Buying Cannabis Stocks In May 2021
Are you interested in investing in the top marijuana stocks to buy? In 2021 the cannabis market is seeing massive growth with the expansions in the adult-use marijuana market. With more states legalizing cannabis programs, the next five years could produce massive growth for the industry. One area of the market that’s seen the most momentum this year is marijuana penny stocks.
In general penny stocks is any securities trading under the $5 price range. Although these cannabis stocks are some of the more volatile stocks in the cannabis sector, they have also produced the highest returns in the first quarter. One marijuana penny stock that gained national attention with Reddit and Robinhood investors is Sundial Growers Inc. (NASDAQ: SNDL). After reaching a new 52 week high in February of $3.96 per share the stock is now trading at $0.7809 on May 21st.
But from these recent levels, cannabis penny stocks have more potential for gains for new investors. Finding the right ones to invest in requires due diligence on the part of the investor. In general, researching a company’s financials and studying how the stock performs in the market can help you make sound investment decisions when trading. Especially with volatile penny stocks, it’s important to start your position at a place that can deliver the most returns.
Trading Top Penny Stocks For Gains
Many investors currently prefer to trade marijuana penny stocks for short-term gains. The high volatility makes it possible to day trade and swing trade as these penny stocks fluctuate in price. Although in some ways these methods of trading are riskier than traditional long-term trading, they can also produce larger gains in short periods. Recently more young investors are gravitating to this form of trading and top marijuana penny stocks are a sector of focus.
Researching some of the options in this pot penny stock category could be a way to see some short-term gains in the market. As the weekends with much of the cannabis sector losing ground in the market, this could be a good time to find marijuana penny stocks for next week. With this in mind let’s take a look at 2 marijuana penny stocks for next week’s watchlist.
Marijuana Stocks To Watch
Neptune Wellness Solutions Inc.
In April Neptune Wellness Solutions Inc. completed the transition to a fully integrated consumer packaged goods company. Initially, the company is launching a lineup of CBD beverages in the US which include flavored teas and lemonades. Primarily, over the past year, the company transitioned from a B2B cannabis and hemp extraction company to a consumer products company. With a new focus on consumer products, the company is now providing cannabis, nutraceuticals, beauty and personal care, and organic food & beverage products.
Last month Neptune secured a supply agreement with Alberta Gaming, Liquor, and Cannabis expanding the company’s presence into over 1600 retailers. In particular, Neptune can now sell recreational cannabis products through its Mood Ring and PanHash brands across British Columbia, Alberta, Ontario, and Quebec. The company continues to organically build its brand portfolio with new innovative products developed by its management team.
NEPT stock is trading on May 21st at $1.28 in the last hour of the day. Currently NEPT stock is down 19.87% year to date. In February NEPT stock reached a high of $3.60 per share. According to analysts at CNN Business NEPT stock has a 12-month average price target of $2.73 with a high estimate of $3.20 and a low of $1.97. Essentially, from current levels, this would represent an increase of 112.34%. For this reason, NEPT could be a marijuana penny stock for your watchlist next week.
MariMed Inc. is a cannabis MSO that is developing its own brand of seed to sell state-licensed cannabis facilities and dispensary operations. Currently, MariMed has an experienced management team that produces consistent growth and success for the company. On May 17th the company announced its first-quarter 2021 results which reflect high revenue growth and profitability.
In detail, core cannabis revenue increased by 230% to $24.6 million. Additionally, the company had an EBITDA increase of 764% to $7.6 million in Q1 2021 compared to Q1 of 2020. Currently, MeriMed has achieved its highest quarter of core cannabis revenue and profitability. Specifically, delivering gross profits on core cannabis revenue of $13.2 million. In the quarter the company also opened its fourth recreational Illinois dispensary. In addition, the company continues to expand its award-winning product portfolio. Recently adding new SKUs like Smashin Passion to Betty’s Edibles which is a vegan chews brand among other new products.MRMD stock is trading at $0.95 in the last half hour of trading on May 21st. Currently, the stock is up 88.40% year to date and has climbed 411.85% in the last six months. According to analysts at Stock Invest, they say MRMD stock holds positive trading signals. But the stock is not currently a buy candidate. But with strong revenue growth and significant market gains in the last six months MRMD stock is a top marijuana penny stock to watch.
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