Cannabis Stocks Performance In 2021
With top marijuana stocks ending the first quarter of 2021 showing gains in the market, investors are looking for the best cannabis stocks to invest in. So far in April cannabis stocks are showing their traditional market volatility and also being affected on April 13th by Johnson & Johnson (NYSE: JNJ) vaccine issues with the rest of the market. After February 1oth the cannabis sector has seen a steep decline in market value and most cannabis stocks have remained much lower than the highs reached in February.
But there are many recent developments that could fuel a marijuana stock comeback in April. For one federal reform for cannabis could be a major catalyst for the marijuana industry in 2021. Comments from Chuck Schumer after New York legalize cannabis in a state could mean new legislation will be brought to Capitol Hill. Even though federal reform has not yet been established for cannabis on a state level the market continues to expand rapidly throughout the US.
In fact, now more than 36 states have established medical cannabis sales including legal adult cannabis use in 15 states and Washington DC. With the market continuing to grow there are many areas they could see substantial gains in the near future in the cannabis sector. One of those areas that will grow with the industry is ancillary cannabis companies.
Ancillary Cannabis Companies And Market Growth
These companies supply the cannabis market with the products needed to produce cannabis its packaging and other accessories for the market. So far in 2021, the increasing market size is creating revenue gains and increased demand for cannabis companies. Recently more cannabis companies have been merging and creating a stronger business model for themselves going into the future. One example of these mergers is the recent announcement that Canopy Growth Corporation (NASDAQ: CGC) would acquire The Supreme Cannabis Company, Inc. (OTC: SPRWF) in a transaction valued at $435 million.
In the U.S. similar situations have created a rapid expansion of cannabis companies in the states. Also, many leading vertically integrated cannabis companies are also showing substantial growth potential for 2021. For the purpose of finding options for cannabis stocks to add to your watchlist for April, we can research some companies. As strides are achieved in the cannabis industry these could be top marijuana stocks to add to your watchlist right now.
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Marijuana Stocks To Watch:
- Greenlane Holdings, Inc. (NASDAQ: GNLN)
- MariMed Inc. (OTC: MRMD)
Greenlane Holdings, Inc.
Greenlane Holdings, Inc. is a platform for developing and distributing premium cannabis accessories and other related cannabis products on a global scale. Currently, the company operates as a house of brands and a distribution platform for cannabis products. At this time Greenlane has a customer base of more than 11,000 retail locations across the world. In March Greenlane announced Q4 and full-year 2020 earnings with full-year revenue of $138.3 million compared to $185 million in 2019. In reality, the company lagged revenue estimates and reported a large Q4 loss of $0.56 per share.
Also, in March Greenlane has announced that it has merged with KushCo Holdings, Inc. (OTC: KSHB) in an all-stock deal making a new innovative supplier of cannabis ancillary products and packaging. Specifically, KushCo will become a subsidiary of Greenlane, and the companies together are estimating a pro former revenue of $250 million for full-year 2020 results. With the merger, the company is estimated to have revenue of around $310 million to $330 million.
GNLN stock is up 42.42% year to date with a high of $8.73 in February. At the present time, GNLN stock is trading at $5.67 in the last hour of trading on April 13th. According to analysts at CNN Business GNLN stock has a 12-month median price target of $7.50 per share. In essence, this would be a 32.98% gain from current levels. For this reason, GNLN stock could be a top cannabis stock to invest in for 2021.
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MariMed Inc.
MariMed Inc. is a multi-state cannabis operator developing its own brand of state-licensed cannabis facilities and dispensary operations. At the present time, MariMed has an experienced management team that produces consistent growth and success for the company. In March the company reported its Q4 and full-year 2020 financial results and provided full-year 2021 guidance. In detail, the company was able to achieve record results of full-year 2020 revenue of $50.9 million. Additionally, the full-year EBITDA for 2020 is $16.3 million.
In the fourth quarter core cannabis revenue increased 292% to $20.4 million. Also, gross profit on cannabis revenue was $13.4 million in Q4 of 2020. In 2020 the company substantially made improvements on its liquidity and capital resources. Currently, the company seems to be showing significant improvement in its financial results and could produce future growth.
MRMD stock is up 50% year to date with a high of $1.02 in February. Closing at $0.68 on April 13th the stock was down 3.55% for the day. According to analysts at Stock Invest, MRMD stock could fall by 4.23% during the next 3 months. In essence, this drop could be a buying opportunity for new investors starting a position in the stock. With this in mind, MRMD stock could be a candidate for your watchlist in April.
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