Top Canadian Cannabis Stocks In August 2021
In August one area of top marijuana stocks to watch for upside are Canadian cannabis stocks. After more than five consecutive months of declines, the cannabis sector could be well-positioned for some upward momentum from current trading levels. Most companies in the Canadian cannabis sector that have reported earnings have delivered better than expected financials.
One example of a top Canadian cannabis company that delivered strong earnings for investors is Tilray, Inc. (NASDAQ:TLRY). The company achieved a net income of $33.6 million and a gross profit of $22.5 million in Q4 2021. This shows that the Canadian cannabis market is growing and has leading companies like Tilray are gaining market share. In Canada, cannabis sales continue to grow increasing in May to $313 million up 68% year over year.
After some top Canadian companies reported their earnings this part of the cannabis sector began to show upside. When investors are analyzing earnings there are a few important figures for investors to focus on besides profits. Other areas investors should focus on when looking into financials are sales growth, profit margins, and return on equity. Companies with strength in this area tend to have the characteristics of a winning stock. Although Canadian cannabis companies have struggled to meet expectations when it comes to earnings with better performance, we may see some upward momentum in the market.
Canadian Pot Stocks And US Cannabis Legalization
This week Canadian cannabis stocks to invest in have shown some upside for traders. Before investing in marijuana stocks, it’s important to get familiar with the sector. For the most part, top marijuana stocks are known for extreme market volatility. This makes it important to research a company’s earnings and follow the pot stock’s performance in the market. With the Canadian cannabis sector coming of some of the lowest market prices so far in 2021 they could be well-positioned for a rebound.
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In August there could be some catalyst for top marijuana stocks this month. Strong earnings from these leading companies may have the ability to push pot stocks higher. Another possible catalyst could be federal cannabis legalization. At the present time, many lawmakers are working towards drafting cannabis legislation that will end federal cannabis prohibition. Once passed this could help boost both the US cannabis market and the Canadian cannabis companies as well. With this in mind, let’s look at 2 Canadian marijuana stocks to add to your watchlist in August.
Top Canadian Marijuana Stocks To Watch Right Now
- Cronos Group Inc. (NASDAQ:CRON)
- HEXO Corp. (NYSE:HEXO)
Cronos Group Inc.
Cronos Group Inc. is a global cannabinoid company with international production and distribution across five continents worldwide. At the present time, Cronos has created a portfolio of cannabis brands that’s successful with Canadian cannabis consumers. In the first quarter of 2021, the company saw net revenue of $12.6 million up to $4.2 million from Q1 2020. Cronos attributes the year-over-year growth to increases in the adult-use Canadian cannabis market. The company saw a gross loss of $3.0 million which declined by$3.5 million from Q1 2020. Also, in the first quarter, Cronos reported an adjusted EBITDA loss of $37.1 million in Q1 2021. The company and many analysts are predicting Cronos will have a much better financial result in this next earnings report.
Recently, Cronos announced it purchased options to acquire a 10.5% stake in PharmaCann for $110.4 million. The deal will be executed under various factors including the status of US federal cannabis legalization. Specifically, 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. The company will report its second-quarter 2021 results on Friday, August 6, 2021, before the bell.
CRON Stock Performance
CRON stock is trading at $7.41 on August 5th up 4.22% during power hour. The stock has a 52-week price range of $4.91-$15.83 and has declined by 14.85% in the last month. According to analysts at CNN Business CRON stock has a 12-month median price target of $7.41% per share. This Forecast shows CRON is at its price target and could continue to see higher values than current estimates. For this reason, CRON stock is a top marijuana stock to add to your watchlist in August.
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HEXO Corp.
Another Canadian company with award-winning cannabis products is HEXO Corp. With its presence growing throughout a global industry, it is serving the Canadian recreational market with an extensive brand portfolio. HEXO is producing medical sales in Canada, Israel, and Malta. The company has been expanding into is the US cannabis market as well. In fact, HEXO serves the Colorado market with Truss CBD USA a joint venture with Molson Coors. Recently, the company acquired Zenabis Global Inc. Zenabis is a Canadian licensed cultivator of recreational and medical-grade cannabis. Both acquisitions will help solidify the future expansion for HEXO in Canada, Europe, and the US market.
In its third-quarter fiscal 2021 results, the company reported that total net sales increased 2% year over year. Total net sales declined by $10.2 million from Q2 FY21. This was due to the company’s production issues relating to certain cannabis products. The company also did not produce any international medical sales in that quarter due to revised testing and additional certifications by the Israeli government. HEXO also purchased its first US production facility through a wholly-owned US subsidiary. The 50,000 square foot facility is in Fort Collins, Colorado, and will provide high-quality Powered by HEXO products across the US.
HEXO Stock Performance
HEXO stock is trading at $3.855 on August 5th up 2.53% for the day. Currently, the stock has a 52-week price range of $2.32-$11.04 and has declined by 32.37% in the last month. According to analysts at Tip Ranks HEXO stock has a 12-month average price target of $6.48 per share. This forecast would represent an increase of 68.09% from its last trading price of $3.86. Because the Canadian cannabis sector seems to be gaining momentum HEXO stock could be a top cannabis stock for your list in August.
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