Prospects For Cannabis Industry Growth
Today on 420 cannabis consumers all over the U.S. are celebrating a huge win for the American marijuana market. To be specific lawmakers voted 321-101 to approve the cannabis SAFE Banking Act in the House. With better chances of passing in the Senate, the banking bill will give cannabis company’s access to the U.S. banking system. At the present time, 36 states have legalized medical marijuana and 17 states and Washington DC have recreational adult use. The growing cannabis market represents a rapidly expanding industry that could have future gains for investors.
Currently, analysts at BDSA are predicting U.S. cannabis sales in 2020 reached $17.5 billion. By their analysis, U.S. cannabis sales are estimated to reach $41.3 billion by 2026. When this occurs the cannabis market will be competing with the American craft beer market. In reality, this type of growth is an investment opportunity into one of the fastest emerging markets for the next five years. Finding the best cannabis stocks to buy in April requires some due diligence from investors.
Researching a cannabis company’s financials and watching how the stock performs in the market are good ways to improve your chances of seeing gains. One thing about the cannabis sector to keep in mind is that marijuana stocks are some of the more volatile securities in the stock market. This makes top pot stocks a high-risk high-reward area of the market.
Investing In Cannabis Stocks In 2021
There are many ways to invest in the cannabis industry in 2021. While some leading cannabis companies have seen substantial gains this year a recent drop in the cannabis sector has left top cannabis stocks trading at lower levels in the market. For new traders, this could be an opportunity to establish positions in the best marijuana stocks to invest in for 2021. While some of the top cannabis companies in the U.S. continue to report increases in revenue growth their stocks are declining in April.
Finding the cannabis stocks with potential gains requires thorough research from investors. For the purpose of taking a closer look at cannabis companies that could be picked for your watchlist this week can look into some prospects. Although these marijuana stocks have recently seen a sharp decline in market value they could be positioned for a rebound. With this in mind let’s take a look at 2 cannabis stocks to watch right now.
- The SAFE Act Passes The House Once More
- Top U.S. Marijuana Stocks To Buy In 2021? 2 Analysts Predict Will Have Gains This Year
Marijuana Stocks To Watch:
TerrAscend Corp. is a U.S. cannabis company with operations nationwide with plans to continue expanding in 2021. At the present time, the company is operating in Pennsylvania, New Jersey, California and is a licensed cannabis producer in Canada. Primarily, TerrAscend operates the Apothecarium dispensary an award-winning brand of cannabis retailer stores in the U.S. In March TerraScend’s 2020 financial results saw an increase of 134% from 2019, for full-year 2020 net sales of $198 million. Additionally, Q4 net sales increase 152% year over year and 28% quarter over quarter to $65 million.
In April TerrAscend doubled its dispensary presence in Pennsylvania through the strategic acquisition of Keystone Canna Remedies. Specifically, the transaction adds three retail dispensaries to the company’s footprint in the state. Also, in April TerrAscend launched Houseplant Seth Rogen’s new cannabis brand at its Apothecarium dispensaries in California. The companies 2021 outlook shows substantial growth expected in this year. In fact, TerrAscend raised its full-year 2021 guidance with net sales to exceed $290 million.
TRSSF stock is almost flat for 2021 with a high of $16.25 in February. Closing on April 19th at $10.14 is down 10.14% in the last 30 days. According to analysts at Tip Ranks TRRSF stock has a 12-month average price target of $16.39 per share. This would be a 61.61% gain from current levels. For this reason, TRSSF stock could be a top marijuana stock to buy this week in April.
Acreage Holdings, Inc.
Acreage Holdings, Inc. is a U.S. vertically integrated multi-state operator of cannabis with cultivation and retail locations nationwide. Currently, the companies national store brand The Botanist is known for carrying regional and national cannabis products. Furthermore, Acreage also owns Universal Hemp LLC a hemp subsidiary dedicated to sales of CBD products in the U.S. market. Acreage has an agreement with Canopy Growth Corporation (NASDAQ: CGC) for a possible acquisition once U.S. federal cannabis reform is complete. Currently, the two companies have a partnership in place that announced it would release Canopy’s Infused beverages this summer.
In its latest fourth quarter and full-year 2020 financial results Acreage has Q4 revenue of $31.5 million up 50% year over year. Additionally, full-year 2020 revenue was $114.5 million increasing by 55% from 2019. To close out March Acreage announced the opening of its third dispensary in New Jersey. As things, progress with American cannabis legalization Acreage could become a major gateway for one of the largest Canadian cannabis companies into the U.S. market.
ACRHF stock is up 75.16% year to date with a high of $9.00 in February. Closing on April 19th at $5.50 the stock is down 9.29% in the last 30 days. According to analysts at Market Beat ACRHF stock has a consensus price target of $7.00 per share. In essence, this would be a 28.9% upside from the current market value. With this in mind, ACRHF stock could be a candidate for your April 2021 cannabis stock watchlist.
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