Starting A Position In Cannabis Stocks In 2021
Are you looking at top marijuana stocks wondering if now is a good time to start a position? Currently, most leading marijuana stocks have been experiencing downward pressure in the market. One area of the sector that’s been showing market volatility in 2021 is top Canadian cannabis stocks. After seeing substantial gains up until February, the best Canadian marijuana stocks to buy have been dropping in market value.
For investors looking for a position, this could be a good time to start adding marijuana stocks to buy to your watchlist. In reality, at current market levels, many different cannabis stocks could deliver future gains in 2021. Although investing comes with inherent risk many analysts believe top marijuana stocks will see upward momentum in 2021.
As the US continues the process of federal cannabis reform things could change for Canadian cannabis companies. In general entry into the US cannabis industry will give Canadian companies a much larger market base to grow in. One of the first pieces of cannabis reform legislation to be recently introduced the SAFE Banking Act will hit the Senate floor next week in April. If passed this could be a catalyst for the best marijuana stocks to buy in 2021.
Finding Value In The Cannabis Market
At the present time, many investors prefer investing in the cannabis sector for short-term positions because of the volatility. But top cannabis stocks could put up impressive gains for investors in the long term as well. For the purpose of finding some of the top Canadian cannabis stocks to add to your watchlist for next week in April, we can start some research. In general, with so many prospects for Canadian cannabis companies with the growing cannabis market, these companies could continue to see substantial growth. With this in mind let’s take a look at these 3 top Canadian marijuana stocks to buy in April.
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Marijuana Stocks To Watch:
Canopy Growth Corporation
Canopy Growth Corporation is one of the largest Canadian cannabis companies and has a wide variety of high-quality products for all cannabis markets. Being backed by a large investment and established a partnership with Constellation Brands, Inc. (NYSE: STZ) Canopy has become one of the top Canadian marijuana stocks to invest in for 2021. In its most recent financials Canopy announced its third-quarter fiscal 2021 results with a record net revenue of $153 million. Also, Canopy announced it expects to achieve profitability by 2022.
In April Canopy announced it entered into a definitive agreement to acquire Supreme Cannabis Company, Inc. (OTC: SPRWF). Valued at $435 million all-stock deal will give also Supreme Cannabis shareholders Canopy shares once the transaction is finished stock is up 12,82% year to date with a high of $56.50 in February. Closing last week at $27.80 the stock is down 17.58% in the last 30 days. According to analysts at Tip Ranks, CGC stock has a 12-month average price target of $35.73 per share. In essence, this would be a 28.53% gain from current levels. At CGC stock’s current price point investors could possibly find value in the stock in the short term and long term.
Aphria Inc. is a global cannabis consumer packaged goods company and one of the largest Canadian cannabis companies in the industry. Specifically, a merger with Tilray, Inc. (NASDAQ: TLRY) has combined, the two companies to become one of the largest revenue producers of cannabis worldwide. With the deal expected to close this quarter APHA stock just took a big hit in market value. In its latest Q3 fiscal 2021 earnings Aphria missed analyst’s estimates with an adjusted loss per share of C$0.15. This was much larger than the estimated C$0.05 per share expected by analysts.
Another important prospect is the closed acquisition of SweetWater Brewing Company an independent U.S. craft brewer that will play a role in Aphria’s entry into the U.S. cannabis industry. Aphria is preparing to establish its presence in the U.S. and could see growth from its medical cannabis exports to its German partners this year. APHA stock is up 104.34% year to date with a high of $32.29 in February. Closing on April 16th at $14.14 the stock is down 30.07% in the last 30 days. According to analysts at CNN Business APHA stock has a 12-month median price target of $14.53%. This is an increase of 7.24% from current levels. With things progressing on Capitol Hill with cannabis reform APHA stock could see some upward momentum.
Cronos Group Inc.
Cronos Group Inc. is a global cannabis company with international production and distribution doing business across 5 continents. With a portfolio of cannabis brands that have been successful in the Canadian cannabis market in February Cronos released its fourth-quarter and full-year 2020 financials. In detail the company has net revenue in Q4 of $17 million this is an increase of $9.7 million from Q4 of 2019. Cronos credits its increase in revenue to growth in the adult-use cannabis market and medical cannabis exports to Israel and the U.S. For the company’s full-year 2020 net revenue Cronos saw $46.7 million an increase of $23 million from the full year 2019. Although the company saw increases in revenue, Cronos also saw a gross loss of $25.8 million in full-year 2020.
In general, the company says the loss to a decline in cannabis wholesale sales. In March Cronos launched Kristen Bell’s Happy Dance a CBD skincare brand available at Ulta Beauty. Cronos has a strong balance sheet with an estimated $1.3 billion in cash and short-term investments. CRON stock is down 17.96% in the last 30 days with a year-to-date high of $15.83 in February. Closing on April 16th at $8.36 the stock was up 2.70% for the day. According to analysts at Market Beat CRON stock has a consensus price target of $22.00 per share. This would be a 55.6% gain from current levels. With this in mind, CRON stock is a top Canadian pot stock to watch next week in April.
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