Top Cannabis Stock In May 2021
As the markets continue to fall top marijuana stocks to buy are seeing a decline in value. With inflation concerns playing a key factor in this week’s trading many sectors including the best cannabis stocks to watch are dropping quickly. For investors looking to start a position in the cannabis sector, this could be a great opportunity to find pot stocks at lower market levels.
In the US the cannabis industry is growing at a rapid pace giving way to new markets that will produce revenue. In general, many leading cannabis companies will experience significant growth by establishing their presence in these emerging markets. Most leading US cannabis companies are delivering strong first quarter 2021 revenue growth. In the US sales are booming in already established markets and growing fast in emerging ones as well.
For investors to take advantage of this growth it’s always important to do their own due diligence and research into any investment before starting a position. In general, this will help you make better investment choices as you familiarize yourself with the top companies. Currently, the cannabis sector is declining in the market for the past 3 months. This has actually created another possible buying opportunity for those wanting to invest in cannabis.
The Growing US Cannabis Market
At the moment many mergers and acquisitions have reshaped leading cannabis companies and their size in the industry. In May with better market momentum top pot stocks could begin to regain some of the value lost after February 10th. In reality, they have every reason to if we are judging from these US cannabis company’s recent earnings results.
But so far earnings have not moved the needle in the cannabis sector. Essentially the only thing that seems to be impacting marijuana stocks is the possibility of federal cannabis reform and legalization. On Capitol Hill, there is a strong possibility that we can see legislation introduced in the coming months.
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This makes this dip in May a good time to start a watchlist for top marijuana stocks to buy. At the present time, there are many cannabis stocks that could hold future gains from current trading levels. Researching these companies can give you an idea of where you will find the most value in the market. With this in mind let’s take a deeper look at 2 top marijuana stocks to watch right now.
Marijuana Stocks To Watch
- TPCO Holding Corp. (OTC: GRAMF)
- Harvest Health & Recreation Inc. (OTC: HRVSF)
TPCO Holding Corp.
TPCO Holding Corp. is one of the largest cannabis operators in California. Formally known as The Parent Company the newly formed public company made its way to the market through a SPAC deal last year. The company is composed of direct-to-consumer platform Caliva and hemp manufacturer Left Coast Ventures. But TPCO also brings to the table global icon and entrepreneur Shawn Jay-Z Carter as Chief Visionary Officer and brand strategist. Additionally, Roc Nation will also be involved in the partnership providing artists, athletes, and influencers to establish brands.
On May 17th TPCO released first quarter 2021 net sales of $39.9 million and adjusted net sales of $45.6 million. Furthermore, the company saw gross profits for Q1 of 2021 of $7.2 million or 18% of net sales. In the first quarter, the company launched Shawn “JAY-Z” Carter’s MONOGRAM a high-end premium cannabis product with reimages of iconic photos of American photographer Slim Aarons. Currently, TPCO has three streamlined facilities producing 8 core brands with a focus on higher-margin product offerings.
GRAMF stock closed on May 19th at $6.16 down 8.66% for the trading day. In January GRAMF stock reached a high of $13.96 and is down 33.40% year to date. According to analysts Market Beat GRAMF has a consensus price target of $12.50 per share. In essence, this would be an increase of 85.5% from current levels. For this reason, GRAMF stock is a top cannabis stock to watch this week in the market.
Harvest Health & Recreation Inc.
Currently taking part in one of the largest US cannabis acquisitions is Harvest Health & Recreation Inc. Earlier in May Trulieve Cannabis Corp. (OTC: TCNNF) announced the two companies will combine to create the most profitable MSO in the US. In fact, their combined consensus 2021 estimated revenue is $1.2 billion. In reality, Trulieve has focused its growth in the Florida market and has only recently expanded into other states.
On the other hand, Harvest has a strong presence on the west coast and northeast regions in the US. The two will combine to operate in 11 states with 22 cultivation and processing facilities and 126 dispensaries. Harvest and Trulieve will have the largest market shares in Florida and Arizona. Harvest will add its premium brands to the Trulieve portfolio and give the company an instant presence as in many new markets. Once complete Harvest shareholders will receive $0.117 of a Trulieve share for each Harvest share.
HRVSF stock closed on May 19th at $4.10 and is up 45.21% in the last 30 days. In February HRVSF saw a high of $4.50 and is currently up 93.52% year to date. According to Tip Ranks HRVSF stock has a 12-month price target of $5.59. This would represent an increase of 36.34% from current levels. But with HRVSF stock turning into Trulive shares it’s a win for investors in the future. With this in mind, HRVSF stock is one of the best cannabis stocks to add to your watchlist in May.
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