The Best Marijuana Stocks To Watch Before August
As the market continues its recovery top marijuana stocks are also showing upward momentum. After declining heavily to start the week the best cannabis stocks to invest in are moving higher mid-week. To begin the week, we saw a selloff in the market caused by investors fearful of the coronavirus Delta variant spreading in parts of the world including the US. Another reason for top marijuana stocks to trade lower is cannabis investor’s discontent with how long it’s taking to get federal cannabis legalization and reform passed in Congress.
After months of discussion Senate, Majority Leader Chuck Schumer unveiled a draft of the Cannabis Administration and Opportunity Act. The bill has yet to be introduced formally and currently does not have enough support to get a passing vote in Congress. For new investors, these lower marijuana stock prices could present a lower entry-level into the sector. As it stands the cannabis market is predicted to more than double in revenue in the next five years.
According to Statista US sales of legal recreational marijuana are estimated to be $42 billion by 2026. In 2020 cannabis sales in the US reached 18.932 billion and continues to trend upward every year. To take advantage of the growing cannabis industry there are many ways traders can invest. One area of the market that has delivered massive gains for investors is ancillary companies. Ancillary cannabis companies are those companies that support the cannabis industry without touching the actual plant.
Finding The Most Value In Pot Stocks Right Now
Another area of the market that had strong returns earlier in the year is marijuana penny stocks. For those not familiar with penny stocks these are any stocks trading under the $5 mark. These marijuana penny stocks are considered higher-risk investments and most traders prefer using short-term methods when trading them. In the first quarter of 2021 cannabis penny stocks rallied until almost mid-February but have since seen the steepest market declines in the cannabis sector.
For new investors, these two areas of the cannabis sector could present future gains for cannabis investors. Doing your own due diligence before investing will help you make the best investment decisions as you trade. With this in mind, we can take a closer look at some top pot stocks to add to your watchlist this week.
Marijuana Stocks For Your Watchlist Right Now
Hydrofarm Holdings Group, Inc.
At the present time, Hydrofarm Holdings Group, Inc. is a leading distributor and manufacturer of hydroponics equipment and supplies for controlled environment agriculture. Primarily, the company offers an extensive variety of equipment that facilitates the cannabis growing process. The company’s offering including high-intensity grow lights, climate control solutions, and growing media, as well as a broad portfolio of innovative and proprietary branded products. Hydrofarms has been in business for over 40 years helping growers in the US and Canada achieve premium-quality farming products.
In the first quarter of 2021, the company reported net sales up 66.5% to 111.4 million. With this, the company saw gross profit increase by 100.8% to $23.2 million or 20.8% of net sales. In addition, Hydrofarm revised its full-year 2021 outlook to net sales growth of 30-40% and adjusted EBITDA of $36-$42 million. In July the company announced it completed the acquisition of Aurora Innovations and its organic nutrients and grow media operations.
HYFM stock is trading at $50.10 On July 21st down 8.63% year to date. In February HYFM stock reached a high of $95.48 and has declined 12.83% in the past five days. According to analysts at CNN Business HYFM stock has a 12-month average price target of $72.00 per share. This forecast would represent an increase of 43.71% from its current trading price. For this reason, HYFM could be a top ancillary marijuana stock for your watchlist this summer.
Primarily, Cansortium Inc. is a cannabis company focusing on providing the highest quality marijuana in the state of Florida. Headquartered in Miami the company is establishing operations in Texas, Michigan, and Pennsylvania. Recently, in its first-quarter 2021 financials, Cansortium reported revenue of $15.1 million up 49% from the prior year.
At the present time, Cansortium has 26 operational dispensaries in Florida giving it a significant footprint in the state. On July 19th the company opened Its latest dispensary in Deerfield Beach, Florida. Presently, the company expects to have a total of 27 operational dispensaries by the end of 2021. Specifically, its brand the Fluent has a wide variety of premium dried flowers, edibles, and full-spectrum concentrates cartridges, and creams. Cansortium reaffirmed its annual 2021 guidance of revenue between $90-$100 million and adjusted EBITDA of $30-$35 million.
CNTMF stock is trading at $0.85 up 2.60% year to date. In April CNTMF stock set a high of $1.35 and has lost 23.38% in the past six months. According to analysts at Tip Ranks CNTMF stock has a 12-month average price target of $1.30 per share. In essence, this forecast is an increase of 64.56% from its last trading price of $0.85. With this in mind, CNTMF stock could be a top marijuana penny stock to watch going into August.