Top Cannabis Stocks Under $2 In 2021
Are you looking for short-term ways to invest in top marijuana stocks? In 2021 the cannabis sector has experienced substantial market volatility reaching new highs in the first quarter. Since that time the best cannabis stocks to invest in have seen declines and are trading near their lowest levels this year. One area of high volatility that investors trade using short-term methods is marijuana penny stocks.
Specifically, penny stocks are any stocks trading under the $5 price point. Known to be a higher risk-reward area of the market many investors use day trading and swing trading techniques to establish gains in this sector. As the overall market retreat after Powell makes remarks on inflation and asset purchase tapering, top cannabis stocks under $2 are also trading lower. With this drop to end this week these marijuana penny stocks could be positioned to produce some upside for traders.
One major catalyst cannabis many investors have been waiting for is federal marijuana legalization. In the fourth quarter, we have seen a reintroduction by the House of cannabis reform Bill. Although the Senate continues to delay banking and legalization, we are seeing much stronger bipartisan support to end cannabis prohibition. If this happens in the fourth quarter top marijuana stocks may rally like the rally seen last year.
Learning To Trade Marijuana Stocks And Market Volatility
For investors, it’s important to research a company before starting a position. Looking into a company’s financials and following how the stock performs in the market can help you achieve the best returns from your investments. When trading marijuana penny stocks find the best entry can produce larger percentage gains when the stock begins to move. Although some of these cannabis companies have been producing revenue growth in their latest earnings it has not translated into gains in the market.
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This year it seems the only potential market mover will be US legalization. As we close out this week it may be time to make a list of top cannabis penny stocks under $2 to watch. This week these pot stock has seen increased volatility in trading and could continue this trend into next week. Let’s look at 2 of the best marijuana penny stocks for your list right now.
Best Marijuana Penny Stocks For Your Watchlist Next Week
- Greenlane Holdings, Inc. (NASDAQ: GNLN)
- Charlotte’s Web Holdings, Inc. (OTC: CWBHF)
Greenlane Holdings, Inc.
First up is Greenlane Holdings, Inc. one of the largest cannabis accessories companies serving the global market. Primarily, the company sells premium cannabis accessories, child-resistant packaging, and specialty vaporization products in the US and in the global market. As it stands, Greenlane has a customer base of more than 11,000 retail locations across the globe. In September Greenlane completed the merger with KushCo Holdings, Inc. On October 19th the company entered into an agreement to acquire DaVinci a leading developer and manufacturer of premium portable vaporizers.
In August Greenlane reported its second-quarter 2021 results with revenue of $34.7 million up 71% year over year. Specifically, the company saw Q2 2021 core revenue of $34.5 million. Greenlane Brands sales grew to $9 million in Q2 2021 up 62.5% year over year. Now Greenlane Brands accounts for 25.9% of total revenue compared to 17.1% in Q2 2020. As a result, gross profits grew to $7.8 million up 22.4% from the previous year. In October the company appointed current director Donald Hunter as the Chairman of the Board.
GNLN stock is trading at $1.855 on October 22nd down 12.50% going into the close. Currently, the stock has a 52-week price range of $1.80-$8.73 and is down 46.46% year to date. According to analysts at CNN Business GNLN stock has a 12-month median price target of $5.50 per share. In essence, this would represent an increase of 196.50% from its current trading price.
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Charlotte’s Web Holdings, Inc.
Charlotte’s Web Holdings, Inc is one of the market leaders in Hemp CBD wellness products in the US. At the present time, the company has held its leading industry position in the US CBD market for years and continues showing growth. Primarily, Charlotte’s Web has premium quality products made with American farm-grown hemp genetics. Specifically, the company manufactures this into hemp extracts and has the number one CBD brand in the US. At the present time, Charlotte’s Web has distribution through more than 22,000 retail locations across the nation. In October the company announced retail expansions in California following the passing of Assembly Bill 45.
In August Charlotte’s Web reported its second-quarter 2021 results with revenue increased to $24.2 million versus $21.7 million year over year. Additionally, DTC eCommerce revenue increased 1.0% to $15.7 million equating to 64.9% of Q2 revenue. As a result, B2B revenue increased 37.7% year over year boosting gross profits to $15.8 million or 65.5% of consolidated revenue. The company has an adjusted EBITDA of $3.9 million and $27.1 million in cash.
CWBHF stock is trading at $1.86 on October 22, 2021, down 2.97% in the past month. The stock has a 52-week price range of $1.66-$7.00 and is down 40.61% year to date. According to analysts at Tip Ranks CWBHF stock has a 12-month average price target of $3.25 per share. In this case, this would represent an upside of 73.99% from its current trading price. As cannabis stocks continue consolidating at these lower levels these could be top marijuana penny stocks to buy in October.
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