How Cannabis Stocks In 2021 Have Are Performing
Are you looking for ways to invest in the top marijuana stocks? In June the first couple weeks saw the best cannabis stocks begin thttps://marijuanastocks.com/list-marijuana-stocks/o gain traction in the market. But in the third week in June market sentiment has left pot stocks giving back some of this upside. In 2021 the best marijuana stocks to invest in have seen significant market volatility. At the top of the year, the cannabis sector rallied in January and February.
After mid-February, most cannabis stocks have seen market declines for about four months. Now trading closer to their December 2020 levels, it could be time to start looking for value in the cannabis sector. One area that has shown the most upward momentum earlier in the year is Canadian marijuana stocks in 2021. On the other hand, they have also given back the most gains in the market. Now after consolidating for several months the cannabis sector seems primed to see some upside.
For investors, it could be time to start adding some top marijuana stocks to their watchlist. In the Canadian market, M&As have created some of the largest cannabis companies in the world. One example is Tilray, Inc. (NASDAQ:TLRY) after merging with Aphria Inc. it could be the best performing Canadian cannabis company on the market right now. Considered a Meme stock that grabbed the interest of Reddit investors earlier in the year there are factors that could be a catalyst for this area of the market.
American Cannabis Reform And Legalization In 2021
For one in Congress bills that could change cannabis reform and legalization on the federal level are making their way to the floor. Essentially bills like the MORE Act, The Commonsense Cannabis Reform for Veterans, Small Business, and Medical Professionals Act, and the untitled Comprehensive Cannabis Reform bill that is expected to be introduced by Schumer could impact the cannabis industry this year.
For the Canadian cannabis companies, this would increase the possibility of being able to do business in the US cannabis market. As it stands most Canadian cannabis companies have already established some form of entry strategy into the US cannabis market and are waiting for the change in federal policy.
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In general, the Canadian cannabis market is much smaller than the US market in terms of cannabis sales. Although Canadian companies make up some of this with global sales entry into the American market would be a game-changer for these companies. With this in mind, we can take a closer look at some of the best-positioned Canadian cannabis stocks in June.
Marijuana Stocks To Watch
- Canopy Growth Corporation (NASDAQ:CGC)
- Aurora Cannabis Inc. (NASDAQ:ACB)
Canopy Growth Corporation
Canadian cannabis companies have been establishing entry into the US market for quite some time. Currently, Canopy Growth could have several ways to capitalize off the US cannabis industry once federal legalization happens. For one, the company has established a partnership and agreement of a possible acquisition with Acreage Holdings, Inc. (OTC: ACRHF). Recently, Canopy also signed a US distribution agreement with Southern Glazers Wine & Spirits for a CBD beverage portfolio. In Canada Canopy recently strengthened its brand portfolio with the acquisition of one of Canada’s premium cannabis brands The Supreme Cannabis Company, Inc. (OTC: SPRWF). But the company is still currently losing money.
Canopy released its fourth-quarter fiscal year 2021 financials, reporting net revenue of $148 million in Q4 2021. Additionally, the company saw total net cannabis revenue of $101 million in Q4 2021 and $379 million in full-year 2021. Where the problem lies is in the fact Canopy saw a net loss in Q4 2021 of $617 million. In reality, the company sustained the full year 2021 net loss of $1.7 billion. The company is committed to seeing profitability by the end of fiscal 2022.
CGC stock closed at $24.12 on June 16th and is down 2.11% year to date. In February CGC stock reached a high of $56.50 and is down 6.29% in the past five trading days. According to analysts at CNN Business CGC stock has a 12-month median price target of $26.81 per share. Essentially this would represent an increase of 11.25% from its current stock price. But with US cannabis reform a possibility this could be a Canadian marijuana stock to add to your summer watchlist for a bounce in the Canadian sector.
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Aurora Cannabis Inc.
Another Canadian global leader in the cannabis industry is Aurora Cannabis Inc. Currently, the company is established in both the medicinal and recreational consumer markets. But the company continues to see losses in the earnings in its fiscal 2021 third-quarter results. Specifically, total cannabis net revenue was $58.4 million a 17% decline sequentially. Actually, in the last 4 earnings, Aurora has only beaten estimates once.
In May ACB stock began trading on the NASDAQ and this could possibly help this stock catch some momentum. But the company needs to do more to improve its revenue for shareholders. In its 3rd quarter financials, the company’s balance sheet remains strong with $5252 million of cash on hand on May 12, 2021. In June the company expanded its San Rafael 71 portfolio with the launch of 3 new cultivars for the Canadian cannabis market.
ACB stock closed on June 16th at $9.26 up 11.43% year to date. In February ACB stock reached a high of $18.98 and is down 9.48% in the last five trading days. According to analysts at Market Beat, ACB stock has a consensus price target of $7.58 per share. This would represent an upside of 18.2% from current trading levels. For this reason, ACB stock could be a top Canadian marijuana stock to watch to close the week.
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