Top Marijuana Stocks In 2021 And Cannabis Sector Performance
In 2021 top marijuana stocks have seen substantial market volatility so far this year. After reaching new highs in February many leading cannabis stocks have spent the last 4 months seeing significant market declines. But with the cannabis sector trading near its lowest price points this year it could be time to find the best marijuana stocks to buy for the summer. Currently, many investors are torn between investing in US cannabis stocks or Canadian pot stocks.
Realistically investors could achieve value in either sector but to find the most value requires some research into the leading cannabis companies. So far in 2021, the Canadian cannabis sector saw the most upward momentum in the first quarter. Although they have seen the most upside Canadian cannabis companies have not performed as well as US cannabis companies during the pandemic. In general US cannabis companies have managed to deliver substantial revenue growth in the first quarter of 2021.
Unfortunately for investors, this has not translated into market gains for top US marijuana stocks. Instead, the US cannabis sector has seen a sharp decline in value since February highs. Now in June, both cannabis markets could begin to see some upward momentum in the coming months. One possible catalyst could be US federal cannabis reform and legalization.
What Is A Better Investment US or Canadian Cannabis Stocks?
Currently, there are a couple of bills going around Capitol Hill that could establish cannabis reform in 2021. Since the presidential election, many investors have invested in cannabis stocks with the belief that it would be decriminalized and legalized on the federal level. Primarily this would allow US companies to do business across state lines and possibly allow Canadian cannabis companies into the American market.
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As this possibility grows closer it could be time to find some top marijuana stocks to add to your watchlist in June. With this in mind, we can look at some leading cannabis companies from both markets. Currently, these top marijuana stocks may possibly deliver significant gains for investors. As things continue to benefit the cannabis industry these could be 2 top marijuana stocks to buy this summer.
Marijuana Stocks To Watch
- GrowGeneration Corp. (NASDAQ:GRWG)
- HEXO Corp. (NYSE:HEXO)
GrowGeneration Corp.
GrowGeneration Corp. owns and operates retail hydroponic and organic gardening stores across the US. At the present time, the company has 55 organic garden centers across 12 states. Specifically, the company markets and distributes organics, lighting and hydroponic products, and other equipment to assist in the growing process. In its latest first quarter 2021 financials, GrowGen increased revenue by 173% to $90 million. Additionally, comparable same-store sales grew by 51% from the prior year. Also important the company raised its revenue guidance to $450-$470 million and an adjusted EBITDA guidance of $54-$58 million.
In June the company announced the launch of GrowGeneration.com the company’s newly redesigned e-commerce platform. Specifically, the site is a one-stop-e-commerce destination with over 10,000 products ranging from nutrients to lighting technology. At the present time, GrowGen expects to have 60 gardening centers across 15 states by the end of the year. In the future, the company expects to have over 100 locations operating in the US by 2026.
GRWG stock is trading at $40.76 heading into the close on June 16th. Currently GRWG stock is almost flat year to date with a high in February of $67.75. According to analysts at Market Beat GRWG stock has a consensus price target of $56.25 per share. In essence, this would represent an increase of 40.6% from its current price target. For this reason, GRWG stock could be a top US cannabis stock to invest in for 2021.
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HEXO Corp.
HEXO Corp. is one of the leading Canadian producers of cannabis products for the global markets. The company is finding success in the Canadian recreational market with an extensive brand portfolio. In addition, HEXO is producing medical sales in Canada, Israel, and Malta. Also important in the US HEXO serves the Colorado market with Truss CBD USA a joint venture with Molson Coors. In June HEXO announced it made the closing arrangements for acquiring Zenabis Global Inc. Primarily Zenabis is a Canadian licensed cultivator of recreational and medical-grade cannabis. This deal will help solidify the future expansion for HEXO in Canada, Europe, and other markets.
On June 14th HEXO announced its 3rd quarter fiscal 2021 financial results. Specifically, the company’s total sales increased by 2% year over year. Additionally, total non-beverage adult-use net revenue in Canada excluding Quebec increased by 169% from Q3 2020. In Quebec, the company maintains the number one position for non-beverage adult-use cannabis. Also, HEXO maintained the number one position in the beverage category as well. But the company still saw total net sales decline by $10.2 million from the previous quarter.
HEXO stock closed on June 16th at $5.89 up 61.68% year to date. In February HEXO stock reached a new high of $11.04 and is down 14.88% in the past five days. According to analysts at CNN Business HEXO stock has a 12-month median price target of $6.39 per share. This would represent an increase of 8.43% from its current levels. With this in mind, HEXO stock could be a top Canadian marijuana stock for your watchlist this summer.
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