Investing In Cannabis Stocks In 2021
At the present time, top marijuana stocks are trending lower in the market this week. For investors looking to start investing in cannabis stocks, this could be an opportunity to start a position at some of the lowest markets value for pot stocks in 2021. Generally speaking, there are many different ways to invest in the cannabis sector that may bring returns to traders.
Earlier in the year, the top Canadian cannabis stocks saw an impressive rally that ended mid-February. At that time Canadian marijuana stocks have trended downward and are trading close to their lowest price points in 2021. As the market continues to fall due to rising coronavirus cases because of the Delta variant investors are also concerned that the economy has already peaked in its recovery.
To combat recent market declines some investors are looking for stocks at lower price points that could benefit them for the long term. One area that has performed particularly well for shareholders is ancillary marijuana stocks. In 202 this part of the cannabis sector saw significant upside and displayed more stability than vertically integrated pot stocks. Now as market volatility increases these cannabis stocks could be a good place to invest for long-term exposure to the cannabis sector.
Researching Top Marijuana Stocks In 2021
For new investors, it’s always important to research a company and know the pot stocks market patterns to determine the best position. With the cannabis sector trading close to the lower end of their market value this year they could have an upside for shareholders soon. For many investors using different trading styles in combination is a common practice. Some investors have a long-term portfolio and a short-term account as well. Whatever your trading style doing your own research can help you achieve the best results in the market.
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With this in mind, we can start taking a closer look at possible top marijuana stocks to buy. After a significant decline in value in the past few trading days we could see some upside in today’s trading. But investors must use extreme caution now when starting positions. Because market volatility is at a heightened level the cannabis sector is also prone to market fluctuations right now. As the cannabis sector rebounds in the market here are 2 of the best marijuana stocks to buy this week.
Top Marijuana Stocks To Watch
- Innovative Industrial Properties, Inc. (NYSE:IIPR)
- Canopy Growth Corporation (NASDAQ:CGC)
Innovative Industrial Properties, Inc.
In the cannabis industry Innovative Industrial Properties, Inc. is one of the only real estate investment trust with a focus on the US-licensed cannabis market. As of May, the company owns 72 properties across 19 states nationwide. IIP continues to close acquisitions including properties in Pennsylvania and Massachusetts expanding its lease portfolio significantly in 2021. Immediately, after the purchase, IIP will enter a long-term triple net lease with the cannabis company using the property.
In its first-quarter 2021 financials, the company saw total revenue of an estimated $42.9 million an increase of 103% year over year. In June IIP declared its second-quarter 2021 dividend of $1.40 per share. This represents an increase of 6% over the first quarter dividend. Because of this dividend IIPR stock has become a favorite with hedge funds and money managers for long-term investing in cannabis. This dividend equates to an annualized of $5.60 per share and is the 11th dividend increase since its inception in 2014. The company is expected to announce its second-quarter financials on August 4th after the market closes.
IIPR stock closed on July 19th at $202.50 up 10.58% year to date. In February IIPR stock reached a high of $222.08 and has gained 115.54% in its 1-year performance. According to analysts at CNN Business IIPR stock has a 12-month median price target of $222.00 per share. This forecast would represent an increase of 8.65% from its last trading price. For this reason, IIPR stock could be one of the best ways to invest long-term in top marijuana stocks in 2021.
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Canopy Growth Corporation
As it stands, Canopy Growth is one of the largest producers and distributors of cannabis and cannabis-derived products in Canada. The company sells cannabis and hemp-derived products primarily in Canada, the US, and Germany. Canopy has established a partnership with terms for acquisition with Acreage Holdings, Inc. (OTC:ACRHF). In addition, the company has a US distribution agreement with Southern Glazers Wine & Spirits for a CBD beverage portfolio. In Canada, the company increased its brand portfolio with the acquisition of one of the countries premium cannabis brands The Supreme Cannabis Company, Inc.
Canopy released the fourth-quarter fiscal year 2021 net revenue of $148 million. Additionally, total net cannabis revenue was $101 million in Q4 2021 and $379 million in full-year 2021. Canopy saw a net loss in Q4 2021 of $617 million. As a result, this disappointed investors, and the company seems to have some ground to cover to achieve its goal of profitability by mid-2022. Canopy achieved 37% revenue growth in full-year 2021 and maintains the #1 market share of the total flower category in Canada.
CGC stock closed at $19.41 on July 19th down 21.23% year to date. In February CGC stock hit a high of $56.50 and is down 42.16% in the last six months. According to analysts at Tip Ranks, CGC stock has a 12-month average price target of $27.38 per share. This would represent an increase of 41.06% from its last trading price of $19.41. With this in mind, CGC could be a top cannabis stock to add to your watchlist this week.
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