Top Cannabis Stocks To Watch In This Market Downturn
As the market pulls back significantly so are the best marijuana stocks to buy in July. After some upward momentum in June, the top cannabis stocks to invest in are trading at some of their lowest stock prices in 2021. With this drop in the cannabis sector comes the opportunity for investors to add to their positions or start new investments at these lower market values. In reality, these lower values could produce significant upside for top pot stocks once the market begins to recover.
In 2021 many analysts are predicting the cannabis market could rebound this year once certain catalysts come into play. One of those catalysts could be federal marijuana legalization and reform. Last week Senate Majority Leader Chuck Schumer unveiled a draft of the Cannabis Administration and Opportunity Act. This bill has been long anticipated by lawmakers and has been revealed to gain support from stakeholders in Congress.
Unfortunately, moments later there was a statement from the White House on Biden’s administration not necessarily backing this bill. Instead, Biden would prefer a bill with slower legalization than the current one presented by Schumer. Biden promised on the campaign trail he would decriminalize cannabis but does not support full legalization at this time.
Current Marijuana Legalization In The US
Although this process is starting to look like it could take some negotiating to get the bill pushed through it is a step in the right direction as far as federal cannabis reform. As the cannabis sector drops lower this could be a good time to add top marijuana stocks to buy to your watchlist right now. One area of the market that could produce substantial upward momentum after this decline is Canadian marijuana stocks. In 2021 the Canadian cannabis sector saw the biggest rally in the first quarter climbing to new highs until almost mid-February.
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Currently, investors are concerned with the global spread of the Delta coronavirus variant and whether peak earnings and strong economic growth are behind us. With this in mind, we can begin to look at some top marijuana stocks to add to your list this week. With earnings season for the cannabis sector kicking off we could see some momentum in the near future. For this reason, let’s take a look at the top Canadian cannabis stocks to watch in July.
Top Canadian Marijuana Stocks To Watch Right Now
- Village Farms International, Inc. (NASDAQ:VFF)
- Neptune Wellness Solutions Inc. (NASDAQ:NEPT)
Village Farms International, Inc.
Village Farms International, Inc. is an established greenhouse grower of agriculture who does business across North America. Now the company has shifted some of its focus on opportunities in the cannabis and CBD segments in Canada and the US. Village Farm’s wholly-owned subsidiary Pure Sunfarms is considered one of the largest cannabis operations in North America at this time. Recently VFF stock has gained popularity among Reddit investors after the announcement of the cannabis legalization bill.
Village Farms reported first-quarter revenue of $52.4 million this was a 63% increase from the prior year. As a result, the company topped analysts’ estimates with revenue growth, but still reported a larger than expected loss for the quarter. Specifically, the company sustained a net loss in the first quarter of $7.4 million. For the past few months, this loss has affected how VFF stock trades in the market and the stock has shed 25.38% in the past six months.
VFF stock is trading at $9.11 on July 19th down 6.09% year to date. In February VFF stock reached a high of $20.32 and has gained 79.47% in its 1-year performance. According to analysts at CNN Business VFF stock has a 12-month median price target $18.90 per share. Essentially this forecast would represent an increase of 99.66% from its last trading price of $9.11. With this in mind, VFF stock could be a top marijuana stock to buy in 2021.
Neptune Wellness Solutions Inc.
Recently, Neptune Wellness Solutions Inc. completed a transition to a fully integrated consumer packaged goods company. The company is launching a lineup of CBD beverages in the US including CBD-infused flavored teas and lemonades. As it stands, the company is transitioning from a B2B cannabis and hemp extraction company to a consumer products company. Now the company has a new focus on consumer products. With the changes, the company is providing cannabis, nutraceuticals, beauty and personal care, and organic food & beverage products.
Recently, Neptune secured a supply agreement with Alberta Gaming, Liquor, and Cannabis expanding the company’s presence into over 1600 retailers in Canada. The company can now sell recreational cannabis products through its Mood Ring and PanHash brands across British Columbia, Alberta, Ontario, and Quebec. On July 15th Neptune’s reported its fourth quarter and fiscal 2021 results with revenue of $6.8 million compared to $9.5 million in Q4 fiscal 2020.
NEPT stock is trading at $0.76 on July 19th down 46.29% year to date. In February NEPT stock reached a high of $3.60 but has now dropped 58.52% in the past six months. According to analysts at Market Beat NEPT stock has a consensus price target of $3.55 per share. This would represent an increase of 367.1% from its last trading price of $0.76. For this reason, NEPT could be one of the best marijuana penny stocks to add to your watchlist this month.
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