Top Cannabis Stocks To Start Q2 2021
During the first week in June top marijuana stock began to show some upward momentum in the market. For many investors, this could be time to watch the cannabis sector for the best marijuana stocks to buy in June. In particular, for the past three months, the cannabis sector has been shedding significant market value after reaching new highs in February. But these lower entry points may give new investors potentially larger gains in the top pot stocks to buy right now.
At the present time, US lawmakers are ramping up some cannabis reform and legalization bills to introduce on Capitol Hill. Specifically, the MORE Act could be one of the bills that ignites momentum in top marijuana stock this month. Since the presidential election, the only factor that has moved the cannabis sector higher is federal cannabis legalization and reform.
Generally speaking not even the strong financials that most top US cannabis companies are reporting is moving marijuana stocks higher. But what these strong earnings show is substantial revenue growth that most companies expect to continue for the rest of 2021. With an amazing first quarter that did not translate into market gains top marijuana stocks could be trading at prices that may produce significant upside as the sector recovers.
Understanding How Marijuana Stocks Perform In 2021
Especially for new investors theirs a few important factors to know about cannabis stocks before investing. For one marijuana stocks are well known for their market volatility. In general, top marijuana stocks to invest in have displayed this volatility throughout the course of the year. Currently, the best cannabis stocks to buy are trading near some of their lowest prices seen in 2021. Actually, this has created an opportunity for more investors to start positions in these cannabis companies before they continue to climb in the market.
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As an investor, it’s always important to do your own due diligence before investing. Primarily researching a company’s financials and watching the stock market performance is the best way to establish the best positions in the market. With this in mind, we can look into some of the best-performing marijuana stocks to buy right now. For cannabis investors, these could be game-changers to add to your watchlist in June.
Marijuana Stocks To Watch
- GrowGeneration Corp. (NASDAQ:GRWG)
- Trulieve Cannabis Corp. (OTC:TCNNF)
- Curaleaf Holdings, Inc. (OTC:CURLF)
GrowGeneration Corp. recently reported a record first quarter for 2021. Currently, the company has 55 organic garden centers across 12 states. As it stands, the company operates hydroponic and organic specialty gardening retail outlets. In Q1 of 2021, the company increased revenue by 173% to $90 million. Generally, comparable same-store sales grew by 51% from the prior year. In addition, GrowGen raised its revenue guidance to $450-$470 million and an adjusted EBITDA guidance of $54-$58 million.
On June 1st the company announced the launch of GrowGeneration.com the company’s newly redesigned e-commerce platform. In detail, the site is a one-stop-e-commerce destination with over 10,000 products ranging from nutrients to lighting technology. This year GrowGen expects to have 60 gardening centers across 15 states. At its current rate, the company expects to have over 100 locations operating in the US by 2026. GrowGen continues to expand its footprint and could be a major part of cannabis cultivation for years to come.
GRWG stock closed at $42.05 on June 4th up 4.55% year to date. In February GRWG stock reached a high of $67.75 and has climbed 518.38% for shareholders in a 1-year period. Down 5.31% in the past five days, the stock could have both short-term and long-term potential for investors. According to analysts at CNN Business GRWG stock has a 12-month median price target of $57.50 per share. Essentially this estimate represents an increase of 36.94% from current levels.
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Trulieve Cannabis Corp.
Trulieve Cannabis Corp. is the largest cannabis company in Florida and now has become the largest multi-state operator in the United States. Upon completion, the acquisition of Harvest Health & Recreation Inc. (OTC: HRVSF) will see the two companies combine to have a consensus 2021 revenue of $1.2 billion. Now with a dominant presence in Arizona Trulieve will continue to gain market share in that state and also expand into Nevada and California.
Currently, the two company’s combined will operate in 11 states with a total of 126 dispensaries servicing both the medical and recreational cannabis markets. In fact, with a 2021 consensus adjusted EBITDA of $461 million, the new Trulieve could be the most profitable cannabis company in the US. In May the company reported a record first-quarter 2021 revenue of $193.8 million generating a net income of $30.1 million.
TCNNF stock closed on June 4th at $38.69 up 22.36% year to date. In the past month, TCNNF stock is down 6.48% and has a 52-week high in March of $53.73. According to analysts at Tip Ranks TCNNF stock has a 12-month average price target of $70.10 per share. This forecast would represent an increase of 81.18% from the last trading price. For this reason, TCNNF stock is a top US marijuana stock to add to your watchlist in June.
Curaleaf Holdings, Inc.
Expanding rapidly in the US as one of the leading cannabis companies is Curaleaf Holdings, Inc. Currently, the company provides packaged cannabis products and has 106 retail locations nationwide. In its latest earnings report in May Curaleaf reported it first quarter 2021 revenue of $260 million up 170% from the prior year. Going forward, Curaleaf announced revenue guidance for Q2 2021 of $305-$315 million.
In May the company announced the acquisition of Los Suenos Farms the largest outdoor grow facility in Colorado. Along with the cultivation and facility space Curaleaf will receive two dispensary locations serving adult-use cannabis. The company is reporting strong Q1 results without the addition of sales from New York and New Jersey. Once factored in Curaleaf could beat its 2021 full-year guidance for revenue of $1.2 -$1.3 billion.
CURLF stock closed on June 4th at $14.90 up 24.46% year to date. In February CURLF stock hit a high of $18.38 and has increased 159.82% for its 1-year performance. According to an analyst at Market Beat CURLF stock has a consensus price target of $22.50 per share. This is a forecasted upside of 51.0% from current trading levels. With this in mind, CURLF stock could be one of the best cannabis stocks to watch next week.