Will The Cannabis Sector Bounce Back This Month?
Are you looking for the best marijuana stocks to buy in April? In March most top cannabis stocks to invest in lost significant value in the market. This was after months of showing gains in the cannabis sector and climbing substantially since November. Recently market sentiment seems to be improving and markets began April with some upward momentum for most top pot stocks. One catalyst for this change in the cannabis sector was the recent legalization of marijuana in New York. In addition, Chuck Schumer also mentioned he would reintroduce further cannabis legislation on the federal level.
With this in mind, April could be a monumental month for the cannabis industry. Many analysts already predict substantial future growth for the cannabis industry in the next five years. At the present time finding the best marijuana stocks to invest in April can be difficult with so many different choices. As an investor, you should always do your own due diligence and research the company’s financial results and performance in the market before making an investment.
As it stands the cannabis sector has proven to be one of the more volatile parts of the market. Traditionally marijuana stocks are known for extreme price fluctuations especially those that are vertically integrated. But in the future, these can also be some of the leading cannabis companies that will grow substantially during the next five years.
Strong Performance From Cannabis Companies
In the US there are many cannabis companies that are performing well and showed substantial revenue growth in 2020. Some of these companies have focused their growth in one area of the US while others have expanded across a few separate states. Both have seen success but have also seen a recent drop in market value along with the rest of the cannabis sector. For the purpose of researching some of the top marijuana stocks to watch this week in April, we can look into leading cannabis companies. With this in mind let’s take a look at 2 top US marijuana stocks to watch in April 2021.
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Marijuana Stocks To Watch:
Trulieve Cannabis Corp.
Trulieve Cannabis Corp. is a leading vertically integrated cannabis company that has the largest presence in the state of Florida. Currently, the company has opened its 83rd location nationally and 78th dispensary in Florida. In March Trulieve reported fourth quarter full year 2020 earnings that beat its revenue guidance. In detail for full-year 2020, the company brought in revenue of $521.5 million up 106% year over year. Also important, the company saw a net income of $63 million equaling full-year earnings of $0.53 per share.
In addition to 2020 results, Trulieve provided its full-year 2021 guidance which shows substantial growth. Specifically, the company expects 2021 revenues in the range of $815 million to $850 million. Additionally, the company has begun to expand in California, Massachusetts, Connecticut, and Pennsylvania, and West Virginia. In 2020 Trulieve expanded rapidly across Florida it now seems to be doing the same in other places across the US.
TCNNF stock is up 43.0% year to date with a high of $53.73 in March. The stock closed on April 2nd at $45.24 and is one of the few cannabis stocks that has beat it February highs. According to analysts at Tip Ranks TCNNF stock has a 12-month average price target of $65.86. This would be a 45.58% increase from current levels. With this in mind, TCNNF stock is a top marijuana stock to watch next week in April.
TerrAscend Corp. is a leading U.S. cannabis operator with vertically integrated operations across the United States. At the present time, TerrAscend has operations in Pennsylvania, New Jersey, California and also operates as a licensed producer in Canada. The company operates an award-winning chain of Apothecarium dispensaries as well as best-in-class cultivation and manufacturing facilities. Currently, the company continues expanding in the key markets it’s built a footprint in.
In March TerrAscend reported its 2020 financial results and raises full-year 2021 guidance. In detail, the company saw full-year 2020 net sales increase 134% year over year to $198 million. Also, fourth-quarter net sales increase 152% year over year and 28% quarter over quarter to $65 million. The company ended 2020 with $75 million in cash mainly sustained from positive cash from operations. Additionally, the company raises full-year 2021 guidance with net sales to exceed $290 million.
TRSSF stock is down 2.10% year to date and has been one of the hardest-hit cannabis stocks in March. On March 2nd TRSSF stock closed at $9.84 shedding 3.35% for the day. Although TRSSF stock has shown strong revenue growth it has been losing significant value. According to analysts at Stock Invest TRSSF stock is expected to fall by 8.31% during the next 3 months. This analysis is based on the stock’s short-term market trends. For this reason, TRSSF stock is a cannabis stock to watch for April for a lower buying opportunity.