Best US Marijuana Stocks To Watch Right Now
As we begin November the best marijuana stocks to buy are trading at some of the lowest price points seen in 2021. Since reaching new highs in February top cannabis stocks have continued to decline for the past nine months. This is partly due to Congress delaying marijuana legalization and cannabis reform this year. This month cannabis investors will see another round of earnings from leading cannabis companies.
Although these companies have been delivering strong revenue growth it has not translated into market gains in 2021. In the US the cannabis industry has continued to grow rapidly on the state level. This has given leading companies the opportunity to establish themselves in new markets. According to a new BDSA report, American cannabis sales declined in September year over year.
This could affect some of the earnings US cannabis companies will deliver this month. With top-tier MSOs weak earnings could produce more downside for pot stocks. For new investors, this could be an opportunity to find the best marijuana stocks to invest in at lower price points. Making a watchlist and observing how a stock performs in the market can help you achieve the best entry points for your positions.
Trading Marijuana Stocks In 2021 And Finding The Best Investments
One important factor to consider is the significant market volatility in the cannabis sector. This makes trading cannabis stocks a higher risk-reward investment that you should have a plan for before starting a position. Some investors establish there stop losses and profit-taking levels before making a trade. In general, this will help you limit your downside if the stock does not do you what you thought.
[Read More] Best Marijuana Stocks To Buy In November? 2 To Watch This Month
Before investing in pot stocks, it’s important to do your research on a company. Looking into a company’s financials and press releases can help you find the best performers in the sector. In addition, studying how a stock behaves in the market will help you establish the best positions for gains in the market. Before leading cannabis companies provide financial results let’s look at 2 top US marijuana stocks for your list this week.
Best US Marijuana Stocks In 2021
- Trulieve Cannabis Corp. (OTC: TCNNF)
- Ayr Wellness Inc. (OTC: AYRWF)
Trulieve Cannabis Corp.
Trulieve Cannabis Corp. is a top-performing cannabis company with approximately 46% of the market share in Florida. After closing the acquisition of Harvest Health & Recreation Inc. the company now has a consensus 2021 revenue of over $1.2 billion. In October the company announced the opening of its 107th dispensary in the state of Florida. Additionally, the company announced the launch of a brand portfolio that includes four brand designs tailored to meet the needs of new cannabis consumers and connoisseurs. As for products, Trulieve debuted a new line of concentrates using hydrocarbon extracts. To highlight, Hydrocarbon extracts offer patients high-quality, full-spectrum concentrates as a uniquely powerful, aromatic, and high purity medicine.
Additionally, Trulieve received a production license approval in Georgia giving the company further presence in the Southeast cannabis market. Also important, the company opened its first dispensary in the state of Massachusetts adding another market it can produce growth in. Trulieve reported its second-quarter 2021 financial results with a record-breaking performance. As a result, the company achieved its 14th consecutive quarter of profitability has served over 500,000 cannabis customers. Specifically, the company saw revenues of $215.1 million and generated a net income of $40.9 million. The company will release its third-quarter 2021 financials on November 12th before the market opens.
TCNNF stock closed on November 1st at $25.65 per share down 30.63% from its 200-day moving average. According to analysts at Tip Ranks TCNNF stock has a 12 month average price target of $65.28. In this case, this would be a 154.50% gain from its last trading price of $25.65.
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Ayr Wellness Inc.
Ayr Wellness Inc. has also built a strong presence in the Florida cannabis market. At the present time, the company has 42 operating dispensaries in Florida and a total of 59 stores nationwide. Additionally, the company entered the Illinois market with the acquisition of Herbal Remedies Dispensaries, LLC. Ayr received a provisional license to sell adult-use cannabis at greater Boston dispensaries in Massachusetts. On October 26th the company launched Kynd premium flower in Arizona. In Q3 2021 the company signed an agreement to acquire the owner of Levia cannabis-infused hard seltzers. Additionally, the company closed the acquisition of PA Natural Medicine LLC giving AYR a strong presence in Pennsylvania.
Ayr reported its second-quarter 2021 results with revenue of $91.3 million up 222% year over year. To highlight the company produced an adjusted EBITDA of $27.4 million on a US GAAP basis up 225% year over year. Ayr sustained a US GAAP operating loss of $24.9 million which included one-time expenses, and non-operating adjustments of $52.3 million. The company raised its 2022 revenue target to $800 million with a $300 million AEBITDA. Additionally, Ayr provided a 3Q 2021 guidance of $100 million in revenue. The company is expected to release its third-quarter 2021 results on November 22nd before the market opens.
AYRWF stock closed on November 2nd at $21.79 down 22.18% from its 200-day moving average. Currently, the stock has a 52-week price range of $20.00-$37.50 and is down 8.37% year to date. According to analysts at Market Beat AYRWF stock has a consensus price target of $58.70 per share. In essence, this would represent an upside of 169.4% from its last trading price of $21.79. For this reason, these could be some of the best US cannabis stocks for your list in November.
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