How Top Cannabis Stocks Are Closing Out May
In the last week of May, top marijuana stocks are showing signs of moving higher in the market. One area that showed more upward momentum in trading is the Canadian cannabis stocks. In 2021 Canadian marijuana stocks have seen the most volatility this year. Currently, the best cannabis stocks to buy have seen most of the gains achieved this year wiped away in the past few months.
In general, this has created an opportunity for new investors to start a position in top marijuana stocks at lower share prices. As it stands there are many analysts that are predicting significant upside for the cannabis sector in the future. In Canada, cannabis sales for March increased 65% year over year to $298 million. Although this is the slowest growth the Canadian market has seen since the introduction of adult-use the market sales are still advancing.
In addition, many Canadian cannabis companies have established a plan of entry into the American cannabis market once cannabis reform is passed. Currently, in the US the prospects for cannabis legislation have become greater this week with the possible reintroduction of the MORE Act a cannabis reform bill. Generally speaking, if this bill catches traction, it could mean some upside for marijuana stocks right now.
Researching The Best Marijuana Stocks To Invest In
For investors, it’s important to always do your due diligence on a company before investing. Understanding how a stock performs in the market and knowing the financial status of the company can help you find better investments. Some Canadian cannabis stocks have seen a larger reduction in market value in recent months. At the present time, these stocks could be at levels that could produce gains for investors in the near future.
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In May the cannabis sector has been showing the potential for a market rebound. With this in mind, we can research some options in the Canadian cannabis sector. In reality, these stocks could see some upside for short-term and long-term investors. With May coming to a close these 2 cannabis stocks could deliver returns for traders. Let’s take a closer look at 2 Canadian marijuana stocks to watch before June 2021.
Marijuana Stocks To Watch
- Village Farms International, Inc. (NASDAQ: VFF)
- Cronos Group Inc. (NASDAQ: CRON)
Village Farms International, Inc.
Village Farms International, Inc. is a North American greenhouse grower focusing on opportunities in the cannabis and CBD segments in Canada and the US. Specifically, Village Farms’ wholly-owned subsidiary Pure Sunfarms is one of the largest cannabis operations in the industry. In May Village Farms reported first-quarter 2021 results that achieved the third consecutive quarter of sequential growth in retail branded sales of 20% or more.
Additionally, the company achieved its tenth consecutive quarter of positive adjusted EBITDA and was the top-selling brand of dried flower products with the Ontario Cannabis Store. After Village Farms reported its first-quarter earnings the stock saw a large decline in value. In detail Village Farms reported first-quarter revenue of $52.4 million although this was a 63% increase year over year the company sustained a net loss in Q1 of $7.4 million. Because of that loss investors have left VFF stock trading much lower in the market.
VFF stock is trading at $9.25 up 6.57% for the day on May 26th around 11 am EST. In February VFF stock saw a high of $20.32 and is down 14.40% year to date at the moment. According to analysts at CNN Business VFF stock has a 12-month median price target of $18.19 per share. In essence, this would be a 96% increase from current levels. For this reason, VFF stock could be one of the best Canadian marijuana stocks to buy heading into June.
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Cronos Group Inc.
Cronos Group Inc. is an innovative global cannabis company with international production and distribution across five continents around the world. At the present time, Cronos has a portfolio of cannabis brands that are gaining popularity among Canadian cannabis consumers. In May Cronos reported first-quarter 2021 net revenue of $12.6 million up $4.2 million from Q1 2020. In addition, the company saw a gross loss of $3.0 million in the first quarter with an adjusted EBITDA loss of $37.1 million in Q1 2021.
Currently, Cronos has strategic plans that can generate growth in 2021. For starters, the company has a strong global supply chain and joint venture with Natuera. In Latin America, Natuera exports THC cannabis derivatives from Colombia to the US for R&D purposes. In the US Cronos has also launched a Lord Jones brand campaign entitled “A Higher-Order”. During the next few weeks, Cronos will also launch new edibles into the market with the adult-use brand Spinach.
CRON stock is trading at $7.73 on May 26th up 7.64% year to date. With a 52-week high in February of $15.83 CRON stock is down 9.23% in the last month. According to analysts at Tip Ranks CRON stock has a 12-month average price target of $8.67 per share. In essence, this would represent an increase of 12.31% from current levels. With this in mind CRON stock could be a top Canadian cannabis stock to add to your watchlist for June.
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