Marijuana Stocks And Market Volatility
Some leading marijuana stocks lost substantial amounts in the market on the January 27th trading session. But with so much upward momentum for the month of January, some consolidation could prove healthy for the cannabis sector. For example, top pot stocks like Green Thumb Industries Inc. (OTC: GTBIF), and Cresco Labs Inc. (OTC: CRLBF) saw a loss in value for the day a rather sharp decline for the way these cannabis stocks have behaved in the market.
In essence, this could be due to the recent stock offerings most marijuana companies have participated in adding shares to the market at discounted rates. Generally speaking, this has been well received by investors but during the trading session on January 27th most top pot stocks to watch lost some value. Actually, this could be a good buying opportunity for investors looking for an entry point into some of the best marijuana stocks to invest in.
As things progress throughout 2021 some pot stocks could continue to see massive gains in the market. In fact, most cannabis companies are expecting substantial revenue growth in 2021. In reality, with strong financials, cannabis companies could give shareholders large returns on their investments. While some of these marijuana stocks assess recent gains, it could be time to add cannabis stocks to your watchlist.
U.S Cannabis Market And Growth In 2021
Investing in marijuana stocks means exposure to one of the fastest-growing markets in the U.S. By 2025 analysts forecast the U.S. cannabis industry could grow to about $41.5 billion in sales. In reality, this would be more than double the $16 billion estimated U.S. cannabis sales in 2020. With these figures, the best-positioned cannabis companies could grow exponentially in this time period. But finding the right marijuana stocks to invest in could be difficult with so many choices in the market.
Some of these companies have spent 2020 positioning themselves to benefit from the substantial growth the industry is expecting in the coming years. Currently, they have done this with mergers and acquisitions that have given them a footprint in some of the fastest-growing states in the U.S. For the purpose of researching some of the top cannabis stocks to watch right now, let’s take a look at 2 of the top cannabis stocks to watch going into February 2021. In essence, these marijuana stocks could have growth potential in the near future.
- Top U.S. Marijuana Stocks To Watch Today In The Market
- Are These Pot Stocks Going To See Momentum In 2021?
Marijuana Stocks To Watch:
Ayr Strategies Inc.
Ayr Strategies Inc. has been focusing on high growth markets across the U.S. The company cultivates and manufactures branded cannabis products for distribution through its retail outlets and 3rd party stores. At the end of 2020, Ayr expanded its footprint into the Florida cannabis market and also into New Jersey. In detail, the company made the acquisition of Liberty Health Sciences Inc. (OTC: LHSIF) in a stock for stock transaction totaling $290 million. Additionally, in New Jersey, Ayr acquired GSD NJ LLC for the purchase price of $101 million.
In reality, the assets acquired from Liberty Health include a 387- acre c property with a 300,000 sq. ft. production facility currently in operation. Additionally, Liberty also has 28 open retail dispensaries and another 14 locations that are expected to open this year. This would give Ayr a rather large footprint in Florida one of the key cannabis markets in the U.S. As a result of its acquisition of GSD Ayr will obtain 12 existing licenses in New Jersey 3 open dispensaries and have the largest footprint of any operator in the state. In addition, Ayr will also have a 30,000 sq. ft. of cultivation and production facilities in operation.
AYRWF stock has gained almost 20% since the start of 2021 closing trading on January 26th at $28.75. At the present time, Ayr is positioning itself to capitalize off the growing cannabis market in the U.S. As Ayr continues to make its presence in key cannabis markets across the U.S. look for AYRWF stock to see upward momentum in the market in 2021.
Columbia Care Inc.
Columbia Care Inc. is one of the leading vertically integrated cannabis companies in the U.S. Currently, Columbia Care operates 81 dispensaries and 27 cultivation and manufacturing facilities. In fact, Columbia is one of the original providers of medical cannabis in the U.S. The company has now expanded into the adult-use market as a premier operator. Recently the company announced the launch of adult-use sales in Arizona at its SWC dispensaries in Tempe and Prescott.
Given that Columbia Care had strong earnings in 2020 this trend could continue into 2021. In detail, the company reported a record Q3 2020 revenue of $54 million. This result is an increase of 64% quarter over quarter and 145% from the year prior. Additionally, Columbia had a combined adjusted gross profit of $21 million an increase of 78% quarter over quarter and 300% year over year.
CCHWF stock is up 7.11% since the beginning of 2021 trading. Currently closing trading on January 26th at $6.48 the stock could have future potential in the market. As the U.S. cannabis market continues to grow this year the best-positioned marijuana companies could gain substantial amounts of revenue. With this in mind, CCHWF stock is a top cannabis stock to watch going into February 2021.