Cannabis Stocks And Recent Declines
As top marijuana stocks drop in value because of inflation and gas shortage concerns, which are the best cannabis stocks to buy right now? In May many leading cannabis companies are reporting record earnings bringing to light the continued strength the cannabis market is experiencing. After producing significant revenue growth in 2020 many leading marijuana companies are showing strong first quarter 2021 performances.
In fact, companies like Trulieve Cannabis Corp. (OTC: TCNNF) are reporting a record first-quarter 2021 revenue of $193.8 million and adjusted EBITDA of $90.8 million. Although Trulieve is performing exceptionally well you couldn’t tell by looking at its performance in the market. Unfortunately, this is a trend that can be seen in many other leading pot stocks as well. But it could be a buying opportunity for investors looking to start a position. At current market values top marijuana stocks to invest in could have substantial upward potential.
Currently, many analysts believe the cannabis sector will see some upside this year. Looking back to February highs top pot stocks have given investors an idea of where it could go with better market sentiment. One important development that could be a catalyst for marijuana stocks in the near future is cannabis reform on the federal level. With a change in banking laws for cannabis companies in the Senate, the SAFE Banking Act could usher in new US federal policy toward cannabis.
Waiting For US Federal Cannabis Reform
Another federal cannabis reform bill is also gaining support from the Republican party. Known as the Commonsense Cannabis Reform for Veterans, Small Businesses, and Medical Professionals Act this bill would also push cannabis reform forward in many aspects. In general, this could help cannabis companies achieve the ability to bank regularly like any other business. In addition, publicly-traded US MSOs will be able to trade on the major US exchanges. At the present time, US MSOs seem to be performing better than their Canadian counterparts.
Because of this more investors are looking to find the best US cannabis stock to invest in for 2021. More investors right now prefer to buy pot stocks for short-term positions. This is because leading cannabis stocks are known for having extreme market volatility and have been unpredictable in the long term. But there are opportunities for investors to use either method of trading or a combination of a few different investment strategies. With this in mind let’s take a look at 2 of the best US marijuana stocks to watch before next week.
- Top Marijuana Penny Stocks to Watch In May 2021
- The Best Cannabis Stocks To Buy In 2021? These Have Long Term Potential
Marijuana Stocks To Watch:
Recently TerrAscend Corp. announced it closed the acquisition of Keystone Canna Remedies increasing the company’s footprint with three more retail locations to its Pennsylvania presence. With operations in New Jersey, California, Pennsylvania, and production in Canada the company operates the Apothecarium a dispensary that has won previous awards as well as best in class cultivation. In its latest financials full year 2020 net sales increased 134% to $198 million. In Q4 net sales increased 152% year over year to $65 million. Additionally, TerrAscend raised full-year 2021 guidance with net sales to exceed $290 million.
On May 7th TerrAscend announced it has opened its largest retail location with a 6500 square foot Apothecarium dispensary in New Jersey. The company has also expanded its Northeast footprint to now include Maryland. Next week TerrAscend is expected to release its first-quarter 2021 results on May 19th before the bell. With a good Q1 report the company might see some upward momentum in the market.
TRSSF stock is up 12.44% year to date closing on May 13th at $11.18 per share. In February TRSSF stock set a new high of $16.25 and has increased 529.37% in the 365 days. According to analysts at Tip Ranks TRSSF stock has a 12-month average price target of $16.37 per share. In essence, this represents an increase of 46.44% from current levels. Because of the potential upside analysts are forecasting and the company’s strong financials TRSSF stock is a top pot stock to watch in May.
[Read More] Will Marijuana Stocks Be Impacted By Inflation?
Columbia Care Inc.
As New York legalizes cannabis Columbia Care Inc. could see significant growth in the next five years. A recent acquisition of a 34-acre Long Island cultivation site gives the company one of the largest cannabis operations on the East Coast. At the present time, the company operates in 18 US markets. In detail, Columbia Care operates 115 facilities including 87 dispensaries and 28 cultivation and manufacturing facilities. Initially, the company was one of the first medical cannabis providers in the US.
Columbia Care reported fourth-quarter 2020 revenue of $81.8 million up 51% quarter over quarter. For its full-year 2020 combined revenue, the company made $197.9 million an increase of 151% from 2019. In 2021 Columbia Cares gave combined revenue pro forma guidance of $500 million $530 million. On May 17th Columbia Care is expected to release its first-quarter 2021 results.
CCHWF stock is up 50.63% in the last six months closing on May 13th at $5.85 per share. In February the stock reached a high of $7.89 and has increased 274.22% in the last 365 days. According to analysts at Wallet Investor CCHWF stock has a 1-year forecast of $11.387 per share. For this reason, CCHWF stock is a top US cannabis stock to add to your watchlist next week.