Finding The Best Cannabis Stocks May 2021
Are you looking for a way to invest in top marijuana stocks in May? Currently, there are a few events that could affect how cannabis stocks trade in the market this week. In 2021 one of the biggest catalysts for the cannabis industry has been legalization on the state and federal level. This week we may see a new cannabis reform and legalization bill introduced in the house.
The MORE Act could be refiled sometime as soon as this week with some new terms. Although last time this bill was passed in the house it fell short in the Senate it could find more support this time around. With more states legalizing cannabis in 2021, the industry is expanding rapidly in the US. This has resulted in leading US cannabis companies reporting strong earnings as demand continues to increase in established and new markets.
One thing to take note of is that although the top cannabis companies are delivering strong earnings it has not translated into gains in the market. In general, the cannabis sector rallied at the top of the year but has since declined in value for the past few months. This has created an opportunity for investors to get into some of the top marijuana stocks to buy at lower stock prices.
Marijuana Stocks And Market Performance
Before investing in cannabis stocks, theirs a few things to know about the marijuana sector. For one the top marijuana stocks to invest in are known for having extreme market volatility. This has made it much more difficult for long-term investing in the sector.
Currently, more investors prefer using short-term trading methods such as day trading or swing trading. Because of the price fluctuations with top pot stocks, investors are able to see significant gains using these styles of trading. But there is also long-term potential in US cannabis companies that could have a stronghold on the industry for years to come.
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Finding these companies requires some good due diligence on the part of the investor. In general, researching a company’s earnings and watching the stock’s market patterns can help you establish better positions in the market. With this in mind let’s take a look at 2 top US marijuana stocks to watch as this week kicks off.
Marijuana Stocks To Watch
- Green Thumb Industries Inc. (OTC: GTBIF)
- Acreage Holdings, Inc. (OTC: ACRHF)
Green Thumb Industries Inc.
One cannabis company that is leading the cannabis consumer packaged segments in the US is Green Thumb Industries Inc. Currently, this MSO is known as one of the top-performing US cannabis companies and GTI continues to establish its presence in the US. At the present time, GTI has 56 retail locations in the US across 11 states. In May the company announced its first-quarter 2021 results with total revenue generated of $194.4 million an increase of 89.5% from Q1 of 2020. Additionally, GTI is reporting gross profits in the first quarter of 2021 of $110.9 million or 57% of revenue.
Also, in May GTI announced the opening of Cookies on the Las Vegas Strip through an exclusive partnership with the privately-owned Cookies Brand. Currently, Cookies is an extremely popular brand among younger cannabis consumers and could be the start of a larger partnership between the companies. Ultimately, aligning itself with Cookies could increase GTI’s popularity and establish the company with a new generation of cannabis consumers.
GTBIF stock closed on May 21st at $27.75 up 13.27% year to date. In February GTBIF stock saw a high of $39.11 and is up 47.61% in the last six months. According to analysts at Tip Ranks GTBIF stock has a 12-month average price target of $48.06 per share. In essence, this would represent an increase of 73.19% from current levels. With this in mind, GTBIF stock could be one of the best marijuana stocks to buy in 2021.
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Acreage Holdings, Inc.
With New York launching legalized cannabis Acreage Holdings, Inc. is an MSO that could capitalize on the growing market there. In May Acreage delivered its Q1 2021 results with consolidated revenue of $38.4 million an increase of 58% compared to Q1 2020. Primarily, company-owned same-store sales grew 16% for the ninth consecutive quarter of double-digit same-store sales growth. Although Acreage is improving the company had a net loss in the first quarter of $7.8 million. Additionally, the company had an adjusted EBITDA in Q1 of 2021 of $1.6 million versus a loss of $12 .3 million in Q1 of 2020.
Essentially Acreage is focusing on improving profitability, controlling cost, and accelerating organic growth. With a large presence in New York and New Jersey Acreage could see significant growth from those new markets. An important factor about Acreage is its partnership with Canadian cannabis leader Canopy Growth Corp. (NASDAQ: CGC).
In general, Acreage could play a key role in Canopy entering the US market once it’s federally legal. As it stands, New York could become one of the largest US cannabis markets in the next few years. Currently, Acreage operates the maximum number of dispensaries allowed in New Jersey. The company is working on completing its New Jersey cultivation facility.
ACRHF stock closed on May 21st at $4.33 up 39.88% year to date. In February ACRHF stock reached a high of $9.00 and is down 16.75% in the last 30 days. According to analysts at Market Beat ACRHF stock has a consensus price target of $7.00 per share. This would represent an increase of 61.7% from current trading levels. For this reason, ACRHF stock is a top US cannabis stock to watch this week.
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