Stock Market Performance And Cannabis Stocks
As the Dow Jones reaches 30,000 for the first time in history many marijuana stocks are currently reaching record highs. In general vaccine, optimism has increased market enthusiasm and created gains in the cannabis stock sector. As top-performing marijuana stocks like Trulieve Cannabis Corp (TCNNF Stock Report) continue to increase in market value cannabis investors are looking for the best pot stocks to buy for 2021. In reality with so many choices currently available it could be tough for investors to pick the best option for their portfolio. Another issue is the fact most pot stocks are at all-time highs and the cannabis sector is infamous for extreme market volatility. And although there is a vaccine, currently coronavirus cases are spiking out of control and another 250,000 Americans are predicted to die from Covid.
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A point often overlooked is how fragile the market and our current economy is right now. As 2020 has been a year plagued with extreme stock market swings and one of the biggest crashes in recent history, investors should use caution when investing. To put it another way, as an investor in the current market make sure you do your research before pulling the trigger on a cannabis play. With attention to a company’s financials, investors can truly gauge how a marijuana company will possibly perform in the future. In essence, this can make you as an investor more confident in the cannabis stock you invest in.
Marijuana Legalization And U.S. Expansion
Despite any of the current issues investors could face, the cannabis sector has been a proven winner for this year. While federal legalization could be possible for 2021 the U.S. cannabis industry is expanding at a rapid pace at the state level. Currently, 36 states have some form of legal marijuana and out of those 15 have opted into recreational adult use. In general, this has expanded the industry to be able to reach 109 million American’s that live in these areas. And in recent surveys, more than 45% of adults in the U.S. have used cannabis at least once. In general, 1 out of 8 adults are consistent marijuana users showing the growing popularity of cannabis.
With this in mind, we can begin to look at possible prospects to invest in. While some of these cannabis stocks are currently at their highest price points, they could have future potential growth. And others have potential because of the growing derivatives market and its increased popularity amongst cannabis consumers. Provided that the stock market continues its upward momentum let’s take a deeper look at 2 marijuana stocks that could see growth in 2021.
Marijuana Stocks To Buy {or Sell}: GrowGeneration Corp.
GrowGeneration Corp. (GRWG Stock Report) is a company that operates hydroponic and organic specialty gardening retail stores in the U.S. In detail, the company offers plant nutrition, farming soils, crops, lighting technologies, and hydroponic equipment. Currently, GrowGen has 36 garden centers across 11 states and plans to expand to 50 locations across 15 states in 2021. Earlier in the month, GrowGen reported record revenue of $55 million with a full year guidance increase of $185-$190 million for 2020. In addition, the company also gave a 2021 full-year guidance update of $280-$300 million. Also, gross profit for the period was $14.6million compare to $6.5 million for the same period last year. Same-store sales were $33.4 million for Q3 2020 versus $19.2 million for the same period in 2019 an increase of 73%.
GRWG stock is the best performing marijuana stock in 2020 up over 700% year to date. Currently trading at $32.91 the stock has been climbing steadily for the month of November. Recently analysts have given GRWG stock a median price target of $29 which represents an 11% decrease from current levels. With this in mind, GRWG stock could be a good one to put on your cannabis stock watchlist and find an opportunity to purchase shares at a lower price point. But many analysts are saying GrowGen could be one of the largest ancillary marijuana stocks to watch in 2021.
Marijuana Stocks To Buy {or Sell}: Greenlane Holdings, Inc.
Greenlane Holdings, Inc. (GNLN Stock Report) is a global house of brands and one of the largest sellers of cannabis accessories, child-resistant packaging, and specialty vaporization products. The company has an expansive customer base of more than 11,000 retail locations. In general, this includes licensed dispensaries, and smoke and vape shops. In fact, Greenlane has a track record of partnering with brands and providing support with many aspects of production. This includes product development, market strategy, sales and market research, and direct to consumer fulfillment. Recently, the company reported record core revenue in Q3 2020. In fact, revenue grew 36% to $32.3 million compared to Q3 2019. Also, sales of Greenlane’s brands grew 65% to $5.6 million versus Q3 2019. In essence, the company’s total revenue grew 10% to $35.8 million in Q3 2020 compared to $32.3 in Q3 2019.
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GNLN stock was up over 3% at the close on November 24th with a price of $2.87 a share. The stock is down over 11% year to date and could have growth potential for 2021. Recently analysts have given GNLN stock a median price target of $4 a share up 73% from current levels. Greenlane is positioned to grow with the cannabis industry and should continue to increase revenue as it expands. Given the marijuana industry could grow in the next five years look for Greenlane to continue to see growth.
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