Is Now The Right Time To Buy Cannabis Stocks In 2021?
Currently, for investors waiting for the right time to invest in top marijuana stocks, July could be a good opportunity in 2021. For many investors, the cannabis industry represents an area of the market with significant growth potential. Since the start of 2021 cannabis investors have been waiting for the US to establish federal cannabis reform this year. Now it is starting to look like this industry-changing event could be realized during the summer.
As of now, Senate Majority leader Chuck Schumer is set to reveal his federal marijuana reform bill sometime this week. The Senator has been working with other lawmakers to introduce a comprehensive cannabis reform and legalization bill that could end prohibition. For investors, this could be a monumental event for the cannabis market and could start some upward momentum for the second half of 2021.
Ultimately finding the best ways to invest in the cannabis sector requires some due diligence on the part of the investor. Understanding how a stock performs in the market and researching the earnings of cannabis companies are instrumental in making the best investments. With most cannabis stocks trading closer to their lower price points this year’s current market value could be a decent area to start a position. After months of declines and consolidation, the bottom looks to be in for top pot stocks.
Pot Stocks For Long Term And Short Term Investments
There are currently top marijuana stocks for every type of investing strategy. One area that seems to be better suited for long-term investing is ancillary marijuana stocks. Ancillary cannabis companies are those companies that support the cannabis industry without touching the actual cannabis plant. Some of these companies provide the necessary supplies and materials to grow marijuana. In the cannabis market, these companies are well-positioned to grow alongside the cannabis market for the next few years.
Many of these ancillary companies are reporting strong revenue growth and have seen significant gains in the market. One example of a strong ancillary cannabis stock that has performed well for investors is GrowGeneration Corp. (NASDAQ:GRWG). In fact, GRWG stock has gained 1042.12% in its 3-year performance. For the investor using short-term trading methods, one area that has delivered substantial gains earlier in the year is marijuana penny stocks.
Specifically, penny stocks are any securities trading under the $5 stock price. In the cannabis sector, this area is known to have the most volatility and is considered a high-risk area of the market. But investors have capitalized in this sector using day trading and swing trading methods to lock in returns. With this in mind, we can look for leading cannabis stocks in each of the different areas of the market.
Top Marijuana Stocks To Watch In 2021
Hydrofarm Holdings Group, Inc.
Hydrofarm Holdings Group, Inc. is a leading distributor and manufacturer in the US of hydroponics equipment and supplies for controlled environment agriculture. At the present time, the company offers an extensive variety of equipment that facilitates the cannabis growing process as seen success in the market since its recent introduction in 2020. Generally speaking, Hydrofarms has been in business for over 40 years helping growers in the US and Canada achieve premium-quality cannabis grows.
ABove all, in the first quarter of 2021 Hydrofarms delivered net sales up 66.5% to 111.4 million. As a result, the company saw gross profit increase by 100.8% to $23.2 million or 20.8% of net sales. Hydrofarm revised its full-year 2021 outlook to net sales growth of 30-40% and adjusted EBITDA of $36-$42 million. Also important, in July the company announced it completed the acquisition of Aurora Innovations and its organic nutrients and grow media operations.
HYFM stock is trading at $57.11 up 9.85% year to date. In February HYFM reached a high of $95.00 and is down 20.10% in the past 6 months of trading. According to analysts at CNN Business HYFM stock has a 12-month median price target of $72.00 per share. In essence, this would represent an increase of 26.23% from its current trading value. For this reason, HYFM stock could be one of the top cannabis stocks to invest in for long-term gains in 2021.
Cansortium Inc. is a cannabis company focusing on providing the highest quality marijuana in the state of Florida. Headquartered in Miami the company is establishing operations in Texas, Michigan, and Pennsylvania. In its first-quarter 2021 results, Cansortium reported revenue of $15.1 million up 49% year over year. During this year the company has expanded its presence in Florida and Pennsylvania fully funded by a recent debt and equity financing of $90 million.
Presently, Cansortium has 24 operational dispensaries in Florida giving it a significant footprint in the state. As of now, the company expects to have a total of 27 operational dispensaries by the end of 2021. In addition, its brand the Fluent has a wide variety of premium dried flowers, edibles, and full-spectrum concentrates cartridges, and creams. Also important, Cansortium reaffirmed its annual 2021 guidance of revenue between $90-$100 million and adjusted EBITDA of $30-$35 million.
At the present time, CNTMF stock is trading at $0.89 up 14.75% year to date. In February CNTMF stock reached a high of $1.35 and has gained 152.46% in its 1-year performance. According to analysts at Tip Ranks CNTMF stock has a 12-month average price target of $1.30 per share. As a result, this forecast would be a gain of 46.07% from its current trading price. With this in mind, CNTMF stock could be a top marijuana penny stock to watch this week.
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