Top Cannabis Stocks In September
Are you looking for ways to invest in top marijuana stocks while the sector is down? In September we have continued to see declines in value for most cannabis stocks. But recent slides could be placing top pot stocks at better levels to start an investment. For new investors, cannabis stocks are currently trading near some of their lowest stock prices in 2021. After reaching new highs in February the cannabis sector has spent the last seven months seeing declines in value.
In part, this is because Congress has not passed any federal cannabis reform and legalization this year as expected. On Capitol Hill, Senate Majority Leader Chuck Schumer unveiled a draft of the Cannabis Administration and Opportunity Act to gain support from both parties on the legislation. After several months with no formal introduction in Congress, it looks like Schumer is having trouble getting enough votes to pass the legislation.
But Mayors across the US are asking Congress and Biden to act on cannabis legalization. Recently, The US Conference of Mayors passed a resolution calling on Biden and Congress to reschedule and legalize cannabis and recognize marijuana’s medical value. The struggle to achieve federal cannabis reform has weighed heavily on the cannabis sector in the market.
Investing In Pot Stocks The Risk And Rewards
As it stands some of the best marijuana stocks to invest in could be at good price points to start a position. Finding these pot stocks requires some due diligence from the investor. Researching a company’s financials and studying how the stock moves in the market can help establish the best positions. It’s important for investors to realize that the best cannabis stocks are known for having significant market volatility. This makes finding the right entry for your investment very important to achieve returns. One area of the cannabis market that has seen significant declines this week is ancillary pot stocks.
[Read More] US Cannabis Stocks For Your Watchlist Right Now
Ancillary cannabis companies are those companies that support the cannabis industry without toughing the actual plant. This part of the cannabis sector has performed well in the past and this recent loss in value could be a good setup for future upside. Another area of the cannabis market that is primed for investors is marijuana penny stocks. Although this area has the most extreme market volatility it has also produced significant gains in the past. Let’s look at 2 top cannabis stocks for your list in September.
Best Marijuana Stocks To Watch Right Now
GrowGeneration Corp. is a leading owner and operator of retail hydroponic and organic gardening stores across the US. Primarily, the company markets and distributes organics, lighting, and hydroponic equipment mainly used by cannabis cultivators. At the present time, GrowGen has 60 organic garden centers across 12 states recently opening its 6th store in Michigan. To close August the company acquired Commercial Grow Supply to strengthen its footprint in southern California. Additionally, the company has also been working on its online presence with the launch of GrowGeneration.com. Recently, the company launched a newly redesigned e-commerce platform. The site is a one-stop-e-commerce destination with over 10,000 products ranging from nutrients to lighting technology. In the next five years, the company is expecting to have over 100 locations operating in the US.
In August GrowGen reported second-quarter 2021 financials with record revenue of $125.9 million up 190% year over year. The company delivered a net income of $6.7 million and adjusted EBITDA of $14.5 million. In addition, the company raised its revenue guidance in 2021 to $455-$475 million. As a result, the company experienced a comparable store sales increase of 60% from the prior year. Although GrowGen delivered strong revenue growth GRWG stock saw the sharpest selloff of all ancillary marijuana stocks.
GRWG stock closed on September 15th at $25.83 down 17.56% in the last five days. The stock has a 52-week price range of $14.25-$67.75 and is down 35.78% year to date. According to analysts at CNN Business GRWG stock has a 12-month median price target of $55.00 per share. In this case, this would represent an upside of 113.01% from its last trading price of $25.82.
IM Cannabis Corp.
IMC is a global operator in the medical and adult-use recreational cannabis sector, that supplies products to Israel, Germany, and Canada. Based in Israel, the company has established the IMC brand as a staple in the Israeli medical cannabis industry. Recently, IMC has expanded its business to offer services to the medical cannabis industry. Specifically, the company operates in Europe through Adjupharm, a German-based subsidiary, and EU-GMP-certified medical cannabis distributor. The company recently announced the completion of a state-of-the-art logistics center in Germany. Once it’s operating this facility will allow Adjupharm to streamline its supply chain including repackaging of bulk cannabis.
In August the company announced a partnership with cbdMD Inc. to launch cbdMD products in Israel. On August 16th IMC announced its Q2 2021 revenues of $11.1 million a 27% increase from Q1 2021. The company saw an adjusted EBITDA loss for Q2 2021 of $5.8 million. The company is expecting significant revenue growth in the third quarter of 2021 from growth in Germany. Notably, the company is resuming shipments at the start of the third quarter as well as the additional agreements to ensure the flow of EU-GMP supply.
IMCC stock closed on September 14, 2021, at $3.05 down 10.03% in the last five trading days. The stock has a 52-week price range of $0.784-$11.63 and is down 60.90% year to date. According to analysts at Tip Ranks IMCC stock has a consensus price target of $8.06 per share. In essence, this would represent an upside of 164.26% from its last trading price of $3.05. For this reason, these two stocks could be the top marijuana stocks for your list this week.
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