Investing In Marijuana Stocks In The Summer Of 2021
Are you looking for the best way to invest in marijuana stocks for the summer? In 2021 the cannabis sector has seen its share of market volatility. After reaching new highs in February many leading pot stocks have seen declines in market value for over 3 months. Although May still showed a decline in market value for the cannabis sector, we did see signs of some upward momentum in the market.
In the US many cannabis companies have reported strong revenue growth for the first quarter of 2021. Presently this has created an upside in the best cannabis stocks to watch in June. This year the only factor that has created momentum in the sector is federal cannabis reform and legalization. Since the presidential election, this has been the catalyst for both the US and Canadian cannabis markets. Currently, US cannabis companies have shown the best financial results in recent reports.
With a much larger industry than the Canadian market, the American cannabis industry is growing at an exponential rate. According to a BDSA forecast, US cannabis sales are expected to grow to $41.3 billion by 2026. For comparison, legal US cannabis sales in 2020 were over $17.5 billion. In reality, this kind of growth could produce revenue growth for the top cannabis companies across America.
Finding The Best Cannabis Stocks Right Now
For investors finding the best marijuana stocks to invest in requires some due diligence into the top cannabis companies. Ultimately researching these companies thoroughly and watching how the stock performs in the market can help you make the best investment decisions for your portfolio.
With marijuana stocks, it’s important to establish a good entry point for your position because of the stock price volatility the sector is known for. Currently, more investors are using short-term trading methods such as day trading and swing trading to take advantage of the price fluctuations in the market.
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But there is also long-term potential in the cannabis market. At the present time, most pot stocks are trading at levels that could produce future gains in the market in 2021. With this in mind, we can begin to research some of the top marijuana stocks to buy in 2021. In general, these could be some of the best cannabis stocks to invest in for June.
Marijuana Stocks To Watch
Green Thumb Industries Inc.
Green Thumb Industries Inc. is leading the cannabis consumer packaged segment in the US. At the present time, GTI has 58 retail locations across 11 states and has recently acquired a Massachusetts cannabis operator Liberty Compassion Inc. In May GTI announced its first-quarter 2021 financials with total revenue of $194.4 million. In comparison, this is an increase of 89.5% from Q1 of 2020. GTI is reporting gross profits of $110.9 million in Q1 of 2021 or 57% of revenue. Primarily, this is the third consecutive quarter of positive GAAP net income of $10.4 million or $0.05 per basic diluted share.
Also, in May GTI opened a Cookies on the Las Vegas Strip through an exclusive partnership with the privately-owned Cookies Brand. For some background, Cookies is a Bay Area brand founded by the entrepreneur Berner with his partner Jai a master cannabis cultivator and breeder. Currently, Cookies is one of the more popular cannabis brands among younger marijuana consumers. As. a result, partnering with Cookies could increase Green Thumbs brand and establish itself with a new generation of cannabis consumers.
GTBIF stock closed on June 1st at $29.99 up 22.41% year to date. In February GTBIF stock saw a new high of $39.11 but is down 6.28% in the last month. According to analysts at Tip Ranks GTBIF stock has a 12-month average price target of $47.05 per share. Essentially this would be an increase of 56.89% from current trading levels. For this reason, GTBIF stock could be one of the best marijuana stocks to buy right now in June.
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Cresco Labs Inc.
Another one of the largest multi-state operators is Cresco Labs Inc. As one of the number one wholesalers of branded cannabis products in the US Cresco is expanding rapidly. Specifically, the company has a consumer-packaged approach and operates 32 dispensaries in 10 states with 18 production facilities. Recently, the company has expanded through strategic acquisitions that have increased its footprint in the US.
In May Cresco announced its first-quarter financial results under GAAP with a record revenue of $178 million. Currently, the company expects to reach annualized revenue of more than $1 billion in 2021. For the first quarter, the company saw gross profits of $87.0 million or 48.8% of revenue. In the first quarter. In fact, in 2021 the company expects gross profit margins in excess of 50% for the remaining 3 quarters.
CRLBF stock closed on June 1st at $12.03 up 21.95% year to date. Reaching a new high in February of $17.49 the stock is down 7.46% in the past month. According to analysts at Market Beat CRLBF stock has a consensus price target of $19.74 per share. In essence, this would represent an increase of 64.1% from current levels. With this in mind, CRLBF stock could be a top cannabis stock to invest in for 2021.
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