gross profit margin of 61%in Q2 2021. In addition, the company has an adjusted EBITDA of $24.3 million up from $22.6 million in Q1 2021. Also, TerrAscend signed an agreement to be the sole cultivator and manufacturer of COOKIES branded products in New Jersey and brings COOKIES to the three dispensaries it has in the state. On September 17th the company received Michigan prequalification approval for the acquisition of Gage Growth Corp. (OTC:GAEGF).
TRSSF Stock Performance
TRSSF stock is trading at $6.79 on October 4th down 5.33% for the trading day going into the close. The stock has a 52-week price range of $4.25-$16.25 and is down 28.63% year to date. According to analysts at Market Beat TRSSF stock has a consensus price target of $15.33 per share. In essence, this would represent an estimated upside of 113.8% from its current trading price. With the US cannabis sector trading near 2021 lows, these could be the best marijuana stocks to buy for Q4 2021.
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