Best Canadian Cannabis Stocks To Close 2021
Are you looking for top marijuana stocks to watch for 2022? In December most of the best cannabis stocks to invest in have declined to the lowest price points seen this year. As we head into 2022 the cannabis sector has sustained declines that could be an opportunity for new cannabis investors in 2022. One area that has been hit hard by the delays with federal cannabis reform is Canadian marijuana stocks.
After reaching new highs in February when investors believed we would see the end of prohibition in 2021 Canadian cannabis stocks have dropped to their lowest trading levels in December. Although Canadian cannabis companies have not performed as well as US companies, they could see significant growth once they enter the US cannabis market. Additionally, in the next few years, the global cannabis industry could almost double in size. In a recent report from Statista by 2025 legal cannabis sales are expected to reach $33.6 billion compared to $16.5 billion in 2021.
In the global market, some Canadian cannabis companies have already established themselves internationally. Also important, most Canadian cannabis companies have also established a plan to enter the US cannabis market once they are legally able to. Although 2021 has been a rough year for the cannabis sector in the market many cannabis companies have continued to see revenue growth and expansion throughout the year.
Finding The Best Pot Stocks To Buy Before 2022
Before investing in cannabis stocks, it’s always important to do your own due diligence on a company. Researching a company’s earnings and press releases can help you find the best companies to invest in. In addition, studying how a stock behaves in the market can help you establish the best entry points for your investments.
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One factor to consider before investing in cannabis stocks is that they are known for having substantial market volatility. This could be seen with the way most top pot stocks are performing this year alone. As we head into a new year of trading let’s take a close look at 2 top Canadian marijuana stocks for your list in 2022.
Best Canadian Cannabis Stocks In 2022
- Tilray, Inc. (NASDAQ: TLRY)
- HEXO Corp. (NASDAQ: HEXO)
Tilray, Inc.
Tilray, Inc. is currently the world’s largest cannabis consumer packaged goods company, having operations in Canada, the United States, Europe, Australia, and Latin America. The company recently merged in the Canadian market to become one of the world’s greatest revenue-generating cannabis enterprises. Tilray is currently preparing to join the US market while also extending its international footprint. Tilray also finished harvesting and delivering medical cannabis cultivated in Germany for the first time. The company has developed CBD products and infused beverages that have the potential to generate significant revenue in both the Canadian and American markets. Tilray and Great North Distributors announced a distribution partnership in October to increase adult cannabis sales across Canada.
The company recently bought a controlling stake in MedMen convertible notes, signaling a foray into the US cannabis industry. Tilray announced its Q2 financial results for the fiscal year 2022, with net revenue growing 43% year over year to $168 million. Due to the Sweetwater acquisition, net beverage alcohol revenue was $15 million and cannabis revenue was $70 million. With top positions in cannabis flower and pre-rolls, the firm maintained its #1 market share in Canada. In the first quarter, the company lost $34.6 million and had a $12.7 million Adjusted EBITDA. Before the market opens on January 10th, the business will reveal its second-quarter fiscal 2022 financial results.
The stock of TLRY ended at $7.98 on December 17th, down 35.33 % in the previous month. The stock’s 52-week price range is at $7.40-$67.00. TLRY stock has a 12-month median price target of $12.00 per share, according to CNN Business analysts. This would be a 50.56 percent increase over the last trade price of $7.98.
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HEXO Corp.
Another Canadian company with award-winning cannabis products on the market is HEXO Corp. Currently, the company has a strong position in a global industry. And also is serving the recreational market in Canada with a diverse brand portfolio. HEXO primarily sells medical products in Canada, Israel, and Malta. In addition, the company has been growing its presence in the US cannabis market. Truss CBD USA, a joint venture between HEXO and Molson Coors, serves the Colorado market. Zenabis Global Inc., a Canadian licensed cultivator of recreational and medical-grade cannabis, was recently bought by the corporation. Both acquisitions will aid HEXO’s future expansion in Canada, Europe, and the United States.
On December 15th HHEXO delivered its first-quarter 2022 results with $50.2 million in total revenue and announced a new strategic plan. 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. Specifically, this facility will provide high-quality Powered by HEXO products across the US.
Words From The CEO
“We are taking immediate steps through our new strategic plan, The Path Forward, to strengthen our capital position, improve operations, accelerate organic growth and complete our transformation to be cash flow positive from operations within the next four quarters. Having visited all our core sites, and in meeting with our employees and customers, I am more confident than ever in HEXO’s future and our ability to accelerate the creation of short and long-term value for shareholders.”
Scott Cooper, President & CEO, HEXO
HEXO closed at $0.84 on December 17th, down 41.60 % in the previous month. The stock is currently trading in a 52-week price range of $0.78-$11.04, representing a year-to-date loss of 77.15 %. HEXO stock has a 12-month average price target of $1.04 per share, according to Tip Ranks analysts. This would represent a gain of 23.68 percent over the previous trade price of $0.89.
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