Top Cannabis Stocks To Watch For Short Term Trades
Are top marijuana stocks on your watchlist for May? Most top cannabis stocks have fallen to new lows to start 2022. In addition, the cannabis sector did not participate in the rally the overall market experienced after the Fed announced a 50-basis point rate hike and undoing the trillions in asset purchases made since the beginning of the pandemic. At this point for the best cannabis stocks to rebound in 2022 it would take an announcement of US marijuana legalization being the catalyst.
In general, the top pot stocks have seen a downtrend that has lasted more than a year now. Although recently some Canadian marijuana stocks like Tilray Brands, Inc. (NASDAQ: TLRY) have seen some upside in 2022 these runs have been short-lived and good for only short-term gains. Unless the US establishes federal cannabis reform in 2022 it’s highly unlikely top cannabis stocks will deliver long-term returns to investors. Because of this many cannabis investors have begun using short-term techniques like day trading and swing trading to take advantage of the volatility in the market.
One area that has delivered short-term gains in the past is marijuana penny stocks. In general penny stocks refer to any stocks that trade under the $5 price point. Known for having significant market volatility these are considered higher risk-reward trades. Many active traders use chart patterns and technical indicators to put themselves in grade A setups that give them the best chances of producing a profitable trade.
Investing In Penny Stocks As An Active Trader
Before making any investments it’s important to research a company’s earnings and press releases. This will help investors find the top marijuana companies to invest in that have the most potential for making large moves in the market. While the cannabis sector is trading near new lows let’s look at 3 top cannabis stocks for your list in May.
Best Marijuana Penny Stocks For May 2022
- Jushi Holdings Inc. (OTC: JUSHF)
- Columbia Care Inc. (OTC: CCHWF)
- Sundial Growers Inc. (NASDAQ: SNDL)
Jushi Holdings Inc.
Jushi Holdings Inc. is a cannabis and hemp corporation with a rising presence in the United States’ medical and recreational marijuana markets. The company’s main objective is to build a portfolio of branded cannabis and hemp-derived goods for the American market. Jushi operates 39 dispensaries in the United States under the BEYOND/HELLO brand. Jushi also has 31 retail licenses in the US, and its national cannabis dispensary brand, Beyond/Hello, is expanding both online and in-store. In April, the company purchased NuLeaf Inc., allowing it to expand its vertically integrated operations in Nevada.
Jushi released its financial results for the fourth quarter and full-year 2021 in March, with Q4 revenue of $65.9 million. In addition, income for the entire year 2021 climbed by 159 percent to $209.3 million over the previous year. A considerable rise in adjusted gross profits to $92.1 million resulted in a net income of $25.3 million. The company generated an adjusted EBITDA of $16.9 million, or 8% of revenue. In 2021, the company extended its cannabis footprint to seven states, and a SunStream Bancorp Inc. portfolio company provided a $100 million senior secured credit facility.
JUSHF stock closed at $2.12 on May 4th down 25.80% in the last month of trading. Currently, the stock has a 52-week price range of $2.06-$7.49 and is down 34.71% year to date. According to analysts at Tip Ranks JUSHF stock has a 12-month average price target of $5.40 per share. In this case, this represents an upside of 154.35% from its last trading price of $2.12.
[Read More] Top Marijuana Stocks To Watch For Trading In May
Columbia Care Inc.
Columbia Care Inc. plans to considerably increase its presence in the New York area. The business just acquired a 34-acre growing facility on Long Island, giving it one of the largest cannabis footprints on the East Coast. Columbia Care now has 131 sites, including 99 dispensaries and 32 growing and processing facilities, in 18 different cities across the United States. In October, the company established its first Missouri site, a Cannabis Dispensary. The company announced the opening of its third gLeaf dispensary in Virginia. Cresco Labs Inc. (OTC: CRLBF) announced the acquisition of Columbia Care on March 23rd, making it the largest MSO in the United States with a $2 billion total enterprise value.
The company reported fourth-quarter and full-year 2021 results, as well as a 2022 projection, on March 24th, in compliance with US GAAP. For the entire year of 2021, the company generated $460 million in sales and $58 million in Adjusted EBITDA, according to US GAAP. In addition, the company had a record quarterly sale of $139 million, up 70% year over year. According to US GAAP, Columbia Care expects sales of $625-$675 million and Adjusted EBITDA of $120-$135 million in 2022. The company will release its first-quarter 2022 results on May 16th before the opening.
CCHWF stock closed on May 4th at $2.0265 down 30.81% in the past month of trading. Currently, the stock has a 52-week range of $1.93-$6.63 down 29.16% year to date. According to analysts at Tip Ranks CCHWF stock has a 12-month average price target of $7.40 per share. In this case, this is an upside of 265.16% from its last trading price of $2.03.
Sundial Growers Inc.
Sundial Growers Inc. is a cannabis company based in Canada that cultivates and sells marijuana for adult use. The company now manufactures and distributes inhalable products like flower, pre-rolls, and vapes. Sundial has created the first Canadian Caviar cone under the Top Leaf brand. According to the company, the Forbidden Lemon Caviar Cones will be the first caviar cone product to hit the Canadian market. Because of this news, Sundial’s specialized innovation pipeline for premium inhalables in the Canadian cannabis market has increased. Sundial acquired Alcanna, the largest private alcohol retailer in Canada, in March and finalized the deal in October.
In April Sundial reported its full-year and fourth-quarter results with net revenue for 2021 of $56.1 million a decrease of 8% from the previous year. In Q4 net revenue was $22.7 million an increase of 63% year over year. Gross margin improved to a loss of $7 million for 2021 with a gross margin loss of $2.5 million in Q4 2021. In addition, the company sustained a net loss from continuing operations of $230.2 million for full-year 2021. The company recorded an adjusted EBITDA of $32.1 million for full-year 2021. Also important, the company has $1.1 billion in cash, marketable securities, and long-term investments. Also, Sundial has $558.3 million of unrestricted cash, and no outstanding debt to close in 2021.
SNDL stock closed at $0.4968 on May 4th down 26.01% in the past month. The stock has a 52-week price range of $0.40-$1.49 and is up 14.09% year to date. According to analysts at CNN Business SNDL stock has a 12-month consensus price target of $0.76 per share. In this case, this would represent an increase of 52.36% from its last trading price of $0.50.
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