Cannabis Industry Growth And Marijuana Stock Potential
Currently, U.S marijuana sales are on pace to grow by 40% in 2020 over sales in 2019. In essence, this is due to the increase in demand for cannabis during the pandemic shutdowns. But it has definitely set the stage for rapid growth and more acceptance across the U.S. of a legal cannabis Industry. In general, November has been a good month for marijuana stocks to watch. In fact, many leading U.S. cannabis companies have spent the month reporting better than expected 3rd quarter earnings sending marijuana stocks trading higher. For example, GrowGeneration Corp. (GRWG Stock Report) reported record revenue last week of $55 million this hydroponic and gardening supply chain is growing alongside the cannabis industry at a rapid pace. This brings us to the question of which marijuana stock to buy will perform the best in 2021?
In reality, analysts currently predict the cannabis industry to grow in the U.S. to a $37 billion market by 2024. In fact, this would be more than double the $15-$18 billion the U.S. cannabis industry is estimated to be in 2020. Generally, this could mean a good investment into one of these cannabis stocks to buy could show substantial gains in the future. As the market settles today from the gains it seen since the election rally, leading pot stocks are trading mixed. Since this seems like some needed consolidation for the sector November price points could be a base for growth in 2021.
Canadian Cannabis Stocks And Rapid Growth In 2021
As it stands the U.S. cannabis market seems to be the fastest-growing globally. In turn, this has made other sectors like Canadian cannabis companies focus on expanding into the U.S marijuana market. In particular top-performing Canadian companies like Aphria Inc. (APHA Stock Report) has made a $300 million acquisition of the SweetWater Brewing company. The agreement gives Aphria a direct footprint in the U.S and also establishes a distribution line in the states. Since many Canadian marijuana companies are currently trying to establish a presence in the U.S this could be something to take into account for 2021.
Although U.S. cannabis stocks are reaching some of their highest price points in November of 2020, many Canadian stocks have not seen those gains. For investors, this could be a good place to find marijuana stocks that could hold value for next year. Another place to find value in the cannabis industry is the lesser-known marijuana stocks to watch. For the purpose of focusing on some of these cannabis stocks to buy let’s explore their potential for gains in 2021.
Marijuana Stocks To Trade For 2021: Village Farms International, Inc.
Village Farms International, Inc. (VFF Stock Report) is one of the largest and longest operating greenhouse growers in North America and Canada. The company produces and distributes premium-quality produce to national grocers across North America. In addition to growing produce Village Farms has taken its years of greenhouse experience and focused it on the cannabis industry. It has done this through its wholly-owned subsidiary Pure Sunfarms one of the single largest cannabis growers in the world. Last week Village Farms reported earnings for the 3rd quarter of 2020. The earnings showed strong sales momentum for Pure Sunfarms with 75% sequential growth for the quarter. But Pure Sunfarms was also 5.5% down in sales for Q3 of 2020 when compared to Q3 of 2019.
VFF stock is up over 10% in today’s trading action currently at its highest price point for the year. The stock has been climbing since late October and could see more gains heading into December. VFF stock has analysts giving a target median price of $13.15 which would represent gains over 80% from current prices. VFF stock could hold growth potential going into December 2020.
Marijuana Stocks To Trade For 2021: MariMed Inc.
MariMed Inc. (MRMD Stock Report) is a multi-state cannabis operator that owns and manages seed-to-sale state-licensed cannabis facilities. The company reported 3rd quarter earnings last week that showed better than expected growth. In detail, MariMed reported revenue of $13.5 million in Q3 a 220% increase compared to Q3 of 2019. This is a result of growth in business into the Massachusetts and Illinois cannabis markets. Specifically, gross profits from the company’s core cannabis business increased 221% to $8.7 million compared to $2.7 million in Q3 of 2019. Provided that MariMed can continue expanding into these markets in 2021 they could be a cannabis stock to watch next year.
MRMD stock is currently trading at $0.17 a share with a YTD high of $0.88 back in January of 2020. The stock could show potential for 2021 if MeriMed can increase revenue growth and expand further into Massachusetts, and Illinois marijuana markets. MRMD stock could be a good one to put on your list of pot stocks to watch for December. Although the stock is trading. At these levels, for some time another better-than-expected earnings report could catapult the stock trading higher. For this reason, MRMD is a marijuana stock to watch for 2021.