The Cannabis Sector And April Volatility
One question many investors are asking themselves in April is how will marijuana stocks perform this month? After a significant drop in March, most leading cannabis stocks began regaining value at the top of April. But on April 7th the cannabis sector began seeing a decline in market value. Although in the short term this recent downturn in the market has the cannabis sector trading at lower levels leading pot stocks could see gains in the near future.
Currently, market sentiment is beginning to improve with the vaccine rollout beginning to help the U.S. economy strengthen. At the present time, the S&P 500 and the Dow are setting new records in April which could be a decent setup for the cannabis sector.n As the cannabis industry continues to grow there are many segments that will flourish in the growing markets. One of those areas is the medicinal cannabis market and CBD segments. According to New Frontier Data U.S., annual legal sales of medical cannabis are projected to grow to an estimated $16.3 billion by 2025. For prospective in 2019 legal medical cannabis sales were $5.9 billion.
At the moment there are a few companies that are gaining market share in this area. One example of a leading medical cannabis company is GW Pharmaceuticals plc (NASDAQ: GWPH). The company has seen tremendous success with its top drug Epidiolex a cannabinol FDA-approved drug that is used to treat seizures from rare forms of epilepsy.
Growing Markets In The Cannabis Industry
Another area that is growing rapidly is cannabis oil and CBD extraction marijuana stocks. As markets develop abroad more cannabis companies have begun exporting products to different parts of the world. In the US 35 states now have legal medical cannabis markets and this continues to grow rapidly. As more talks continue to take place over federal cannabis reform things look more promising in 2021. With this in mind, it could be a good time to start looking for top marijuana stocks to buy in April.
In today’s market, there are many different marijuana stocks that give investors exposure to a particular area of the industry. In addition, these marijuana stocks also have much different price points in the market. For the purpose of researching some options in the medicinal cannabis market, we can a deeper look into some cannabis companies. These are 2 top marijuana stocks to invest in that are leaders in the medicinal cannabis market.
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Marijuana Stocks To Watch:
- AbbVie Inc. (NYSE: ABBV)
- MediPharm Labs Corp. (OTC: MEDIF)
AbbVie Inc.
AbbVie Inc. is not solely a marijuana stock this pharmaceutical giant has a market cap of $185.67 billion. But AbbVie has a popular drug on the market containing THC called Marinol. Additionally, AbbVie Inc holds claim to some of the best-selling chronic disease medicines in the pharmaceutical market. As an incentive to shareholders the company provides an annual dividend payment of $5.20 per share with a dividend yield of 4.93% ABBV Stock has its next scheduled payment for April 14th. In the fourth quarter, AbbVie saw earnings rise 32.1% to $2.92 per share. In addition, sales increased 59.2% to $13.86 billion. This beat expectation in both measures for the fourth quarter. Also, total sales for 2020 are up 37.6% to $45.78 billion.
At the present time, AbbVie is one of the most traded pharmaceutical companies on the market. As far as volume is concerned the company ranks second to Pfizer Inc. (NYSE: PFE) and is the fourth largest company as far as total market value. In general, AbbVie is a good way to gain exposure to medical cannabis and also the broader pharmaceutical sector.
ABBV stock is down 1.82% year to date with a high of $113.41 in January 2021. Closing on April 7th at $105.21 the stock could be at a good level to watch for an entry point. According to analysts at CNN Business ABBV stock has a 12-month median price target of $124 per share. This would be a 17.87% increase from current levels.
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MediPharm Labs Corp.
MediPharm Labs Corp. is a leading producer of pharmaceutical quality cannabis oil, concentrates, and derivative products. Currently, the company has a wholesale distribution platform of cannabinoid-based products that have international sales. In March MediPharms announced its Q4 and 2020 full-year financial results. Specifically, the company is reporting Q4 revenue of $6.1 million an increase of 22% compared to $4.9 million in Q3 2020. Additionally, MediPharms has established 30 plus agreements with customers in eight countries for future exports.
Primarily, the company has been working to build a large European pharmaceutical platform and portfolio. As a result, MediPharms expects heightened customer demand for medicinal cannabis exports in 2021. Earlier in April, the company achieved an export milestone and shipping cannabis oil from Australia to Germany. Fundamentally building their global position as a leader in medical cannabis production.
MEDIF stock is down 8.29% year to date with a high of $0.785 in February. The stock closed at $0.375 on April 7th down 1.91% for the day. According to analysts at Tip Ranks MEDIF stock has a 12-month average price target of $0.60 per share. This would be a 59.07% increase from current levels. With this in mind, MEDIF stock is a top marijuana penny stock to watch in April 2021.
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