Investing In Top Cannabis Stocks In August
Are you looking for ways to invest in top marijuana stocks in August? Closing the second week of the month the best cannabis stocks have continued to decline in the market. It seems delivering strong earnings has not helped the cannabis sector trend higher. Instead after delivering strong financials top marijuana stocks like GrowGeneration Corp. (NASDAQ: GRWG) closed the day down 17.07% on August 12th.
In general, this price action has trended throughout the sector as most leading companies are reporting significant revenue growth but not seeing any positive momentum in the market. In the US top cannabis companies are performing at a high level but just like the previous earnings in March strong financials are not moving the cannabis sector higher. For quite some time the only event that has propelled top marijuana stocks higher is federal cannabis legalization and reform.
Since the presidential election of November 2021, the cannabis market has rallied on the notion the US would establish federal cannabis legalization in 2021. Now after 8 months of waiting for lawmakers to introduce new federal cannabis legislation top marijuana stocks have declined in value significantly. This has given new investors an opportunity to gain exposure to the cannabis industry at a lower price point.
Investing In The Best Performing Marijuana Stocks
For new investors, it’s important to do your research on a cannabis company before investing. Researching a company’s financial health and studying how the stock moves in the market can help you establish the most gains. In the next five years, the cannabis industry is expected to more than double in size. This growing market could continue to give leading cannabis companies the ability to expand and see revenue growth.
As new cannabis markets are introduced throughout the US the best-positioned companies could gain substantial market share. In the US these companies continue to advance in the US cannabis market. With the cannabis sector trading near its lowest levels in 2021, this could be time to add some of the best marijuana stocks to your watchlist. Let’s look at 2 top cannabis stocks for your list in August.
Top Marijuana Stocks To Watch In August
Columbia Care Inc.
Columbia Care Inc. could be one of the best-positioned cannabis companies to grow rapidly after legalization is complete in the state of New York. Recently, the company made an acquisition of a 34-acre Long Island cultivation site has given the company one of the largest cannabis footprints to service the East Coast market. As it stands, Columbia Care operates in 18 US markets and operates 130 facilities including 99 dispensaries and 31 cultivation and manufacturing facilities. In July the company announced the launch of West Virginia market operations. Columbia Care expects to begin cultivation operations in the state at its Falling Waters facility.
On August 12th Columbia Care reported its second-quarter 2021 results delivering record quarterly revenue of $109.7 million up 232% year over year. As a result, the company saw record quarterly adjusted gross profits of $47.7 million an increase of 300% year over year. The company also has a record adjusted EBITDA of $16.4 million up $21.1 million year over year. Recently, the company completed the acquisition of Green Leaf Medical establishing a market-leading position in the mid-Atlantic. With this, Columbia Care appointed Phillip Goldberg of Green Leaf Medical To its Board of Directors.
CCHWF stock closed on August 12th at $4.64 down 33.52% year to date. The stock has a 52-week price range of $3.14-$7.89 and has declined by 14.55% in the last 30 days. According to analysts at Tip Ranks CCHWF stock has a 12-month average price target of $10.81 per share. In essence, this forecast represents an increase of 132.97% from its last trading price. For this reason, CCHWF stock could be one of the best marijuana stocks to buy in 2021.
Charlotte’s Web Holdings, Inc.
As it stands, Charlotte’s Web Holdings, Inc is one of the market leaders in Hemp CBD wellness products in the US. The company has held its leading industry position in the US CBD market for years and continues showing growth potential. Charlotte’s Web has premium quality products that are made with American farm-grown hemp genetics. In general, the company manufactures this into hemp extracts and has the number one CBD brand in the US. Charlotte’s Web has distribution through more than 22,000 retail locations across the nation.
On August 12th Charlotte’s Web reported its Q2 2021 results with 22.4% year over year growth with market share gains. In detail, revenue increased to $24.2 million versus $21.7 million year over year. DTC eCommerce revenue increased 1.0% to $15.7 million equating to 64.9% of Q2 revenue. In addition, 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 closed on August 12th at $3.1025 down 6% year to date. The stock has a 52-week price range of $3.14-$7.89 and has declined by 43.05% in the last six months. According to analysts at Market Beat CWBHF stock has a consensus price target of $3.90 per share. Currently, this would represent an increase of 25.7% from its last trading price of $3.10. With this in mind, CWBHF stock could be a top marijuana stock to add to your watchlist before next week.
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