Cannabis Stocks To Watch And May Market Volatility
Currently, in May the best marijuana stocks to buy have seen a sudden drop in market value. But the growth in the US market is spreading rapidly on the state level. At the present time, top cannabis companies are expanding throughout the US establishing their presence in the marijuana industry. Already in 2020, we have seen record revenue produced by the top marijuana companies in the US.
In general, top cannabis companies have performed exceedingly well since the pandemic occurred. As the prospects for federal cannabis reform continue to improve more investors are looking toward pot stocks for a possible investment. So, is now the right time to find marijuana stocks to buy in May? For more than two months the cannabis sector has seen declines in market value.
In particular, this drop in value has left many of the best cannabis stocks to buy close to their lowest trading levels this year. One area of the market that could have future potential this year is packaged cannabis companies. At the top of the year, these pot stocks saw a significant increase in the market. Although most of those gains have been currently wiped away, they may be due for a rebound in the market.
Growing Companies In The Cannabis Market
In the cannabis industry, there is significant potential as a cannabis packaging company. In general, there are very strict regulations on how cannabis needs to be packaged this in turn has left only a hand full of companies that provide this packaging to the cannabis market. Other companies specialize in the manufacturing and distribution of accessories like vaporizers and other products used with cannabis. With the cannabis market growing rapidly these companies could have future value for investors.
After a steep drop in market value, it could be a good time to add some of these marijuana stocks to your watchlist in May. It’s always important as an investor to do your own due diligence and find the companies you believe will deliver the best returns. In essence, this requires research into a company’s financials and watching the stock’s performance in the current market. With the intention of researching these cannabis companies a step further, we can look into some leading companies. As the cannabis market continues growing rapidly here are 2 top cannabis stocks to watch right now.
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Marijuana Stocks To Watch:
- Greenlane Holdings, Inc. (NASDAQ: GNLN)
- Neptune Wellness Solutions Inc. (NASDAQ: NEPT)
Greenlane Holdings, Inc.
To close out April Greenlane Holdings, Inc. announced their future leadership team for the proposed merger with KushCo Holdings Inc. (OTC: KSHB). In detail, Nick Kovacevich will lead the company as CEO with Greenlane’s Bill Mote serving as CFO. The combined businesses could become a leading ancillary cannabis company in the industry. Greenlane is a platform that develops and distributes cannabis accessories and other cannabis products globally. Currently, the company has a large customer base of more than 11,000 retail locations worldwide. In Greenlane’s latest financials the company delivered total full-year 2020 revenue of $138.3 million compared to $185.0 million for full-year 2019. The company’s full-year 2020 core revenue (non-nicotine) grew 12.7% to $125.2 million versus $111.1 million the full year in 2019.
In general, the company attributes the decrease in sales in 2020 to a decision to move away from higher volume, low margin merchandise to higher-margin revenue opportunities in the market. Greenlane’s merger with KushCo could have a big impact on the company’s presence in the cannabis market. In April KushCo’s Q2 fiscal 2021 revenue increased 23% quarter over quarter to $32.9 million. With KushCo becoming a wholly-owned subsidiary of Greenlane the new company has an estimated 2021 pro forma revenue of approximately $310-$330 million.
GNLN stock is up 7.32% year to date with a high of $8.73 in February. Closing on May 4th at $4.25 the stock has declined 31.45% in the last month. According to analysts at CNN Business GNLN stock has a 12-month median target price of $7.50 per share. This estimate would represent a 76.47% increase from current trading levels. With this in mind, GNLN stock is a top ancillary marijuana stock to add to your watchlist in May.
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Neptune Wellness Solutions Inc.
Neptune Wellness Solutions Inc. announced in April it has completed the transition to a fully integrated consumer packaged goods company. The company is planning to launch a lineup of CBD beverages in the US market which includes flavored teas and lemonades. In detail, over the past year, the company has undergone a transformation from a B2B cannabis and hemp extraction company to a consumer products company. The companies new focus is on providing cannabis, nutraceuticals, beauty and personal care, and organic food & beverage products.
Additionally, in April Neptune secured a supply agreement with Alberta Gaming, Liquor, and Cannabis expanding the company’s footprint into over 1600 retailers. Specifically, the agreement allows Neptune to sell recreational cannabis products through its Mood Ring and PanHash brands across British Columbia, Alberta, Ontario, and Quebec. In general, these Canadian Provinces account for over 80% of cannabis retail sales in 2020.
NEPT stock closed on May 4th at $1.34 and is down 14.10% year to date. In the past six months, the stock has seen a 23.43% decrease in market value. According to analysts at Market Beat NEPT stock has a consensus price target of $6.00 per share. With this forecast NEPT stock would see an upside of 347.8% from current levels. For this reason, NEPT stock is a top Canadian cannabis stock to watch this month.
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