Top Cannabis Stocks In August 2021
Are you looking for marijuana stocks to invest in for 2021? After months of declines, many top cannabis stocks are trading near their lowest price points this year. After rallying in Q1, the best marijuana stocks to buy have been shedding those gains as the year progressed. This is partly due to Congress prolonging the legalization and reform process.
In the meantime, these same cannabis companies are reporting significant revenue growth and strong balance sheets in their latest financials. The cannabis industry seems to be growing rapidly at the state level. As more Americans begin using cannabis for adult recreational use the cannabis market is expected to grow substantially. This is considered by many analysts to be significant growth in the next five years. With cannabis stocks trading at 2021 lows, it could be time to start a list of top pot stocks to watch next week. Some top marijuana stocks have been hit harder than others this month.
Heading into September many cannabis investors could establish positions at lower market values as the sector pulls back. In the US there are leading cannabis companies that perform at a higher level and continue growing regardless of federal cannabis legislation. Historically September is known to be one of the worst trading months of the year. In Addition, with new Covid-19 concerns rising as Delta variant cases increase investors are nervous about how the market will perform going forward.
The Main Catalysts For Pot Stocks In 2021
At the present time, the only thing that has given top marijuana stocks upward momentum in 2021 is federal cannabis legalization news. Senate Majority Leader Chuck Schumer unveiled a draft of the Cannabis Administration and Opportunity Act to gain support from lawmakers. As time goes by it becomes evident this has proven to be a harder task than previously expected.
If federal cannabis reform does happen in 2021 it could be a catalyst for the cannabis sector. In the past federal announcements on cannabis have somehow always moved the cannabis sector higher. At the present time, for investors finding the best cannabis stocks to buy for 2021 requires some research into the company’s financial results and studying how the stock performs in the market. Let’s look at 3 top marijuana stocks to add to your list next week.
Top Marijuana Stocks To Watch Right Now
Ayr Wellness Inc.
At the present time, Ayr Wellness Inc. has become the fourth largest cannabis company in the Florida cannabis market. The company has built its presence through acquisitions in key markets across the US. Currently, Ayr has 39 operating dispensaries in Florida and a total of 53 stores nationwide. Additionally, In July the company has entered the Illinois market with the acquisition of Herbal Remedies Dispensaries, LLC. In July, Ayr received a provisional license to sell adult-use cannabis at greater Boston dispensaries in Massachusetts. Ayr has also agreed to acquire Tahoe Hydro an award-winning cultivator and high-quality cannabis flower produce in Nevada.
On August 9th Ayr Wellness Partner Land of Lincoln was awarded a retail dispensary license in Illinois through the state’s lottery process. On August 16th Ayr reported second-quarter 2021 results with revenue of $91.3 million up 222% year over year. In addition, Q2 Adjusted EBITDA of $27.4 million on a US GAAP basis up 225% year over year. Ayr operated at a loss of $24.9 million and increased its 2022 revenue target to $800 million. Also, the company provided Q3 guidance with a target of $100 million in revenue an increase of 211% year over year.
Specifically, TerrAscend cultivates and sells medical and adult-use cannabis in Canada and the United States. The company is a leading US cannabis operator with a footprint in Pennsylvania, New Jersey, and California. TerrAscend has licensed cultivation and processing facilities in Maryland and Canada. Additionally, the company produces and distributes hemp and cannabis-derived products and manufactures artisan edibles for cannabis consumers. TerrAscend launched a portfolio of Kind Tree Branded products in Maryland. The Maryland facility was already producing 15 strains of flower under the Kind Tree brand and now will add vapes and half gran pre-rolls.
On August 19, 2021, TerrAscend reported its second-quarter 2021 results with net sales of $58.7 million. These net sales increased 72% year over year and the company saw adjusted gross profit margins of 61%. Additionally, the company delivered Adjusted EBITDA of $24.3 million compared to $8.4 million year over year. The company signed an agreement with COOKIES to be the sole cultivator and manufacturer of the brand in New Jersey. Bringing the COOKIES brand to the three TerrAscend dispensaries in New Jersey.
Verano Holdings Corp.
Verano is a vertically integrated MSO providing regulated cannabis products to US cannabis consumers. Currently, the company produces premium cannabis products sold under its portfolio of consumer brands. At the present time, Verano has its presence in 14 U.S. States, with active operations in 11 at the present time. The company has 84 operational dispensaries, and 10 cultivation and processing facilities. Verano expects to surpass 90 dispensaries in 2021. In detail, the company operates dispensaries under retail brands Zen Leaf™ and MÜV™ catering to both medical and adult-use markets.
Recently, Verano completed the acquisition of TerraVida and The Healing Center. As a result, this acquisition gives Verano six dispensaries in Pennsylvania. In addition, the company will have a permit to build an additional three in the state. Additionally, the company opened a flagship Pittsburgh dispensary with a four-lane drive-through. On August 13th the company opened its 36th MÜV™ dispensary in Florida and plans to open another one later this month. Verano announced second-quarter 2021 financials with record revenue of $199 million an increase of 164% year over year. As a result, gross profit on an unadjusted basis was $100 million or 50% of revenue.
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