Starting An Investment In Cannabis Stocks In July
To start this week top marijuana stocks pulled back slightly after showing some upward momentum to close out June. Currently, the best cannabis stocks to buy have continued to consolidate near current levels for more than four months. In the US cannabis companies delivered strong earnings in the first quarter and have expanded into new markets during the year. Despite producing a strong quarter, the top marijuana stocks to invest in did not see strong financials turn into market gains.
Instead, top pot stocks have continued to trade at these lower market levels as the year developed. Now in July cannabis investors are looking to establish positions before the cannabis sector begins to rebound. One factor that could be a major catalyst for cannabis stocks is federal legalization and reform. In the US the cannabis industry has been growing on the state level while waiting for lawmakers on Capitol Hill to pass much-needed cannabis reform and federal policy.
Researching Top Pot Stocks Before Investing
Currently, there are a few different bills introduced in Congress that would benefit the cannabis industry if implemented. Given this point, there are many different ways to invest in the cannabis market. Many traders are investing in vertically integrated cannabis companies and ancillary marijuana stocks. Ultimately this gives an investor exposure to more than one area of the cannabis market.
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It’s important for investors to research a company and do their due diligence before investing in the cannabis sector. Researching earnings and observing the stock’s trading patterns can help you establish the best entry for your investment. With many US cannabis stocks declining in the market on July 6th this could be an opportunity to start positions in the cannabis sector at lower levels. With this in mind let’s take a closer look at 2 top marijuana stocks for your watchlist in April.
Marijuana Stocks To Watch
- Ayr Wellness Inc. (OTC:AYRWF)
- WM Technology, Inc. (NASDAQ:MAPS)
Ayr Wellness Inc.
In the past year, Ayr Wellness Inc. became the fourth largest cannabis company in the Florida market. The company has expanded its presence through acquisitions in other key markets as well. For now, Ayr has 36 operating dispensaries in Florida and a total of 52 stores nationwide. AYR opened its most recent dispensary in Spring Hill, Florida. Recently, In the company’s first-quarter 2021 financials AYR saw revenue of $58.4 million up 74% from the year prior. Also, the company delivered a Q1 Adjusted EBITDA of $18.4 million on a US GAAP basis.
For the second quarter of 2021 Ayr provided a revenue guidance estimate of $90 million up 218% year over year. In addition, the company reaffirmed its guidance for 2022 with revenue of approximately $725 million. AYR has also opened its sixth dispensary in Nevada close to the Las Vegas airport. In June the company opened its third dispensary in Pennsylvania by CannTech PA, LLC, a wholly-owned subsidiary of the company.
AYRWF stock closed on July 6th at $28.60 up 20.27% year to date. In February AYRWF stock reached a high of $37.50 and has gained 258.99% in its 1-year performance. According to analysts at Tip Ranks AYRWF stock has a 12-month average price target of $42.04 per share. This would represent an increase of 46.99% from this current trading price. For this reason, AYRWF stock could be a top marijuana stock to buy in July.
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WM Technology, Inc.
One interesting way to play the growth in the cannabis market is WM Technology, Inc. better known as Weedmaps. Weedmaps is an online listing marketplace for cannabis consumers and cannabis companies. Before going public the company established one of the largest online markets for cannabis companies and consumers. In 2020 WMH holdings were valued at having an estimated $160 million in revenue. Now with a market cap of $2.149 billion Weedmaps can continue to expand its online hub for cannabis consumers. As the cannabis industry continues to grow rapidly, Weedmaps is also building its SAAS platform. In detail, the platform provides consumers with information regarding cannabis products. This includes online ordering, local retailer and brand listings, product discovery, and consumer education on cannabis and its history, uses, and legal status.
Additionally, WM Technology also provides point of sale, logistics, wholesale, and order solutions. Weedmaps currently has an estimated 10 million monthly active users and approximately 18,000 business listings in the U.S. Primarily, Weedmaps client base includes over 55% of holders of retail licenses in all cannabis markets. With more cannabis sales moving to online pickups and deliveries Weedmaps presents an interesting way to invest in the cannabis industry.
MAPS stock closed on July 6th at $16.63 down 3.71% for the trading day. In February MAPS stock reached a high of $29.50 and is up 30.23% year to date. As the cannabis sector begins to recover MAPS stock could hold potential value for investors. With this in mind, MAPS stock is a top ancillary cannabis stock to add to your list this week.
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MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
