Top Cannabis Stocks In December 2021
To start this week top marijuana stocks continued to show a downtrend in trading. Now in December most of the cannabis sector is trading near the lowest stock prices seen this year. For new investors looking to capitalize off the current declines in the cannabis sector, there are currently many US companies that are positioning themselves to be market leaders in the future.
Although there have been delays on the federal level to end cannabis prohibition on the state level many new markets have been established. This has allowed leading cannabis companies to continue to report strong earnings in 2021 and expand rapidly across the US. As Omicron concerns start Christmas week on a downtrend top cannabis stocks continue setting new lows in December. Ultimately putting a dent into any would-be Santa Claus rally.
For new investors, this could be a good time to find the best marijuana stocks for your 2022 watchlist. Establishing a good entry point for your trade is very important due to the high volatility in cannabis stocks. In 2021 the delays with federal cannabis reform have led to significant losses throughout the cannabis sector. In other words, top pot stocks could be trading at a substantial discount for investors right now. One area that has now taken a severe drop in the market is US marijuana stocks.
Pot Stock Market Volatility In 2021
From reaching new highs in February to now establishing new lows this month most top pot stocks could be trading at levels that may offer investors potential gains in 2022. Although this year the cannabis sector did not trade on strong earnings many leading cannabis companies delivered strong revenue growth. In addition, many companies continued expanding across the US as the market grew rapidly these past two years.
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Before investing in cannabis stocks, it’s important to do your own due diligence on a company. Researching a company’s performance and studying how the stock behaves in the market can help you establish the best returns on your investments. Let’s look at 2 top US marijuana stocks for your 2022 watchlist.
Best US Marijuana Stocks For Your Christmas List
- Cresco Labs Inc. (OTC: CRLBF)
- TerrAscend Corp. (OTC: TRSSF)
Cresco Labs Inc.
Cresco Labs Inc, – in the United States, is a vertically integrated cannabis corporation. In the United States, the company is now the leading supplier of branded cannabis products. According to a recent BDSA analysis, Cresco is the leading cannabis brand in Illinois and Pennsylvania. Cresco presently has 45 retail locations throughout 11 states, 20 manufacturing facilities, and 47 retail licenses. The business just opened its fourth Sunnyside dispensary in Pennsylvania as part of its expansion into other markets. Furthermore, the company said that its Good News brand would be expanding its product line to include new consumables and vaping alternatives. In October, the company will convert to owned brand distribution in California to increase profitability and eliminate third-party distribution. Cresco has purchased Blair Wellness Center, a dispensary in Maryland. The company stated in November that it had completed the acquisition of three high-performing Pennsylvania dispensaries.
In the third quarter of 2021, the company recorded revenue of $215.5 million, up 40.6% year over year. As a result, Cresco had a gross profit of $116.7 million, or 54.2 percent of revenue. In addition, Cresco’s Adjusted EBITDA improved by 24% to $56.4 million over the previous quarter. The company reiterated its earlier forecast for the remainder of 2021, forecasting gross profit margins of more than 50% and Q4 revenue of $235-$245 million. A $291 million impairment charge related to changes in intangible assets related to Cresco’s shift in strategy for its California operations was another important factor in the company’s loss.
CRLBF Stock Performance
CLRBF closed at $6.26 on December 21st down 10.58 % in the last five trading days. The stock is currently trading in a 52-week price range of $6.23-$17.49, representing a year-to-date loss of 36.55%. CRLBF stock has a 12-month average price target of $16.69 per share, according to CNN Business analysts. This analysis reflects a 166.63% increase over the last trade price of $6.26.
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TerrAscend Corp.
TerrAscend is a cannabis company based in Canada and the United States that cultivates and distributes medical and adult-use cannabis. With operations in Pennsylvania, New Jersey, and California, the company is a significant cannabis operator in the United States. TerrAscend has growing and processing facilities in Maryland and Canada that are both licensed. The company primarily develops and distributes hemp and cannabis-derived products, as well as artisan treats for cannabis users. TerrAscend has introduced a line of Kind Tree Branded products in Maryland. Under the Kind Tree brand, the Maryland facility already produces 15 strains of flower, and now it will add vapes and half-gram pre-rolls to the mix.
The company published third-quarter 2021 results in November, with net sales of $49.1 million, up 29% year over year but down 16% sequentially. As a result, TerrAscend now has an adjusted gross profit margin of 46%, down from 59% in Q3 2020. TerrAscend also struck a deal to be the sole cultivator and manufacturer of COOKIES branded goods in New Jersey, subject to regulatory approval, and to provide COOKIES to the three dispensaries it operates in the state. The company gained prequalification permission for the acquisition of Gage Growth Corp. (OTC: GAEGF) in Michigan in September.
TRSSF Stock Performance
TRSSF stock closed on December 20th at $5.84 down 7.01% for the trading day. Currently, the stock has a 52-week price range of $4.89-$16.25 and is down 41.89% year to date. According to analysts at Tip Ranks TRSSF stock has a 12-month average price target of $10.76 per share. In this case, this would represent an upside of 84.17% from its last trading price. As US cannabis stocks continue to suffer because of delays in the Senate these could be some of the best marijuana stocks for your list next year.
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