Top Pot Stocks In Q4 2021
For the past several trading sessions top marijuana stocks to invest in have seen some upside in the market. This comes after seven months of declines for the best cannabis stocks to invest in. These gains in the market have been because of the House passing the SAFE Banking Act for the fifth time. In addition, the House is expected to vote on the MORE Act this week.
In 2021 the cannabis sector has seen significant upside whenever Congress mentioned US marijuana legalization and reform. With this being a possibility in the fourth quarter more investors are looking to pot stocks for value. In the cannabis industry, there are many different types of companies to invest in. For starters, you have vertically integrated cannabis companies.
Specifically, these companies produce cannabis from seed to sale and are the core of the industry. Another way to invest in cannabis stocks is the ancillary marijuana companies. Ancillary cannabis companies support the cannabis industry without touching the actual plant. Both types of companies have delivered for investors in the past. As the cannabis industry grows some of these companies are the best positioned to grow alongside the industry.
US Pot Stocks And Cannabis Sales In The Next Five Years
According to a recent report from Statista sales of legal recreational cannabis are expected to reach an estimated $42 billion by 2026. The global cannabis market is forecast to surpass $62 billion by 2026 according to a BDSA report. In 2021 global cannabis sales are estimated to be $31 billion an increase of 41% from 2020. For investors, this could be a growth market to invest in for the long term. Although the best cannabis stocks to buy are known to be volatile they may produce both short-term and long-term returns for investors.
With the possibility of some form of cannabis reform occurring this quarter top pot stocks have some potential in the market. Before investing in cannabis stocks, it’s important to always research a company thoroughly. Studying how the stock moves in the market and looking into a company’s earnings can help you find the best cannabis stocks to invest in. With more states legalizing cannabis and federal cannabis, reform could be time to find the best marijuana stock for your list before October. Let’s look at 2 top US cannabis stocks for your watchlist right now.
Best US Marijuana Stocks For Your October 2021 Watchlist
Green Thumb Industries Inc.
Green Thumb Industries Inc. is a leading cannabis consumer packaged company that has established a large footprint in key markets across the US. At the present time, Green Thumb has 65 retail locations across 14 states and recently opened its third store in New Jersey. In addition, GTI has licenses for 111 retail locations for future expansions. In the second quarter of 2021 GTI opened a Cookies on the Las Vegas Strip through an exclusive partnership with the privately-owned Cookies Brand. Additionally, Green Thumb announced it closed the acquisition of Dharma Pharmaceuticals and is entering the Virginia cannabis market as well.
In August Green Thumb reported its second-quarter 2021 results with revenue of $221.9 million up 85.4% year over year. For the first half of 2021, the company has delivered revenue of $416.3 million an increase of 87.3% from the previous year. As a result, this is the fourth consecutive quarter of positive GAAP net income with $22.1 million or $0.10 per diluted share. Green Thumb has an adjusted operating EBITDA of $79.3 million or 35.7% of revenue.
GTBIF Stock Performance
GTBIF stock closed at $28.50 up 11.77% in the past five trading days. The stock has a 52-week price range of $12.11-$39.11 and has increased 16.34% year to date. According to analysts at Tip Ranks GTBIF stock has a 12-month average price target of $48.64 per share. This forecast would represent an increase of 70.65% from its last trading price. As one of the top-tier US MSOs GTBIF stock could be one of the best marijuana stocks to add to your list in October.
A top ancillary company GrowGeneration Corp. 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. Recently, 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. The site is a one-stop-e-commerce destination with over 10,000 products ranging from nutrients to lighting technology.
In general, the company is expecting to have over 100 locations operating in the US. On September 15th the company announced the opening of the largest hydroponic garden center in Los Angeles County, California. To highlight, GrowGen reported second-quarter 2021 financials with record revenue of $125.9 million up 190% year over year. Notably, the company delivered a net income of $6.7 million and adjusted EBITDA of $14.5 million. As a result, the company raised its revenue guidance in 2021 to $455-$475 million. The company experienced a comparable store sales increase of 60% from the prior year.
GRWG Stock Performance
GRWG stock closed on September 28th at $27.02 up 3.33% in the last five trading days. At the present time, the stock has increased 526.91% in the last three years. According to an analyst 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 103.55% from its last trading price of $27.02. With the possible long-term potential for cannabis investors GRWG stock could be one of the top pot stocks to invest in for 2021.
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