Top Cannabis Stocks As Possible Federal US Cannabis Reform Nears
Are you looking for the best marijuana stocks to invest in during this downtrend in the cannabis sector? In November the most top cannabis stocks have declined significantly mostly due to the delays with Congress ending federal prohibition. Although there has been a recent bipartisan push for federal cannabis reform there are some important variables that the two parties are still trying to resolve.
For one Senate Majority Leader, Chuck Schumer has previously announced that he would not pass cannabis banking reform before establishing federal marijuana legalization and decriminalization. But this week Senator Jacky Rosen is leading a bipartisan effort to keep SAFE Banking included in the NDAA. As the top marijuana stock trade near the lowest price points seen in 2021, it could be time to make a watchlist of top pot stocks.
For many new retail investors, it could be difficult to gain exposure to some of the best US cannabis stocks to buy. One reason for this goes back to federal marijuana prohibition. In specific vertically integrated cannabis companies in America are unable to trade on major US indexes. This leaves them trading on the OTC markets which is not available to new retail traders using platforms like Robinhood Markets, Inc. (NASDAQ: HOOD), and WeBull. Because of this top US cannabis stocks have been denied one of the fastest-growing retail investment pools in recent years.
Investing In Top US Pot Stocks Before Federal Cannabis Reform
As investors continue to wait for the federal government to catch up to the cannabis market’s growth on the state level, these lower price points could be an opportunity for investors. In November many top-tier US companies have delivered strong earnings that show significant growth and expansion. Although this has not translated into gains in the market it does show how rapidly the cannabis industry is growing in the US right now. With this in mind let’s look at 2 of the best US marijuana stocks to watch before December.
Best US Marijuana Stocks To Add To Your Watchlist For December 2021
Ayr Wellness Inc.
At the present time, Ayr Wellness Inc. has also built a strong presence in the Florida cannabis market operating 42 dispensaries in Florida and a total of 59 stores nationwide. In addition, the company entered the Illinois market with the acquisition of Herbal Remedies Dispensaries, LLC. Ayr received a provisional license to sell adult-use cannabis at greater Boston dispensaries in Massachusetts. In October the company launched Kynd premium flower in Arizona. On November 12th the company opened its seventh affiliated operating dispensary in Pennsylvania.
On November 22nd Ayr released its third-quarter 2021 earnings with revenue of $96.2 million up 111% year over year. In general, the company had an adjusted EBITDA of $26 million up 40% year over year. Ayr sustained a US GAAP operating loss of $8.9 million which includes a one-time expense and non-operating adjustments of $34.9 million. In addition, the company provided Q4 2021 guidance for over 10% sequential growth and a flat Adjusted EBITDA from Q3 in Q4. For 2022 Ayr revised its Adjusted EBITDA target to $250-$300 million and maintained a 2022 revenue target of $800 million.
AYRWF Stock Performance
AYRWF stock closed on November 29th at $17.15 down 14.71% in the last month. Currently, the stock has a 52-week price range of $16.68-$37.50 and is down 23.42% year to date. According to analysts at Tip Ranks AYRWF stock has a 12-month average price target of $48.13 per share. In essence, this would represent an upside of 180.64% from its last trading price of $17.15.
Verano Holdings Corp.
Verano is one of the largest multi-state operators providing regulated cannabis products to US cannabis consumers. Primarily, the company produces premium cannabis products sold under its portfolio of consumer brands. Presently, Verano has active operations in 11 states with 90 operational dispensaries nationwide, and 12 cultivation and processing facilities. In Florida, the company has 39 dispensaries which is a significant presence in that market. Verano expects to surpass 90 dispensaries in 2021. Specifically, the company operates dispensaries under retail brands Zen Leaf™ and MÜV™ catering to both medical and adult-use markets. In October the company opened a dispensary with a drive-through on Flamingo Road in Las Vegas.
Recently Verano completed the acquisition of TerraVida and The Healing Center. Ultimately, this acquisition gives Verano six dispensaries in Pennsylvania and a permit to build an additional three in the state. Earlier in the year, the company opened a flagship Pittsburgh dispensary with a four-lane drive through. In November the company announced its third-quarter 2021 results with revenue of $207 million up 106% year over year. Additionally, gross profit increased 33% sequentially on an unadjusted basis to $133 million or 64% of revenue. In Q3 Verano expanded its footprint with seven new dispensaries across its core markets.
VRNOF Stock Performance
VRNOF stock closed on November 29th at $11.43 down 2.76% in the last five trading days. Currently, the stock has a 52-week price range of $9.86-$28.00 and is down 40.44% in the last six months. According to analysts at Market Beat VRNOF stock has a consensus price target of $33.25 per share. In this case, this would represent an upside of 185.9% from its last trading price. As we continue to see advances in federal marijuana policy these could be some of the best US marijuana stocks to buy right now.
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