Cannabis Industry History In The Making
This week could be a historical moment for marijuana stocks and the U.S. cannabis industry. As the House of Representatives votes on the MORE Act, things could start changing rather quickly in the U.S. In detail, the MORE Act could end federal cannabis prohibition and also reduce prior marijuana convictions. Although the challenge of getting passed a Republican lead senate could prove trying for the bill, things in fact look promising for the cannabis sector. In reality, 2020 has been a great year for cannabis as a whole in the U.S. Recently most leading cannabis companies have reported record 3rd quarter 2020 revenue showing how an increase in demand and continued expansion has helped the industry prosper.
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Generally, leading companies like Cresco Labs Inc. (CRLBF Stock Report) are going into December showing more growth potential for the end of the year. Despite this fact, the U.S. economy is not out of the clear with the effects increasing coronavirus cases can have on the stock market. So far vaccine optimism and solid financials are bringing pot stocks in the market trading higher. As November comes to an end and different issues arise with Covid, the question is will the stock market stall and have a Santa Claus rally to end December?
What Does December Hold For Marijuana Stocks?
While November has set trading records in the Dow Jones, and Nasdaq, December could have a hard time continuing the market rise. Currently, many states are reporting the possibility of strain to the medical system this month and that’s not good news heading into the Holidays. In essence, another possible shutdown could definitely be a showstopper to increasing market value. Even though marijuana companies performed well during 2020 that doesn’t guarantee it would display the same results a second time around. In general, this could be cause for concern especially if you are thinking of long-term investments in the cannabis sector. In the event the MORE Act legislation is passed in both bodies of government this month, cannabis stocks on your watchlist could continue their upward trajectory.
Although the U.S. cannabis industry could have its issues going forward there are defiantly some marijuana companies that have strong potential for 2021. Most likely these companies are better positioned to withstand more economic instability. In general, these companies are strong industry leaders that have performed well in 2020 and could still see a massive upside. With this in mind let’s do some research into 2 marijuana stocks to watch in December.
U.S. Marijuana Stocks To Watch #1: Curaleaf Holdings, Inc.
Curaleaf Holdings, Inc. (CURLF Stock Report) is the largest MSO in the U.S. with a market cap of over $7 billion. The company has a presence in 23 states, with 96 operating dispensaries, this shows strength in the U.S. cannabis market. Recently Curaleaf reported record managed revenue in Q3 of 2020 of $193.2 million up 163% versus the same period in 2019. In addition, the company also has record year-to-date managed revenue of $419.6 million. On November 20th Curaleaf announced the launch of its fast onset Nano Chews in Florida. Curaleaf’s sugar-free chews offer a reliable and consistent cannabis experience and are another product available at retail locations across the states. Actually, Florida’s Department of Health officially authorized medical applications of edibles in September. Also prompting Curaleaf to release other products in the state such as Sublingual Tablets, Select Elite Live cartridges, and RSO.
CURLF stock reached year to date highs last week of $11.69. The stock ended up finishing the week at $10.91 at the close. Currently, analysts believe the stock could still be undervalued at current prices. In fact, analysts have given CURLF stock a median price target of $14.16 an almost 30% increase from current levels. Also, the stock is up almost 73% year-to-date and could continue its climb. For this reason, CURLF stock is cannabis stock for your watchlist for December.
U.S. Marijuana Stocks To Watch #2: Jushi Holdings Inc.
Jushi Holdings Inc. (JUSHF Stock Report) is a vertically integrated multi-state operator that has grown operations, with new cultivation, and retail licenses across the U.S. The company currently has 30 cannabis retail locations, 3 cultivation sites, and 4 manufacturing facilities. In general, the company focuses on building a portfolio of branded cannabis assets through acquisitions in the U.S. Recently Jushi announced 3rd quarter 2020 revenue of $24.9 million an increase of 67% sequentially. In addition, the company’s gross profits increased by 64% sequentially to $12.3 million. Also, in November Jushi exercised its right to accelerate the expiry date of share purchase warrants issued in conjunction with April 2018 and June 2018 private placements. In reality, the warrants have a potential value of approximately $30 million in gross proceeds to the company.
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JUSHF stock is starting the week trading close to its high of $3.59 on November 20th. In general, the stock has been increasing for most of the month. Recently, analysts have predicted JUSHF stock could be an $8.39 stock in a year’s time. In fact, this would be over 108% gain from current levels. Although Jushi is a smaller company it has much more rapid growth potential. With this in mind, JUSHF stock is one for your marijuana stock watchlist for 2021.