Top Cannabis Stocks In June 2021
Are you looking for the best marijuana stocks to buy in June? After a few months of market declines, June could have a few catalysts that may drive the cannabis sector higher. For one the federal government reintroduced the MORE Act going into June and if this bill passes it could ignite new momentum for top cannabis stocks.
Currently, there are some marijuana stocks that could have significant upside with federal legalization passing. In the first quarter of 2021 most leading cannabis companies in the US have delivered strong earnings for investors and continue to raise revenue guidance for this year. Recently a new BDSA report shows strong revenue growth for many states in April. In Nevada, sales grew by 129% to $87.8 million but some of this is attributed to the reopening of the Las Vegas Strip.
Other states like California and Illinois also saw significant revenue growth in April increasing by 42% to $356.8million and 120% to $150 million respectively. Although recently strong first-quarter earnings have not developed into gains in the market it does show the strength of the US cannabis companies. Now in June, the cannabis sector has begun to show some upward momentum after months of declines. In general, this has left many top marijuana stocks with the possibility of more upside from current stock prices.
Factors To Consider About Cannabis Investing
For new investors, there are a few important factors to consider about cannabis stocks right now. Traditionally marijuana stocks are known for being volatile in the market. In many cases, day traders and swing traders take advantage of these price swings and capitalize through short-term investments. For the long-term investor, this price fluctuation makes it more difficult but there is also the potential for those using this trading style.
In reality, doing your own due diligence as an investor is important in making the best decisions for your portfolio. Researching a company’s financials and studying how a stock performs in the market can help you find the best entry point for your investment. With this in mind, we can take a closer look at some pot stocks to watch to start the second week in June. Currently, these marijuana stocks could have potential gains for investors from current trading levels.
Marijuana Stocks To Watch
Ayr Wellness Inc.
Recently Ayr Wellness Inc. has been expanding rapidly through acquisitions in key markets across the US. Making a large acquisition in Florida the company now has the fourth-largest footprint in the states. Currently, Ayr has 34 dispensaries in the state and a total of 50 stores nationwide. In May Ayr released its first-quarter 2021 financials with revenue of $58.4 million up 74% year over year. Additionally, the company has a Q1 Adjusted EBITDA of $18.4 million on a US GAAP basis.
The company operated at a US GAAP loss of $8.4 million which included a one-time expense of $26.5 million. Also, Ayr provided a second-quarter revenue guidance estimate of $90 million up 218% year over year. Another important factor is the company reaffirmed its guidance for 2022 with revenue of at least $725 million. In Q1 the company opened its sixth dispensary in Nevada close to the Las Vegas airport.
AYRWF stock closed on June 4th at $29.00 up 21.95% year to date. In February the stock reached a high of $37.50 and is down 5.20% in the last five days. According to analysts at Tip Ranks AYRWF stock has a 12-month average price target of $45.58 per share. In essence, this would represent an increase of 57.17% from current trading levels. For this reason, AYRWF stock is a top marijuana stock to add to your watchlist the second week in June.
Village Farms International, Inc.
Village Farms International, Inc. is an established greenhouse grower of agriculture now focusing on opportunities in the cannabis and CBD segments in Canada and the US. At the present time, Village Farms’ wholly-owned subsidiary Pure Sunfarms is considered one of the largest cannabis operations in North America. In May Village Farms reported first-quarter 2021 results that saw a large decline in value.
In detail Village, Farms reported first-quarter revenue of $52.4 million although this was a 63% increase year over year the company sustained a net loss in Q1 of $7.4 million. Due to this loss investor’s disappointment in the earnings left VFF stock trading much lower in the market. But these lower prices could be an opportunity for investors to buy VFF stock at better stock prices.
VFF stock closed on June 4th at $10.34 up 1.97% year to date. In February VFF stock reached a high of $20.32 and is up 6.05% in the past five trading days. According to analysts at CNN Business VFF stock has a 12-month median price target of $18.19 per share. This estimate would represent an increase of 76.59% from current levels. With this in mind, VFF stock could be one of the best marijuana stocks to buy in the second week of June.