Cannabis Stocks Slowly Recover In May
As May comes to a close this week top marijuana stocks have been attempting to regain some of the value, they lost in the first quarter. Although the best cannabis stocks to buy are trading much lower in the market many analysts predict the cannabis sector could begin to see some upward momentum. After a few months of declines, many leading pot stocks could be at levels that would produce gains with some upside in the sector.
One possible catalyst that could affect how marijuana stocks to trade this week is federal cannabis reform and legalization. In detail this week could bring the reintroduction of the MORE Act with some new revisions. In 2021 the only market mover for the cannabis sector has been cannabis reform and legalization. Currently, in the US more than 38 states now have cannabis programs and that number has continued to grow.
Currently, the cannabis market is growing rapidly in the U.S. as well as other markets like Canada and the UK. In fact, analysts from BDSA predict global cannabis sales will grow from $21 billion in 2020 to $55.9 billion in 2026. In reality, this growth can already be seen in the earnings reports from top marijuana companies. At the present time, many are reporting first quarter 2021 results that show significant revenue growth this year.
Top Marijuana Stocks And 2021 Market Momentum
As cannabis companies deliver strong earnings top marijuana stocks have not seen any foreseeable gains from recent results. In fact, the best marijuana stocks to invest in are trading much lower than the highs they achieved in February. This year the only event that has moved cannabis stocks higher is federal legalization and reform.
Because of the lower stock prices for pot stocks, this could be a good opportunity to start a position in the best marijuana stocks to buy in 2021. Finding the best cannabis stocks requires some research and due diligence from investors.
Because the cannabis sector has so much volatility it’s important to establish a good entry position for your investment. Essentially this is much easier when you have watched how a pot stock performs in the market and understand its trading patterns. With this in mind, we can research some leading cannabis stocks to watch right now. Currently, in the US these could be the best marijuana stocks to buy in 2021.
Marijuana Stocks to Watch:
Trulieve Cannabis Corp.
At the present time, Trulieve Cannabis Corp. is the largest cannabis company in Florida and now has become the largest MSO in the US. Once complete the acquisition of Harvest Health & Recreation Inc. (OTC: HRVSF) will see the two companies combine to have a consensus 2021 revenue of $1.2 billion. Actually, with this acquisition, Trulieve is now considered the largest revenue-producing cannabis company in the world.
In the agreement, Trulieve will provide Harvest shareholders 0.1170 of a TCNNF stock upon completion. As it stands, the two company’s combined will operate in 11 states with a total of 126 dispensaries servicing both the medical and recreational cannabis markets. In fact, with a combined adjusted EBITDA of $266 million and a 2021 consensus adjusted EBITDA of $461 million the new Trulieve could be the most profitable cannabis company in the US. On May 13th Trulieve reported a record first-quarter 2021 revenue of $193.8 million generating a net income of $30.1 million.
TCNNF stock closed on May 24th at $39.41 per share up 23.24% year to date. With a high in March of $53.73, the stock has increased 201.39% in its 1-year performance. According to analysts at Tip Ranks TCNNF stock has a 12-month average price target of $70.30 per share. In essence, this would represent an increase of 78.38% from current levels. For this reason, TCNNF stock is one of the top marijuana stocks to buy for 2021.
Curaleaf Holdings, Inc.
Another leading cannabis company that has been expanding recently in the US is Curaleaf Holdings, Inc. Primarily, the company provides packaged cannabis products and has established a footprint with 106th retail locations nationwide. In May Curaleaf reported its first-quarter 2021 revenue of $260 million up 170% year over year. Additionally, Curlaeaf announced revenue guidance for Q2 2021 of $305-$315 million.
On May 17th the company announced it acquired the Los Suenos Farms the largest outdoor grow facility in Colorado. In detail, the facility covers 66 acres of cultivation space. Also, Curaleaf will receive two dispensary locations serving adult-use cannabis. At the present time, the company is reporting strong Curaleaf Holdings, Inc.Q1 results without the addition of sales from New York and New Jersey. Once that is factored in Curaleaf could beat its 2021 full-year guidance for revenue of $1.2 -$1.3 billion.
CURLF stock closed on May 24th at $14.35 up 21.04% year to date. In February the stock reached a high of $18.38 and is up 143.22% for its 1-year performance. According to analysts at Market Beat CURLF stock has a consensus price target of $22.50 per share. This would be a forecast upside of 56.8% from current levels. With this in mind, CURLF stock could be the best cannabis stock to invest in to close out May.