2 Marijuana Stocks To Watch As The Sector Slowly Starts To Rise
With marijuana stocks still working to reach even higher market levels, the sector has been a bit volatile this month. Many people felt May might bring with it a boost in momentum. However, the first week of the new month followed in the same downward pattern as the previous month. Currently, some marijuana stocks have slowly started to inch back up in the market. Yet for those cannabis plays that have not fully recovered there is still a chance to find marijuana stocks to buy.
The cannabis industry in its entirety is still growing at a fast pace. Overall the global cannabis industry is turning into one of the fastest-growing industries in the world. Yet investors are aggressively focused on the U.S. side of the industry. This is due to the fact that many U.S. cannabis companies have been able to continuously remain profitable. Now in other markets around the globe, some of those marijuana companies have had trouble with their financials and business operations. For example, Canadian cannabis companies back in 2020 and even somewhat in 2021 were having trouble with operations.
Some advocates feel that once the U.S. passes federal cannabis reform it will help build up some of Canada’s marijuana market. Looking back over the last 2 and a half months you can see that the drop in the sector has left many marijuana stocks at lower levels than ever before. Now the goal is to figure out how to build back these cannabis stocks to better trading levels. Even with big news hitting the sector and some companies releasing good earnings it still didn’t resonate well in regards to trading. With more time left in May, the hope is to see this volatility transcend into an upward push that leads to better trading.
Marijuana Stocks To Watch Right Now
- Cronos Group Inc. (NASDAQ:CRON)
- GrowGeneration Corp. (NASDAQ:GRWG)
Cronos Group Inc.
Cronos Group Inc. is one of the top Canadian marijuana stocks to watch. The company is an innovative global cannabinoid company with international production and distribution across five continents. In one of the company’s recent reports, Cronons have released its Q1 2021 results. During this time the company generated net revenue of $12.6 million in Q1 2021. Which was an increase of $4.2 million from Q1 2020. Much of this increase in revenue came from continued growth in the adult-use Canadian cannabis market and other markets as well. Next, the company had an Adjusted EBITDA loss of $37.1 million in Q1 2021 increased marginally from Q1 2020.
“This quarter for Cronos Group would not have been possible without the tenacious and innovative efforts put forward by every Cronos employee across our organization. In the first quarter of 2021, our results in Canada were impacted by market dynamics due to the COVID-19 pandemic and ensuing stay-at-home orders and various other restrictions. Despite this, we continued to push forward our innovation pipeline and execute on our strategy, which was a true testament to the strength of our team,” said Kurt Schmidt, President, and CEO, Cronos Group.
Final Thoughts On CRON Stock And Market Performance
In recent trading CRON stock like many other cannabis stocks have been hit hard by the drop in the sector. Since the second week of February CRON stock has been dropping in the market. Even in March when CRON stock was dropping small spike did happen but it wasn’t enough to see a substantial rise in trading. Currently CRON stock has slowly started to rise once again. Yet only time will tell if the company can keep this momentum going to reach better market levels this month.
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GrowGeneration Corp. is one of few cannabis companies that is a must to have in the industry. The company works on the ancillary side of the sector. GrowGen owns and operates a chain of hydroponic stores across the United States. Ancillary businesses like these are essential to cultivators of the industry. Without the proper growing equipment, it would tough for businesses and consumers to have weed. In the company’s most current news GrowGen has announced Dennis Sheldon senior vice president of the global supply chain.
“We started GrowGeneration in 2014 because we saw a clear opportunity to create a national supply chain for the legal cannabis industry,” said Darren Lampert, GrowGen’s CEO. “Today, we supply the ‘picks and shovels’ for many of the country’s largest multi-state operators, as well as smaller craft growers. As we continue to build out our network of best-in-class hydroponic and organic garden centers, integrated technology and e-commerce platforms, and private label offerings, Dennis’ experience will be invaluable in scaling our supply chain to support our growing operations.”
Over the last few months, GRWG stock has had a bit of a volatile run. From February to now GRWG stock has been fluctuating in price. Yet ultimately the company fell even more at the end of April. Currently GRWG stock is still down but shareholders are still keeping a positive mindset on the possibility for more momentum before the end of the month
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