Best Marijuana Stocks To Buy In Q4 2021
As top marijuana stocks continue to trade at lower prices in 2021, are looking to invest in a cannabis stock? Since reaching a new high in February the cannabis sector has been declining in the market for nine months. In October top pot stocks are now trading at some of the lowest price points seen this year. This month one area of the cannabis sector dropped significantly as the month progressed. For the most part, Canadian marijuana stocks have seen the most volatility in 2021. After reaching new highs in the first quarter most Canadian cannabis stocks have now fallen to trading levels seen before the rally in November of 2020.
Last year in November the cannabis sector rallied due to investors’ belief the US government would federally legalize marijuana and end prohibition. Now after a year of delays in the Senate the best pot stocks to invest in have been impacted in the market substantially. One factor that would boost Canadian cannabis companies significantly would be a full entry into the US market. Most leading Canadian companies have already established a form of entry into the US. Some have made acquisitions that would play a key role in introducing Canadian cannabis products in the US.
The Canadian Cannabis Market And Its Growth Potential
In Canada, cannabis sales increased by 43.8% from a year ago to $288.21 million. With a growing Canadian market, a presence globally, and entry into the US market Canadian cannabis companies could have significant future growth potential. Before investing in cannabis stocks, it’s always important to research a company thoroughly. Looking into a company’s earnings and press releases can give you a better idea of how the company is performing. In addition, studying how the stock behaves in the market can help you find the best entry for your trading position.
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In 2021 top Canadian cannabis companies have been the most affected by US delays on legalization. But although the federal government has not yet passed legalization on the state levels the US cannabis market is expanding rapidly. It seems it’s just a matter of time before the federal government catches up to state legalization and begins federal cannabis reform. Let’s look at 4 top Canadian cannabis stocks for your watchlist to begin November.
4 Top Canadian Marijuana Stocks For Your List In November
- Canopy Growth Corporation (NASDAQ: CGC)
- Tilray, Inc. (NASDAQ: TLRY)
- Village Farms International, Inc. (NASDAQ: VFF)
- Sundial Growers Inc. (NASDAQ: SNDL)
Canopy Growth Corporation
First on the list is Canopy Growth one of the largest producers and distributors of cannabis and cannabis-derived products. At the present time, the company sales cannabis and hemp-derived products in Canada, the US, and Germany. In 2021 Canopy made a US distribution agreement with Southern Glazers Wine & Spirits for a CBD beverage portfolio. Additionally, in the Canadian market Canopy increased its brand portfolio with the acquisition of one of the countries premium cannabis brands The Supreme Cannabis Company, Inc. Recently, the company introduced Whisl an innovative CBD vape designed to manage your mood throughout the day. In October the company announced it has plans to acquire Wana Brands the #1 edibles brand in North America.
Canopy released its first-quarter fiscal 2022 financial results with 23% growth in Q1 2022 compared to Q1 2021. In detail, the company is reporting net revenue of $136 million in Q1 fiscal 2022 driven by strong double-digit growth across Canada. As a result, Canopy reported total net cannabis revenue of $93 million in Q1 2022 an increase of 17% from the prior year. In addition, other consumer products revenue was $43 million. Currently, net earnings in Q1 2022 are $390 million of which $518 million was driven by other income totaling $581 million during Q1 2022. The company saw an adjusted EBITDA loss in Q1 2022 of $64 million an improvement from Q1 2021.
CGC stock closed at $12.63 on October 29, 2021, down 8.21% in the past month. Currently, the stock has a 52-week price range of $12.60-$56.50 and is down 48.74% year to date. According to analysts at CNN Business CGC stock has a 12-month median price target of $17.67 per share. This would represent an upside of 39.81% from its last trading price.
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Tilray, Inc.
Tilray, Inc. is a leading global cannabis consumer packaged goods company with operations in Canada, the US, Europe, Australia, and Latin America. Most important, the company has undergone a merger in the Canadian market to become one of the largest revenues producing cannabis companies in the world. At the present time, Tilray is positioning itself to enter the US market and is also expanding its international presence. Recently, Tilray completed its first harvest and delivery of medical cannabis grown in Germany. Additionally, the company has established CBD products and infused beverages that could be large revenue producers across the Canadian and American markets. In October Tilray signed a distribution agreement with Great North Distributors to drive more adult cannabis sales across Canada.
In August Tilray acquired a majority position in MedMen convertible notes also a move to enter the US cannabis market. Tilray reported its 2021 fiscal year and Q4 results with net revenue up 27% year over year to $513 million. To highlight, the company produced a net income of $33.6 million and adjusted EBITDA of $12.3 million. As a result, Tilray increased its revenue by 55% in Q4 and holds the #1 share in Canada.
TLRY stock closed on October 29th at $10.30 down 7.29% in the last month. Currently, the stock has a 52-week price range of $5.77-$67.00. According to analysts at Market Beat TLRY stock has a consensus price target of $15.40 per share. In this case, this would be an upside of 49.5% from its last trading price of $10.30.
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Village Farms International, Inc.
Next on the list is Village Farms International, Inc. the company and its subsidiaries, produce, market, and distribute greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. Specifically, the company began focusing on opportunities in the cannabis and CBD segments in Canada and the US. Village Farms wholly-owned subsidiary Pure Sunfarms is one of the largest cannabis operations in North America. In general, this summer Pure Sunfarms received a cannabis cultivation license for a delta 2 greenhouse increasing production capacity by 50%.In September Village Farms unveiled new corporate branding and launches a new website www.villagefarms.com., embodying evolution to an international, plant-based, consumer products company.
Overall, Pure Sunfarms reported second-quarter 2021 results achieving 135% year over year growth in retail branded sales. The company has total net sales for the first six months of $42.2 million an increase of 70% from the same period in 2020. Pure Sunfarms achieved 38% sequential net sales growth and 192% sequential adjusted EBITDA growth. Currently, the company has become the top-selling licensed producer of dried flower in Ontario, Alberta, and British Columbia. In August Village farms acquired 100% of Balanced Health Botanicals a profit leader in the US CBD market.
VFF stock closed at $7.57 on October 29, 2021, down 8.13% in the past month. Currently, the stock has a 52-week price range of $4.74-$20.32 and is down 25.35% year to date. According to analysts at CNN Business VFF stock has a 12-month median price target of $18.07 per share. In this case, this would represent an upside of 138.43% from its last trading price.
Sundial Growers Inc.
Sundial Growers Inc. engages in the production and marketing of cannabis products for the adult-use market in Canada. Primarily, the company manufactures and distributes inhalable products, such as flower, pre-rolls, and vapes. Recently Sundial announced it launched the first Canadian Caviar cone under Top Leaf brand. Specifically, the Forbidden Lemon Caviar Cones will be the first caviar cone product to hit the Canadian market. Overall, this launch reinforces Sundial’s focused innovation pipeline around premium inhalable in the Canadian cannabis market. In October Sundial announced it would acquire Alcanna Canada’s largest private liquor retailer.
Sundial has become a cannabis company that is also focusing on investment operations. The company reported its Q2 2021 financials with net revenue for the cannabis segment of $9.2 million. Additionally, with the company’s investment fee revenue Sundial made $5.7 million and $3.7 million in profit from equity investments. As a result, the company saw net revenue of $18.6 million in Q2 2021. Specifically, the company produced gross cannabis revenue of $12.7 million an increase of 8% sequentially. Also, in Q2 2021 Sundial sustained a net loss of $52.3 million and an adjusted EBITDA loss of $0.2 million.
SNDL stock closed at $0.65 on October 29th down 3.86% in the last month. The stock has a 52-week price range of $0.145-$3.96 and is up 37.28% year to date. According to analysts at Tip Ranks SNDL stock has a 12-month average price target of $0.80 per share. In essence, this would be a 23.08% upside from its last trading price.
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