Top Cannabis Stocks In 2021 And Federal Marijuana Legalization and Reform
Are you looking for the best marijuana stocks to buy this week? In October the cannabis sector has declined to some of the lowest trading levels seen so far in 2021. This is partly because the US has yet to federally legalize cannabis in 2021. At the present time, things have continued to be passed in the House with the SAFE Banking Act and the MORE Act.
But we continue to see a hold up in the Senate and have not seen a formal piece of legislation concerning Chuck Schumer’s Cannabis Administration and Opportunity Act. This has impacted the cannabis sector in the market and continues to be the main cause of this year’s downtrend. In the US leading cannabis companies have been delivering strong earnings and revenue growth. Although this has not translated into market gains it does show the best performing US cannabis companies.
With another round of cannabis financials kicking off soon good financials and low pot stock prices could mean an opportunity for new investors. From current trading, many top marijuana stocks are forecast by analysts to see significant upside. Researching leading companies and finding the best-performing ones can help you narrow down your list of companies to watch. In addition, studying how a stock performs in the market and finding the best entry point can help you solidify the largest returns.
Finding The Best Pot Stocks To Invest In And Market Volatility
Before investing in cannabis stocks, it’s important to know they are considered some of the more volatile stocks in the market. But the cannabis industry is growing rapidly and will continue expanding for the next five years. According to a new BDSA report, US cannabis sales are forecast to surpass $24 billion in 2021. This report anticipates US sales to reach $47.6 billion in 2026.
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For investors, there could be both short and long-term plays in the top pot stocks. With the overall markets delivering strong earnings and getting over inflation concerns we could begin to see some upside from marijuana stocks. As we start a new week let’s look at some top US cannabis stocks for your watchlist before November.
Top US Marijuana Stocks To Watch This Week
- Ayr Wellness Inc. (OTC: AYRWF)
- Curaleaf Holdings, Inc. (OTC: CURLF)
Ayr Wellness Inc.
Ayr Wellness Inc. is the fourth largest US MSO in the Florida cannabis market. At the present time, the company has 42 operating dispensaries in Florida and a total of 59 stores nationwide. To highlight, 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 addition, Ayr has also agreed to acquire Tahoe Hydro an award-winning cultivator and high-quality cannabis flower produced in Nevada. In September the company signed an agreement to acquire the owner of Levia cannabis-infused hard seltzers. On October 4th the company closed the acquisition of PA Natural Medicine LLC giving AYR a strong presence in Pennsylvania.
Ayr reported its second-quarter 2021 results with revenue of $91.3 million up 222% year over year. To highlight the company adjusted EBITDA was $27.4 million on a US GAAP basis up 225% year over year. Ayr sustained a US GAAP operating loss of $24.9 million which included one-time expenses, and non-operating adjustments of $52.3 million. The company raised its 2022 revenue target to $800 million with a $300 million AEBITDA. Additionally, Ayr provided a 3Q 2021 guidance of $100 million in revenue.
AYRWF stock closed on October 22nd at $21.28 down 10.70% in the past month. Currently, the stock has a 52-week price range of $20.00- $37.50 and is down 10.51% year to date. According to analysts at Tip Ranks AYRWF stock has a 12-month average price target of $56.12 per share. In essence, this would represent an upside of 163.72% from its last trading price.
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Curaleaf Holdings, Inc.
Next on the list is Curaleaf Holdings, Inc. a US industry leader that provides packaged cannabis products and operates 109 retail locations nationwide. Also, Internationally, the company has also begun expanding with Curaleaf International advancing the accessibility of medical cannabis products in Germany through its wholly-owned subsidiary Adven GmbH. The company has the popular brand Select as one of its leading brands in the US. In October Curaleaf diversified its Select brand with edible offerings called Select Snooze Bites. This product has a combined THC and CBN fast-acting platform that can be used as a nighttime wind-down product. In addition, the company has expanded its Select brand Rolling Stone partnership to other US markets.
Curaleaf reported record second-quarter 2021 results with revenue of $312 million. Its second-quarter revenue is up 20% from Q1 2021 and 166% year over year. Specifically, the company reported second-quarter 2021 adjusted EBITDA of $84 million up 201% year over year. As it stands, gross margins reached about 50% driven by higher yields at existing facilities. During Q2 the company opened another five dispensaries and continues to expand its footprint in the third quarter. The company will release its 3rd quarter 2021 financials on November 8, 2021, after the market close.
CURLF stock is closed at $10.21 on October 22nd down 15.90 in the past month. According to analysts at Market Beat CURLF stock has a consensus price target of $24.68 per share. In this case, this would represent an upside of 141.7% from its last trading price of $10.21. For investors looking for the best US cannabis companies for their list right now, these 2 US pot stocks could be potential candidates.
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