Best Canadian Cannabis Stocks In 2021
Are you looking for ways to invest in the top marijuana stocks in 2021? For the past few trading sessions, the best cannabis stocks have begun to see some upside in the market. This comes as the overall market begins to rebound after a sharp decline earlier in the week. In addition, Congress has just announced it has attached an amendment like the SAFE Banking Act to a defense bill that passed in the House of Representatives. If this bill makes it through the Senate, it would be a monumental first step in federal marijuana legalization and reform.
For the past couple of days, we have seen the cannabis sector begin to rally higher gaining some of the value lost in September. One area of the cannabis sector that has seen some upside is Canadian marijuana stocks. In truth, Canadian cannabis companies have been positioning themselves to enter the US market when possible.
These companies have established partnerships with US companies and made acquisitions that give them access to US market share. Once federal cannabis prohibition ends Canadian companies can begin to expand into this much larger cannabis market. In 2021 Canadian cannabis companies have not performed as well as their US counterparts. This has also added to their declines in market value.
Investing In Pot Stocks And What To Know Right Now
For investors, some Canadian cannabis stocks could be positioned for some upside in Q4 2021. After seven months of declines in the market, marijuana banking reform could be a catalyst for the top pot stocks to buy. Before investing in cannabis stocks, it’s important to do your research into these companies before investing. Looking into a company’s financial results and following how the stock moves in the market can help you achieve the largest gains from your investments.
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In the next five years, global cannabis sales are expected to more than double, and Canadian cannabis companies are already positioned in the global cannabis market. This week has been especially volatile for the top pot stocks this volatility may produce some short-term market gains for cannabis investors. As many leading Canadian marijuana stocks move higher it may be time to start a list of the best cannabis stocks right now. Let’s take a look at 2 top Canadian cannabis stocks for your list this week.
Top Canadian Marijuana Stocks To Watch Right Now
- Cronos Group Inc. (NASDAQ:CRON)
- OrganiGram Holdings Inc. (NASDAQ:OGI)
Cronos Group Inc.
At the present time, Cronos Group Inc. is a global cannabinoid company with international production and distribution across five continents worldwide. Primarily, Cronos has created a portfolio of cannabis brands that’s successful with Canadian cannabis consumers. In addition, Cronos announced it purchased options to acquire a 10.5% stake in PharmaCann for $110.4 million. Notably, the deal will be executed under various factors including the status of US federal cannabis legalization. In specific, the deal would involve PharmaCann’s six production facilities and 23 dispensary locations. In July the company launched a line of new dual flavor cannabis gummies. These new gummies are said to have an unparalleled taste for adult consumers.
In August Cronos missed earnings estimates on their second-quarter 2021 results. To highlight, the company produced net revenue of $15.6 million in Q2 2021 up by $5.7 million year over year. Cronos sustained a gross loss of $15.8 million in Q2 2021 increasing by $12.9 million year over year. The company attributes the loss to an increase in inventory write-downs in the ROW segment which totaled $12 million in Q2 2021. As it stands, the company has an adjusted EBITDA loss of $49.8 million in Q2 an increase of $22.8 million from Q2 2020.
CRON stock closed on September 22nd at $5.90 down 4.38% in the last month of trading. The stock has a 52-week price range of $4.91-$15.83 and is down 14.99% year to date. According to analysts at CNN Business CRON stock has a 12-month median forecast price target of $7.08 per share. In essence, this would represent an upside of 19.97% from its last trading price.
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OrganiGram Holdings Inc.
Second is OrganiGram Holdings Inc. one of the leading licensed producers of cannabis and cannabis-derived products in the Canadian market. In general, the company is known for producing high-quality, indoor-grown cannabis products to both the medicinal and recreational markets. Primarily, Organigram is strategically developing its international business partnerships increasing the company’s presence in the global market. In addition, the company is also growing its wholesale shipping of cannabis and sells products online. Recently, Organigram extended its SHRED product portfolio with high quality, SHRED’ems Gummies. Also, the company launched Edison JOLTS Canada’s first flavored high potency THC ingestible extracts.
OrganiGram has produced 84 new SKUs since July 2020 as a part of revitalizing its products portfolio. Notably, this includes two new high potency strains under the higher-margin Edison brand in Q3. In its latest report, Organigram saw third-quarter fiscal 2021 results with gross revenue up 51% sequentially to $29.1 million. Specifically, the company grew its adult-use recreational net revenue by 40% sequentially to $16.8 million in Q3 2021. Now, the company expects sequentially higher revenue and improved adjusted gross margins in Q4 2021. Additionally, the company expects to launch more than 20 new SKUs before the end of Q4 2021.
OGI stock closed on September 22nd at $2.41 up 2.12% in the past 30 days of trading. The stock has a 52-week price range of $1.01-$6.45 and is up 81.20% year to date. According to analysts at Tip Ranks OGI stock has a 12-month average price target of $3.66 per share. In this case, this would represent an increase of 51.87% from its last trading price of $2.41. As the best Canadian pot stocks continue to climb higher these could be some of the best marijuana stocks for your list this week.
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