Top Canadian Cannabis Stocks For Q4 2021
Are you looking for ways to invest in top marijuana stocks in September? At the present time, the best cannabis stocks to buy have been trading near their lowest market value this year. Closing this week, the cannabis sector continues to trade at some of the lowest price points seen in 2021. Currently, this could be an opportunity for new investors to find the top pot stocks at lower stock prices. One area of the cannabis sector that has seen significant volatility this year is Canadian marijuana stocks.
At the beginning of the year, Canadian cannabis stocks saw the most upward momentum until mid-February. After reaching new highs on February 10th most of the cannabis sector has experienced steep declines. This is partly due to lawmakers not passing federal cannabis legalization and reform earlier in the year. With several legislations circulating in Congress, investors were expecting a much quicker turnaround for reform in the US.
This would be a boost for leading Canadian cannabis companies which have been strategically planning entry into the US market. As we enter Q4 2021 cannabis investors are keeping an eye out for any new updates from Congress regarding the federal legalization process. In the meantime, on the state level, the cannabis industry continues to grow rapidly. Most leading cannabis companies are reporting strong earnings with Canadian companies improving their balance sheets in recent earnings.
Canadian Cannabis Sales And Industry Growth In The Us
In Canada, cannabis sales increased 58.5% year over year in June to a record C$318.7 million. As both markets continue to prosper leading companies are establishing their market share. Although the Canadian cannabis companies are not performing as well as the US companies once changes in US federal policy change, they could expand into the American cannabis market. Before investing it’s important to always do your research on a company and the stocks market performance. In many cases, this can help you establish the best positions for your investments.
As we end this week in trading, we can make a list of the best Canadian marijuana stocks to invest in right now. One important factor to consider is that cannabis stocks are known for having significant market volatility. This makes it important to find the best entry for your position. As we head into the weekend let’s look at 2 top Canadian marijuana stocks for your list next week.
Top Canadian Marijuana Stocks To Watch In Q4 2021
Village Farms International, Inc.
Village Farms International, Inc. and its subsidiaries, produces, markets, and distributes greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. Additionally, the company began focusing on opportunities in the cannabis and CBD segments in Canada and the US. As it stands, Village Farms wholly-owned subsidiary Pure Sunfarms is one of the largest cannabis operations in North America. This summer Pure Sunfarms received a cannabis cultivation license for a delta 2 greenhouse increasing production capacity by 50%.
In general, Pure Sunfarms reported second-quarter 2021 results achieving 135% year over year growth in retail branded sales. The company has total net sales for the first six months of $42.2 million an increase of 70% from the same period in 2020. Pure Sunfarms achieved 38% sequential net sales growth and 192% sequential adjusted EBITDA growth. As a result, the company has become the top-selling licensed producer of dried flower in Ontario, Alberta, and British Columbia.IN August Village farms acquired 100% of Balanced Health Botanicals a profit leader in the US CBD market.
VFF Stock Performance
VFF stock closed on August 26th at $9.41 up 7.18% in the last five days. The stock has a 52-week price range of $4.27-$20.32 and is down 7.20% year to date. According to analysts at CNN Business VFF stock has a 12-month average price target of $18.00 per share. Currently, this represents an upside of 91.29% from its last trading price.
HEXO Corp. is a Canadian company with award-winning cannabis products in the market. Primarily the company has a presence throughout a global industry, serving the Canadian recreational market with an extensive brand portfolio. Specifically, HEXO is producing medical sales in Canada, Israel, and Malta. In addition, the company has been expanding into is the US cannabis market as well. Right now, HEXO serves the Colorado market with Truss CBD USA a joint venture with Molson Coors. Also, the company acquired Zenabis Global Inc. a Canadian licensed cultivator of recreational and medical-grade cannabis. Both acquisitions will help solidify the future expansion for HEXO in Canada, Europe, and the US market.
In its third-quarter fiscal 2021 results, the company reported that total net sales increased 2% year over year. Total net sales declined by $10.2 million from Q2 FY21. This was partly due to the company’s production issues relating to certain cannabis products. Additionally, the company did not produce any international medical sales in that quarter due to revised testing and additional certifications by the Israeli government. HEXO also purchased its first US production facility through a wholly-owned US subsidiary. The 50,000 square foot facility is in Fort Collins, Colorado, and will provide high-quality Powered by HEXO products across the US. This month, HEXO stock began trading on the Nasdaq on August 24th.
HEXO stock performance
HEXO stock closed on August 26th at $2.45 down 23.44% in the last five days of trading. The stock has a 52-week price range of $2.29-$11.04 and is down 33.42% year to date. According to analysts at Tip Ranks HEXO stock has a 12-month average price target of $5.65 per share. In essence, this would represent an upside of 130.61% from its last trading price of $2.45. With this in mind, HEXO could be a Top marijuana stock for your list in September.