Cannabis Stocks See Downward Pressure
The stock market continues to be mixed and leading marijuana stock continues to see losses in trading. At the present time, many U.S. stocks are heading lower as investors become concerned with the impact of a COVID-19 shutdown in Europe’s largest economy. Currently, in Germany, a month-long extension to strong lockdown measures has been implemented to combat the resurgence of COVID in the country.
Also, investors are waiting for commentary from Federal Reverse Chair Jerome Powell and Treasury Secretary Janet Yellen. Now in March, many marijuana stocks are trading at lower market values than they entered the month with. This could mean an opportunity for investors looking to start a position in the cannabis sector to find lower price points. Most likely the next few years will see massive growth of the cannabis industry. Generally speaking, many cannabis companies are positioning themselves to gain a portion of this growing market share. In the U.S.
Currently, U.S. cannabis sales are predicted to range from $20.3- $24.8 billion in 2021. In essence, this growth could add value to the best-positioned cannabis companies in the future. Many of these companies have begun expanding their businesses and are entering new key growth markets. During recent reporting, most of the top U.S. cannabis companies are showing strong 2020 revenue growth. In reality, this sales trend could persist in 2021 as the market continues to expand across America and other parts of the world.
Growth Of The U.S. Cannabis Industry
As new states continue to move to recreational use cannabis markets and other states begin legal medical cannabis programs, the industry is growing rapidly in the U.S. Now that top marijuana stocks are dropping in market value it could be time to add some to your watchlist. As an investor doing your own due diligence in cannabis companies can help you make better-investing decisions.
Also watching how a stock performs in the market is important when finding an entry point for your investment. Historically marijuana stocks are some of the more volatile stocks in the market. This is something to keep in mind when making an investment long-term in the cannabis sector.
Recently more cannabis investors are keeping a close eye on the market in an attempt to buy the dip in the best marijuana stocks to invest in. In March some U.S. marijuana stocks have seen much deeper losses in their market value. While these cannabis stocks are now under $10 as things progress throughout 2021, they could see upward momentum. With this in mind, let’s take a look at 2 marijuana stocks that could hold value in April.
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Marijuana Stock To Watch:
- Planet 13 Holdings Inc. (OTC: PLNHF)
- Acreage Holdings, Inc. (OTC: ACRHF)
Planet 13 Holdings Inc.
Planet 13 Holdings Inc. is a leading Nevada cannabis company with dispensary operations in Las Vegas. With a globally recognizable brand on the Las Vegas Strip, the company has a world-class dispensary operation. Specifically, the company produces award-winning innovative cannabis products and has recently begun its expansion into other states. In February Planet 13 received building permits and has begun construction on its Orange County Cannabis SuperStore in Santa Ana, California. Currently, Planet 13 expects the new superstore to be completed by the middle of 2021.
Earlier today Planet 13 Holdings Inc. announced the release of its Q4 and year-end 2020 financial results on April 5th aftermarket. In its latest Q3 2020 financials Planet 13 grew revenue to $16.7 million an increase of 36.5%. To complement its Superstore model the company also has a smaller Medezin dispensary which the company reopened in November of 2020. Essentially this could and substantial revenue growth in 2021.
PLNHF stock is up 20.11% year to date with a high of $8.67 in February. According to analysts at Tip Ranks tPLNHF stock has a 12-month average price target of $7.98 per share. In essence, this would be a 23.72% gain from current levels. With this in mind, ACRHF stock is a U.S. cannabis stock to add to your 2021 watchlist.
Acreage Holdings, Inc.
Acreage Holdings, Inc. is a U.S. multi-state operator of cannabis with cultivation and retail locations across the country. At the moment the companies national store brand The Botanist carries a large range of regional and national cannabis products. Additionally, Acreage also owns Universal Hemp LLC a hemp subsidiary dedicated to sales of CBD products in the U.S. Acreage also has an agreement with Canopy Growth Corporation (NASDAQ: CGC) of a possible acquisition and current partnership once U.S. federal policy is changed.
This morning on March 23rd Acreage released its Q4 and full-year 2020 financials. In detail, the company reported Q4 revenue of $31.5 million up 50% from the same period in 2019. Also, Acreage saw full-year 2020 revenue of $114.5 million up 55% compared year over year. Full-year same-store sales grew 27% marking the eight consecutive double-digit same-store sales. The company also saw a net loss attributable in the fourth quarter of $36.9 million and an adjusted net loss of $9.2 million. One improvement is its adjusted EBITDA in Q4 was a loss of $3.5 million compared to a loss of $18.3 million in 2019.
ACRHF stock is up 88.39% year to date with a high of $9.00 in February. Currently closing at $5.72 on March 23rd the stock is down 2.05% for the day. According to analysts at Market Beat ACRHF stock has a consensus price target of $7.00. This would be a 19.9% gain from current levels. For this reason, ACRHF stock is a marijuana stock to add to your watchlist going into April.