Investing In Cannabis Stocks In July: Things To Know About The Sector
For new investors looking for the best marijuana stocks to buy, this could be a good opportunity to start a list of top performers. As it stands, some of the top cannabis stocks are trading near some of their lowest market value in 2021. This is partly due to Senate Majority Leader Chuck Schumer revealing a draft of the Cannabis Administration and Opportunity Act. At this point, the bill does not have enough votes to get passed in the Senate. By Schumer unveiling a preliminary draft of the federal cannabis bill he has the opportunity to show it to all the stakeholders and garner support.
But shortly after the announcement from Schumer White House press secretary reaffirmed President Biden’s stance on cannabis decriminalization and at this point, there were no endorsements of legislation to report. Although this might hamper the process and push the possibility of American cannabis reform further down the road this is not stopping the cannabis market’s growth on the state level.
In 2021 top marijuana companies continue reporting strong revenue growth for the first quarter. With another round of earnings scheduled for top cannabis companies, a strong report could produce some momentum for the cannabis sector. In the US cannabis companies have been using mergers and acquisitions as a means of rapidly expanding across key markets.
US Cannabis Companies And Top Pot Stock Investments
Some of these companies are now considered the largest revenue-producing cannabis companies in the world. Since 2020 US cannabis companies have experienced tremendous growth and have in many ways performed much better than Canadian cannabis companies. But US cannabis companies have an issue in the market that could be solved with cannabis reform.
For one US vertically integrated marijuana stocks are unable to trade on major US exchanges at this time. This has affected their availability to one of the fastest-growing pools of retail investors using the Robinhood or Webull platforms. Neither of these platforms allows the trading of over-the-counter or OTC stocks to their investors. Which is the place where the top vertically integrated US marijuana stocks reside.
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In many ways, this has made the US cannabis sector miss market growth, but it has left top pot stocks trading with intrinsic value. For investors, it’s important to always do your own due diligence before investing. Researching a company’s financials and studying how the stock performs in the market can help you establish the best position for your investment. With this in mind, let’s take a look at 3 of the top US marijuana stocks to add to your watchlist this weekend.
Top US Marijuana Stocks To Watch
- Trulieve Cannabis Corp. (OTC:TCNNF)
- Curaleaf Holdings, Inc. (OTC:CURLF)
- Cresco Labs Inc. (OTC:CRLBF)
Trulieve Cannabis Corp.
In Florida, Trulieve Cannabis Corp. has established the largest market share with more than 50% of the legal cannabis sale in the state. In addition, once the acquisition of Harvest Health & Recreation Inc. (OTC:HRVSF) is complete the new company will have a consensus 2021 revenue of $1.2 billion. This makes Trulieve the largest revenue-producing cannabis company worldwide. The Company currently has 85 stores in Florida, and 91 nationwide, with more growth, strategically planned.
Trulieve reported a record first-quarter 2021 revenue of $193.8 million producing a net income of $30.1 million. Last month the company opened its first dispensary in the state of Massachusetts giving Trulieve a new market to expand in. The company is expected to release second-quarter 2021 financials on August 12th before the opening.
TCNNF stock closed at $34.50 down 4.38% for the day on July 16th. In the last five days, TCNNF stock has declined by 9.80% and has a 52-week high of 53.73 in March. According to analysts at Tip Ranks TCNNF stock has a 12-month average price target of $68.89 per share. This forecast would represent an increase of 99.68% from its last trading price of $34.50. For this reason, TCNNF stock could be one of the best US cannabis stocks to add to your list In July.
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Curaleaf Holdings, Inc.
Another leading cannabis company with a strong presence in the US is Curaleaf Holdings, Inc. Primarily, the company provides packaged cannabis products and operates 107 retail locations with the latest one in New Jersey. The company has also expanded with Curaleaf International advancing the accessibility of medical cannabis products in Germany through its wholly-owned subsidiary Adven GmbH. Curaleaf reported its first-quarter 2021 revenue of $260 million up 170% year over year. As a guide for the second quarter of 2021, Curaleaf announced revenue guidance of $305-$315 million.
Additionally, Curaleaf announced a recent strategic partnership between Curaleaf’s Select Brand and music and culture authority Rolling Stone. In a new product launch, the two companies are expected to introduce a new line of co-branded Rolling Stone by Select products. The company is expected to release its second-quarter 2021 earnings on August 9th after the close. Currently, Curaleaf has affirmed its 2021 full-year guidance for revenue of $1.2 -$1.3 billion.
CURLF stock closed on July 16th at $13.32 and has lost 5.25% in the past five days. In February CURLF stock reached a 52-week high of $18.38. According to analysts at Market Beat CURLF stock has a consensus price target of $23.69 per share. This would represent an increase of 77.8% from its last trading price of $13.32. With this in mind, CURLF stock could be a top marijuana stock to buy for 2021.
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Cresco Labs Inc.
Cresco Labs Inc is one of the largest vertically integrated MSOs in the US. and the number one wholesaler of branded cannabis products. At the present time, the company operates 33 retail locations across 10 states. Recently opening its fourth Sunnyside dispensary in Pennsylvania the company is expanding in key markets. In its first-quarter 2021 financials, Cresco saw record revenue of $178 million. The company expects to reach an annualized revenue of more than $1 billion in 2021. In Q1 2021, Cresco delivered gross profits of $87.0 million or 48.8% of revenue. As a result, the company now expects gross profits margins of more than 50% for the remaining 3 quarters.
In June Cresco announced a portfolio expansion of its Good News brand with more selections in the edibles and vaping areas. Under the Good News brand, Cresco is launching Counting Sheep, Day Off, and Pride products. Currently, these edibles and vape products will be available in California, Illinois, and Michigan. The company is expecting to announce its second-quarter 2021 financials on August 13th before the opening.
CLRBF stock closed on July 16th at $11.00 down 5.09% in the last five days. In February CRLBF stock reached a high of $17.49 and has gained 114.42% in its 1-year performance. According to analysts at Tip Ranks CRLBF stock has a 12-month average price target of $21.13 per share. This forecast would represent an increase of 92.09% from its last trading price of $11.00. As we start setting up our stock list for next week CRLBF stock could be a top US marijuana stock to add right now.