Top Cannabis Stocks And Strong Second Quarter 2021 Earnings
In August top marijuana stocks continue to experience a pullback in the market. Although most leading cannabis companies are delivering strong financial results in this round of earnings it has not translated in the market. On the other hand, some of the best-performing cannabis companies saw the deepest declines in value. This downtrend has continued for several months bring the cannabis sector to its lowest level of trading in 2021. For new investors looking to start a position in the sector, it could be time to start a pot stock list for next week.
As more investors grow concerned about how the market will react to the resurgence of COVID-19 and the Delta variant we could see further declines in the cannabis sector. One thing to keep in mind is that the cannabis industry has proven itself to be very resilient through the pandemic and deemed an essential business. This means if we are to suffer new lockdowns in the US many cannabis companies will still be able to do business.
Events That Could Affect Pot Stock Performance
Now with a resurgence of COVID-19 in the US, it could mean lawmakers will put federal cannabis legalization and reform on the backburner until the situation improves. For most of 2021 cannabis investors have been waiting on Congress to change the ancient federal policy on cannabis. Although we have a draft of possible legislation it seems Schumer is having trouble gaining enough support to get the Cannabis Administration and Opportunity Act passed at the present time.
For new investors, it could be a good time to find the best marijuana stocks to invest in for 2021. In the US the cannabis market continues growing rapidly and many leading companies are seeking the benefits. Although their performance is not delivering gains in the market with a change in market sentiment this trend could be reversed. In mid-August, these could be the best marijuana stocks to buy in 2021.
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Best Marijuana Stocks To Watch In August
- GrowGeneration Corp. (NASDAQ: GRWG)
- Trulieve Cannabis Corp. (OTC: TCNNF)
- Verano Holdings Corp. (OTC: VRNOF)
- Cresco Labs Inc. (OTC: CRLBF)
GrowGeneration Corp
GrowGeneration Corp. is a leading owner and operator of retail hydroponic and organic gardening stores across the US. At the present time, the company markets and distributes organics, lighting, and hydroponic equipment mainly used by cannabis cultivators. Currently, GrowGen has 58 organic garden centers across 12 states recently opening its 6th store in Michigan. The company has also been working on its online presence with the launch of GrowGeneration.com. Specifically, the company has launched a newly redesigned e-commerce platform. The site is a one-stop-e-commerce destination with over 10,000 products ranging from nutrients to lighting technology. In the next five years, the company is expecting to have over 100 locations operating in the US.
On August 12th GrowGen reported second-quarter 2021 financials with record revenue of $125.9 million up 190% year over year. The company delivered a net income of $6.7 million and adjusted EBITDA of $14.5 million. In addition, the company raised its revenue guidance in 2021 to $455-$475 million. In detail, the company experienced a comparable store sales increase of 60% from the prior year. Although GrowGen delivered strong revenue growth GRWG stock saw the sharpest selloff of all ancillary marijuana stocks. In the last five days, GRWG stock has declined by 25.63% and hit its lowest trading price in 2021 last week.
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Trulieve Cannabis Corp.
Trulieve Cannabis Corp. has the largest market share in Florida with more than 50% of the legal cannabis sales in the state. As it stands the company is a leading and top-performing cannabis company in the process of making the acquisition of Harvest Health & Recreation Inc. (OTC: HRVSF). After the acquisition is complete the new company will have a consensus 2021 revenue of over $1.2 billion. In fact, this would make Trulieve the largest revenue-producing cannabis company in the US. At the present time, the Company has 88 stores in Florida, and 97 nationwide, growing strategically in new markets. This month the company announced the launch of a brand portfolio that includes four brand designs tailored to meet the needs of new cannabis consumers and connoisseurs.
In July Trulieve announced it received a production license approval in Georgia giving the company further presence in the Southeast cannabis market. The company also opened its first dispensary in the state of Massachusetts adding another market it can produce growth in. On August 12th Trulieve reported its second-quarter 2021 financial results with a record-breaking performance. The company achieved its 14th consecutive quarter of profitability has served over 500,000 cannabis customers. In detail, the company saw revenues of $215.1 million and generated a net income of $40.9 million.
Verano Holdings Corp.
Verano is a vertically integrated MSO providing regulated cannabis products to US consumers. Currently, the company produces premium cannabis products sold under its portfolio of consumer brands. Verano has its presence in 14 U.S. States, with active operations in 11. The company has 84 operational dispensaries, and 10 cultivation and processing facilities. In the future, Verano expects to surpass 90 dispensaries in 2021. The company operates dispensaries under retail brands Zen Leaf™ and MÜV™ catering to both medical and adult-use markets.
Verano completed the acquisition of TerraVida and The Healing Center. As a result, this acquisition gives Verano six dispensaries in Pennsylvania and a permit to build an additional three in the state. To end July the company opened a flagship Pittsburgh dispensary with a four-lane drive-through. On August 13th the company opened its 36th MÜV™ dispensary in Florida and plans to open another one later this month. Verano announced second-quarter 2021 financials with record revenue of $199 million an increase of 164% year over year. As a result, gross profit on an unadjusted basis was $100 million or 50% of revenue.
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Cresco Labs Inc.
At the present time, Cresco Labs Inc is one of the largest vertically integrated companies in the US. The company is the number one wholesaler of branded cannabis products in America. The company operates 33 retail locations across 10 states. Cresco opened its fourth Sunnyside dispensary in Pennsylvania as the company expands into other key markets. Recently, the company announced a portfolio expansion of its Good News brand with more selections in the edibles and vaping areas. In detail, under the Good News brand Cresco is launching Counting Sheep, Day Off, and Pride products. These edibles and vape products will be available in California, Illinois, and Michigan.
On August 13th Cresco announced its second-quarter 2021 results with a record revenue of $210 million and reaffirmed its annualized revenue guidance of $1 billion in 2021. 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. The company expects gross profit margins in excess of 50% for the remaining two quarters of 2021.
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