Investing In The Cannabis Sector In 2021
Are you looking for the best marijuana stocks to buy next week? Since November 5th we have seen the top cannabis stocks to invest in begin to rally around Republican-drafted legislation for federal marijuana legalization and reform. The States Reform act is expected to be introduced sometime this month and the cannabis sector has been trading higher because of it. In addition to this new possible legislation in November, many leading cannabis companies are delivering strong earnings which could also be adding some upward momentum.
Another recent win for the cannabis industry has come by way of the White House. President Biden announced he plans to nominate Robert Cliff as the Food and Drug Administration commissioner. As a doctor, he acknowledged the medical benefits of marijuana and in some cases prescribed cannabinoid medicine to patients. In perspective, this continues to add to the possible growth the US cannabis market will see in the future. At the present time, there are many ways to invest in the growing cannabis industry that could have future upside.
Cannabis Market Volatility And Which Pot Stocks To Watch
Because the cannabis sector is known for having significant volatility many investors trade pot stocks using short-term trading methods like day trading and swing trading. But there are also some plays in the best marijuana stocks to buy that could have long-term potential for investors. As the cannabis market continues to grow there are many ancillary companies that are growing alongside the cannabis industry. Some of these have shown more stability in the market than vertically integrated cannabis stocks in 2021.
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Additionally, in some cases, they also provide a dividend for investors. After months of declines, it seems the cannabis sector is picking up momentum in the last week of trading. For some investors, it could be time to research some top marijuana stocks in November. As you make your list for next week let’s look at 3 top marijuana stocks to watch right now.
Best Cannabis Stocks To Add To Your List In November
- Innovative Industrial Properties, Inc. (NYSE:IIPR)
- The Scotts Miracle-Gro Company (NYSE:SMG)
- Jazz Pharmaceuticals plc (NASDAQ:JAZZ)
Innovative Industrial Properties, Inc.
Innovative Industrial Properties, Inc. is a real estate investment trust with a focus on the US-licensed cannabis industry and is currently the largest cannabis REIT in the market. At the present time, the company has a total of approximately 7.5 million rentable square feet and 2.7 million square feet under development. Specifically, these properties are 100% leased with a weighted average remaining lease term of about 16.7 years. In detail, the company owns 76 properties across 19 states. As of November 3rd, IIP has invested a total of $1.5 billion and committed another $391.7 million to reimburse tenants for property improvements. In October the company expanded its long-term real estate partnership with Goodness Growth Holdings, Inc. (OTC:GDNSF) in New York.
On November 3rd IIP reported its third-quarter 2021 results with general total revenues of about $53.9 million for the quarter. This represents an increase of 57% year over year. In addition, recorded net income to common stockholders can in at about $29.8 million in Q3 or about $1.20 per diluted share. Also important, IIP paid a quarterly dividend of $1.50 per share In October representing an increase of 28% year over year. Currently, the company has approximately $127.3 million in cash and about $554.4 million in short-term investments.
IIPR Stock Performance
IIPR stock closed on November 12th at $279.52 up 67.91% in the past six months. Currently, the stock has a 52-week price range of 145.07-$284.36 and has given shareholders a return of 595.27% in the past 3 years. According to analysts at CNN Business IIPR stock has a 12-month median price target of $290.00 per share. This would be an increase of 3.71% from its last trading price. In 2021 IIPR stock has been one of the best performing cannabis stocks for the long-term shareholder.
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The Scotts Miracle-Gro Company
Next up is Scotts Miracle-Gro, one of the world’s largest marketers of branded consumer lawn and gardening products and has a hand in the cannabis market. For those that don’t know, the company wholly owned subsidiary Hawthorne Gardening is a leading supplier of nutrients, lighting, and hydroponic equipment used in the process of growing cannabis. On November 6th the company announced an increase to its dividend to $0.66. In detail, this gives SMG stock a dividend yield of 1.6%.
On November 3rd Scotts announced record full fiscal year 2021 results that saw Hawthorne sales increase 39% in fiscal 2021. Primarily, Scotts US consumer segment sales increased 11% in fiscal 2021. As a result, the company saw full-year GAAP earnings of $9.03 per share and non-GAAP-adjusted full-year EPS of $9.23. In addition, Scotts gave fiscal 2022 guidance with non-GAAP adjusted EPS of $8.50-$8.90 and announced the intention of share repurchase of $300 million in fiscal 2022.
SMG Stock Performance
SMG stock closed on November 12th at $176.89 up 17.56% in the past month. Currently, the stock has a 52-week price range of $139.20-$254.34 and is down 11.17% year to date. According to analysts at Tip Ranks SMG stock has a 12-month average price target of $208.25 per share. Based on this analysis this would represent an upside of 17.73% from its last trading price. For long-term investing SMG stock could be a good pot stock to watch for your long-term portfolio.
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Jazz Pharmaceuticals plc
In general, Jazz Pharmaceuticals plc is a biopharmaceutical company, that identifies, develops, and commercializes pharmaceutical products for various medical needs. The company operates in the United States, Europe, and globally. Primarily, the company has a portfolio of products with a focus in the areas of neuroscience, including sleep medicine and movement disorders. To highlight, in 2021 Jazz acquired a leading medical cannabis provider GW Pharmaceuticals which produces a leading cannabis-derived drug named EPIDIOLEX. Currently, Epidiolex is used in the U.S and globally for the treatment of seizures associated with a variety of ailments. Right now, Epidiolex is one of the only drugs approved by the FDA in the U.S. and the European Union for medical use. In July Jazz announced the FDA has approved Rylaze a multi-agent chemotherapeutic regimen for lymphoblastic leukemia.
On November 9th Jazz delivered their third-quarter 2021 financials and raised full-year earnings guidance. Some of the key highlights are total revenue of $838.1 million up 39% year over year. Specifically, Epidiolex’s net product sales were $160.4 million in Q3 2021 up 21% year over year. Currently, the company is making progress in the European market with launches in Spain, Italy, and Switzerland in Q3 2021.
JAZZ Stock Performance
JAZZ stock closed on November 12th at $139.53 down 20.68% in the past six months. Currently, the stock has a 52-week price range of $126.01-$189.00 and is down 15.46% year to date. According to analysts at CNN Business JAZZ stock has a consensus price target of $202.00 per share. In essence, this would represent an upside of 44.82% from its last trading price. As medicinal cannabis continues to grow in the pharmaceutical market JAZZ could be a long-term cannabis stock for your watchlist.