Top Marijuana Stocks In Q2 2021
Last week some of the top marijuana stocks to buy saw declines in the market. After starting June off with some upward momentum some of the best cannabis stocks to invest in have given back most of the gains established in the first couple of weeks of the month. One event that affected the overall markets this week was a Federal Reserve meeting to address inflation and interest rate concerns.
Although the Fed kicked the interest rate hike into 2022 investors have still taken profits and minimized market exposure last week. Another factor affecting the overall stock market recently is low volume. Earlier in the year the spike in volume propelled cannabis stocks too much higher levels and will be needed to achieve those same results.
Since the pandemic began the cannabis industry has managed to grow rapidly and continues to expand across the US on a state level. Last week Connecticut became the third state to legalize adult-use cannabis in 2021. In conjunction on the federal level, lawmakers continue to push for cannabis reform and we could see some positive results in the next few months.
What’s Moving The Best Cannabis Stocks Right Now
In general, the only momentum the cannabis sector has seen this year coincides with federal cannabis reform and legalization. Essentially this could be a catalyst for top marijuana stocks and give the cannabis sector renewed upward momentum this summer. Currently in the US mergers and acquisitions have continued to make the expansion of cannabis companies much faster in the past two years.
Additionally, most US companies are reporting significant revenue growth in their latest earnings reports. As many top marijuana stocks continue trading lower in the market and performing well for 2021, this could be time to add some of the top marijuana stocks to buy to your watchlist. At the present time, these cannabis stocks could see some upside in June.
Marijuana Stocks To Watch
Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM)
Ayr Wellness Inc. (OTC:AYRWF)
Hydrofarm Holdings Group, Inc.
At the present time, Hydrofarm Holdings Group, Inc. and its subsidiaries are a leading distributor and manufacturer in the US of hydroponics equipment and supplies for controlled environment agriculture. Offering an extensive variety of needed equipment that facilitates the cannabis growing process the company became publicly traded in 2020. For some history, Hydrofarms has been in business for over 40 years helping growers in the US and Canada.
Recently, Hydrofarms delivered its first quarter of 2021 financials with net sales increasing 66.5% to 111.4 million. In addition, the company saw gross profit increase by 100.8% to $23.2 million or 20.8% of net sales. One thing to take note of the company revised its full-year 2021 outlook to net sales growth of 30-40% and adjusted EBITDA of $36-$42 million.
On June 1st the company completed the acquisition of House & Garden and Mad Farmers brands. This transaction follows the recent acquisition of HEAVY 16 and is part of the company’s strategic efforts to pick up key CEA products. On June 17th the company announced its third acquisition this year of Aurora Innovations and its organic nutrients and grow media operations. The acquisition will add manufacturing presence to Hydrofarms on the West Coast in Oregon, on the East Coast in New York State, and in Canada.
HYFM Stock Performance
HYFM closed on June 18th at $56.50 up 7.46% year to date. In February HYFM reached a high of $95.48 and is up 2.19% in the past five trading days. At the present time, the stock looks like it’s been consolidating around these levels and could be building for a bounce higher. According to analysts at CNN Business HYFM stock has a 12-month median price target of $74.50 per share. In essence, this represents an increase of 31.935 from its last trading price. For this reason, HYFM stock could be a top marijuana stock to add to your watchlist for next week.
Ayr Wellness Inc.
Recently Ayr Wellness Inc. became the fourth largest cannabis company in the state of Florida. The company has been expanding rapidly through acquisitions in key markets across the US. At the present time, Ayr has 34 dispensaries in Florida and a total of 50 stores nationwide. Ayr released its first-quarter 2021 financials with revenue of $58.4 million up 74% from the prior year. In addition, the company has a Q1 Adjusted EBITDA of $18.4 million on a US GAAP basis. In the first quarter, the company operated at a US GAAP loss of $8.4 million. This loss includes a one-time expense of $26.5 million.
Ayr provided a second-quarter revenue guidance estimate of $90 million up 218% year over year. Another key development is the company reaffirmed its guidance for 2022 with revenue of at least $725 million. In the first quarter of 2021, the company opened its sixth dispensary in Nevada close to the Las Vegas airport. On June 17th the company announced developments in Massachusetts. In detail, the Massachusetts Cannabis Control Commission granted Ayr’s local partner Sira Naturals a provisional license. Now the company will be able to establish the sale of adult-use cannabis in Boston.
AYRWF Stock Performance
AYRWF stock closed on June 18th at $26.50 up 11.44% year to date. In February the stock reached a high of $37.50 and is down 7.79% in the past five trading days. According to analysts at Tip Ranks AYRWF stock has a 12-month average price target of $42.04 per share. This would represent an increase of 58.64% from its last trading price. With this in mind, AYRWF stock could be one of the best cannabis stocks to add to your watchlist right now.