Cannabis Industry Investing In 2021
As it stands more investors are looking for the best marijuana stocks to buy in 2021. At the present time, top US cannabis companies have been expanding rapidly and showing significant revenue growth this year. For the next five years, the American cannabis market is expected to grow at a compound annual growth rate of more than 17%. Actually, according to Headset report US cannabis sales are expected to reach $22.7 billion in 2021. This is up significantly from the $18.5 billion produced in 2020.
Currently, 38 states in the US have established cannabis legalization and the number seems to be growing quickly. In addition, on the federal level Senators, could introduce cannabis reform legislation before June. In general, the cannabis industry could be one of the fastest-growing industries for the next few years. Given that right now top marijuana stocks are trading at some of the lowest levels seen in 2021 it could be time to find the best entry point for your investment.
But before investing in cannabis stocks there are a few important factors to consider. For one the best marijuana stocks to invest in are known for having significant market volatility. This makes researching these cannabis companies and finding the best entry point for your position a big part of seeing a return.
Impressive First Quarter 2021 Revenues For Leading US Cannabis Companies
So far in May top cannabis companies have been showing significant growth in the first quarter. Although this has not translated into gains in the market it does show future potential for the cannabis industry. Especially in the US, the next five years could have significant market growth.
In reality, the best-positioned cannabis companies will benefit greatly from the growing market. Currently, there are many cannabis companies that are reporting strong earnings growth. In addition, these companies are expanding across the American market at a rapid pace.
[Read More] 2 Marijuana Stocks To Watch Before June 2021
Recently these cannabis stocks have been showing some upward momentum in May. But a few months of declines have left them at better levels to start a position. With this in mind, we can do some research into some of the leading marijuana stocks to buy right now. These cannabis stocks could produce gains for investors in 2021.
Marijuana Stocks To Watch
Ayr Wellness Inc.
Currently, Ayr Wellness Inc. has become one of the fastest-growing cannabis companies expanding through significant acquisitions into key markets across the US. Recently Ayr entered Florida where it now has the fourth-largest footprint. At the present time, Ayr has 34 dispensaries in the state and a total of 50 stores nationally. On May 26th Ayr released its first-quarter 2021 results with $58.4 million in revenue up 74% year over year.
In addition, the company had a Q1 adjusted EBITDA of $18.4 million on a US GAAP basis up 136% from the year prior. At the present time, Ayr is operating at a loss of $8.4 million which includes a one-time expense of $26.5 million. Additionally, the company provided a second-quarter 2021 guidance of an estimated $90 million in revenue. This would be an increase of 218% year over year and 54% sequentially.
AYRWF stock is trading at $30.62 On May 27th during the first hour of trading. In February AYRWF stock saw a high of $37.50 and is up 25.55% year to date. According to analysts at Tip Ranks AYRWF stock has a 12-month average price target of $45.47 per share. From current levels, this would represent an increase of $47.64%. For this reason, AYRWF stock could be one of the best marijuana stocks to buy right now.
TerrAscend is a leading North American cannabis operator with operations in Pennsylvania, New Jersey, and California, and licensed cultivation and processing operations in Maryland and Canada. Recently TerrAscend Corp. announced it closed the acquisition of Keystone Canna Remedies increasing the company’s footprint with three more retail locations to its Pennsylvania presence. Primarily, the company operates the Apothecarium a dispensary that has won previous awards as well as best in class cultivation. On May 19th TerrAscend reported its first-quarter net sales of $53.4 million and adjusted EBITDA of $22.6 million.
In May TerrAscend announced it has opened its largest retail location with a 6500 square foot Apothecarium dispensary in New Jersey. Additionally, the company has also expanded its Northeast footprint to now include Maryland. In its last earnings, the company is also raising its full-year 2021 guidance for net sales to exceed $300 million and an adjusted EBITDA to be more than $128 million.
TRSSF stock is trading at $11.57 up 15.92% year to date. In its 1-year performance, TRSSF stock is up an impressive 442.59% and has a 52-week high of $16.25 in February. According to analysts at Market Beat TRSSF stock has a consensus price target of $18.54 per share. In essence, this would represent an increase of 59.2% from current levels. With this in mind, TRSSF stock could be one of the top US marijuana stocks to buy before June.