Investing In Marijuana Stocks And Understanding The Cannabis Sector
As the overall markets improved in June top marijuana stocks to buy have also experienced some gains in value. One area of the market that is beginning to show upward momentum for investors is US marijuana stocks to buy. In 2021 US cannabis companies have delivered strong revenue growth and continue to expand rapidly into new US markets. Since the pandemic, most American cannabis companies have managed to continue to show significant growth for investors.
Although in 2021 top companies delivered phenomenal earnings that did translate into market gains for these pot stocks. Recently the only catalyst for the cannabis sector has been US federal cannabis legalization and reform. Now with the possibility growing that there could be federal cannabis policy changes this year, the cannabis sector could see some upside.
For investors not familiar with the top US cannabis companies in the market we can take a closer look at some of the top pot stocks for your watchlist next week. Before starting a position, investors should always do their research and due diligence on a company. With this in mind, we can look at what could be 5 of the best marijuana stocks to buy in 2021.
Top US Marijuana Stocks To Add To Your Watchlist
- Green Thumb Industries Inc. (OTC:GTBIF)
- Curaleaf Holdings, Inc. (OTC:CURLF)
- Cresco Labs Inc. (OTC:CRLBF)
- Trulieve Cannabis Corp. (OTC:TCNNF)
- Ayr Wellness Inc. (OTC:AYRWF)
Green Thumb Industries Inc.
Green Thumb Industries Inc. is a leading cannabis consumer packaged company that has a large presence in the US. Recently, GTI has opened its 58th dispensary location giving it a footprint in 11 states. In addition, the company acquired a Massachusetts cannabis operator Liberty Compassion Inc. Currently, Green Thumb has licenses for 103 retail locations across the country. In its latest financials, GTI announced the first quarter of 2021 total revenue of $194.4 million. In comparison, this is an increase of 89.5% from Q1 of 2020. Also, in Q1 GTI is reporting gross profits of $110.9 million or 57% of revenue. As it stands, the company produced its third consecutive quarter of positive GAAP net income of $10.4 million or $0.05 per basic diluted share.
In May Green Thumb opened a Cookies on the Las Vegas Strip through an exclusive partnership with the privately-owned Cookies Brand. Specifically, Cookies is a Bay Area brand founded by the entrepreneur Berner with his partner Jai a master cannabis cultivator and breeder. At this time, Cookies is one of the most well-known cannabis brands among younger marijuana consumers. GTBIF closed on June 25th at $32.25 up12.80% in the past five trading days.
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Curaleaf Holdings, Inc.
One of the leading cannabis companies that are expanding in key markets in the US is Curaleaf Holdings, Inc. The company provides packaged cannabis products and has opened its 107th retail location recently in New Jersey. Recently, Curaleaf reported its first-quarter 2021 revenue of $260 million up 170% from the year prior. Also, the company announced revenue guidance for Q2 2021 of $305-$315 million.
Curaleaf announced a strategic partnership between Curaleaf’s Select Brand and music and culture leader Rolling Stone. In detail, the two companies are launching a new line of co-branded Rolling Stone by Select products. Curaleaf continues to expand its footprint in the US and overseas. Additionally, the company has delivered strong Q1 results without the revenue from New York and New Jersey. Currently, with these new markets in the equation Curaleaf could beat its 2021 full-year guidance for revenue of $1.2 -$1.3 billion. CURLF stock closed at $14.55 on June 25th up 9.32% in the past five days.
Cresco Labs Inc.
As it stands, Cresco Labs Inc is one of the largest multi-state operators in the US and the number one wholesalers of branded cannabis products. At the present time, the company is expanding rapidly and operates 33 dispensaries in 10 states recently opening its fourth dispensary in Pennsylvania. In Q1 of 2021, Cresco delivered record revenue of $178 million. Now the company expects to reach an annualized revenue of more than $1 billion in 2021.
Additionally, in Q1, the company saw gross profits of $87.0 million or 48.8% of revenue. At the present time, Cresco expects gross profit margins of more than 50% for the remaining 3 quarters. This month Cresco announced a portfolio expansion of its Good News brand with new selections in the edibles and vape areas. At the present time, these edibles and vape products will be available in California, Illinois, and Michigan. CRLBF stock closed at $11.29 up 14.45% year to date.
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Trulieve Cannabis
Trulieve Cannabis Corp. is the largest MSO in the US with the strongest presence in Florida. With over 50% of the market share in Florida Trulieve has recently acquired another industry leader to make it the most dominant US cannabis company. Once complete the acquisition of Harvest Health & Recreation Inc. (OTC: HRVSF) will give the company a consensus 2021 revenue of $1.2 billion. As of now, Trulieve is now considered the largest revenue-producing cannabis company in the world. In detail, the two company’s combined will operate in 11 states with a total of 126 dispensaries servicing both the medical and recreational cannabis markets.
With a combined adjusted EBITDA of $266 million and a 2021 consensus adjusted EBITDA of $461 million, the company could be the most profitable cannabis company in the US. In May Trulieve reported a record first-quarter 2021 revenue of $193.8 million generating a net income of $30.1 million. On June 3rd the company opened its first dispensary in the state of Massachusetts giving it a new market to establish itself in. TCNNF stock closed at $38.99 on June 25th up 23.32% year to date.
Ayr Wellness Inc.
At the present time, Ayr is a multistate operator that has seen significant growth in 2021. Recently acquisitions have made Ayr Wellness Inc. the fourth largest cannabis company in Florida. Additionally, the company has been expanding its presence in other key markets across the country. Right now, Ayr has 34 dispensaries in Florida and a total of 50 stores nationwide. In its first-quarter 2021 financials, the company delivered revenue of $58.4 million up 74% from the year prior.
For Q2 of 2021 Ayr provided a revenue guidance estimate of $90 million up 218% year over year. Also, the company reaffirmed its guidance for 2022 with revenue of approximately $725 million. During the first quarter of 2021, the company opened its sixth dispensary in Nevada close to the Las Vegas airport. On June 21st Ayr opened its third dispensary in Pennsylvania by CannTech PA, LLC, a wholly-owned subsidiary of the company. AYWRFS stock closed on June 25th at $27.94 up 5.42% in the past five trading days.
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Final Thoughts On US Cannabis Stocks
As the Us continues to expand into new states and the recreational cannabis market grows larger these cannabis companies could have long-term growth for investors. US cannabis companies have performed much better than their Canadian counterparts and could continue delivering growth in 2021. Because of this, these could be the best US marijuana stocks to buy before July.
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