Best Cannabis Stocks To Watch In Q1 2023
Do you want to invest in the top marijuana stocks for 2023? When it seems like market gains are always followed by losses that are significantly bigger, long-term investing becomes difficult. One approach to benefit from the current market volatility is through short-term trading. Cannabis penny stocks have the highest risk-to-reward ratios of any cannabis stock.
Trading cannabis penny stocks is one-way cannabis investors are gaining from the present downturn in the industry. Penny stocks are any stocks that are traded for less than $5. These cannabis companies, notorious for their strong market volatility, might produce large returns for short-term investors.
One industry sector that will expand significantly is the global cannabis market. In 2023, the newly legalized cannabis market will continue be expanding. Statistical records are now being broken, and this trend is expected to continue until most nations have approved legalization legislation and established their regulated sectors.
Canadian cannabis stocks have seen gains to begin 2023 in another industry. Ultimately, this might offer marijuana investors an opportunity to buy top companies for less money. Examining three of the best marijuana stocks that saw growth in 2023 would be helpful.
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Top Cannabis Penny Stocks To Watch In February 2023
- IM Cannabis Corp. (NASDAQ: IMCC)
- Village Farms International, Inc. (NASDAQ: VFF)
- SNDL Inc. (NASDAQ: SNDL)
IM Cannabis Corp.
IMC is a global leader in the medical and adult-use recreational cannabis industries and operates in Israel, Germany, and Canada. The Israeli medical cannabis industry has reportedly reached a significant milestone thanks to the IMC brand, claims the business. IMC’s selection of medical marijuana products is growing. The company is represented throughout Europe by Adjupharm, a subsidiary with a German headquarters and an EU-GMP-certified medicinal cannabis distributor. The corporation has made significant announcements regarding the debut of a state-of-the-art logistics facility in Germany. Adjupharm will be able to optimize its supply chain, moving ahead with the help of this facility by repackaging cannabis in a substantial volume.
IMC reported third-quarter sales of $14.2 million in November, up 78% from the $8.0 million reported in the prior quarter and representing 12% organic growth. Additionally, between the third quarters of 2021 and 2022 ($2.8 million vs. $2.0 million), the gross profit rose by 39%. In comparison to Q3 2021, the gross margin for Q3 2022 was 20% greater. The write-off of out-of-date local non-premium inventory is the leading cause of the decline. The business recorded a net loss from continuing operations of $4.5 million in Q3 2022 as opposed to a net profit of $0.8 million in Q3 2021.
IMCC Stock Performance
IMCC stock closed at $1.25 on February 7th, down 8.09% in the past month of trading. The stock has a 52-week price range of $0.821-$26.70 and is up 28.23% year to date. According to analysts at CNN Business, IMCC stock has a median price target of $7 per share. In this case, this would represent an upside of 460.30% from its last trading price of $1.25.
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Village Farms International, Inc.
Village Farms International, Inc. and its subsidiaries cultivate, sell, and distribute greenhouse-grown tomatoes, bell peppers, and cucumbers throughout North America. The business also conducts CBD and cannabis-related business in the US and Canada. One of the biggest cannabis businesses in North America is Pure Sunfarms, a fully-owned subsidiary of Village Farms. A delta two greenhouse with a cannabis production license has been granted to Pure Sunfarms, doubling its capacity for output. At www.villagefarms.com, Village Farms introduced a brand-new website and logo last year.
Village Farms released its financial statistics for the third quarter of 2022 in November. Sales decreased by (2)%, from $72.4 million to $71.1 million. As opposed to a net income of $0.8 million, or $0.01 per share, the firm recorded a consolidated net loss of $8.7 million, or $0.10 per share. Compared to a favorable adjusted EBITDA of $6.9 million in the third quarter of 2021, Village Farms’ overall adjusted EBITDA was negative ($2.2 million). 50% of Village Farms’ total revenue, or $35.5 million, came from the cannabis sector, an increase of 14% year over year. In 2023, Village Farms International will start shipping marijuana to Israel.
VFF Stock Performance
VFF stock closed at $1.18 on February 7th, down 17.48% in the last month of trading. Currently the stock has a 52-week price range of $0.91-$6.55 and is down 11.94% year to date. According to analysts at CNN Business, VFF stock has a 12-month median price target of $3.00 per share. In this case this would represent an upside of 152.10%.
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Sundial Growers Inc.
SNDL Inc. produces, sells, and distributes cannabis-related goods in Canada. The organization’s two primary divisions are cannabis-related activities and retail operations. It engages in the production, distribution, and sale of cannabis for adult markets and the private sale of cannabis for recreational reasons through corporate-owned and franchised retail cannabis enterprises. The business also produces and sells inhalable products like flower, pre-rolls, and vapes. It sells its products under the brand names Top Leaf, Sundial Cannabis, Palmetto, and Grasslands.
With $14.4 million in the third quarter of 2021 and $223.7 million in the second quarter of 2022, the company’s net revenue increased by 3% sequentially and by 1,501% annually to a record $230.5 million in the third quarter of 2022. As a result of non-cash impairment losses of $86.5 million and modifications to estimates of the fair value of derivative warrants of $8.5 million, SNDL reported a net loss of $98.8 million for the third quarter of 2022. In comparison to the second and third quarters of 2022 and 2021, respectively, adjusted EBITDA for the third quarter of 2022 increased by 169% and 74% to $18.3 million.
SNDL Stock Performance
SNDL stock closed at $2.26 on February 7th, up 6.10% in the past month of trading. The stock has a 52-week price range of $1.96-$8.91 and is up 8.13% year to date. According to analysts at CNN Business, SNDL stock has a 12-month consensus price target of $3.44 per share. In this case this would represent an increase of 51.67% from its last trading price of $2.26.
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Best Penny Pot Stocks For February 2023
A number of anticipated developments in the upcoming months may increase the value of these marijuana stocks in 2023. Examining their financials and press releases may make it easier to identify the best cannabis businesses on the market. In an effort to benefit from the recent market volatility, many seasoned traders are aggressively placing short-term wagers on the leading cannabis companies. Before starting a position, choose the optimum parameters using technical indicators and chart patterns. By actively searching for promising opportunities, you can improve your capacity for lucrative deals. Given the volatility of the major cannabis companies this month, these might be some of the top penny stocks to follow in the industry.
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