Investing In Top Cannabis Stocks In May
Are you looking for ways to invest in top marijuana stocks? In 2021 the best cannabis stocks to buy have managed to deliver gains for investors. At the beginning of this year, the cannabis sector rallied until it reached a new high on February 10th. Since that time pot stocks have seen a significant drop in market value. But beginning in May there seems to have been a turnaround in momentum. This month many leading cannabis companies are reporting earnings with strong results so far.
To start the week Curaleaf Holdings, Inc. (OTC: CURLF) reported record first-quarter 2021 revenue of $260 million up 170% year over year. Currently, Curaleaf is one of the strongest US MSOs in the country. In reality, the cannabis market represents one of the fastest-growing industries globally. According to the 2021 Marijuana Business Factbook, US cannabis sales are expected to reach $22-$26.4 billion in 2021. And by 2025 US cannabis sales are estimated to reach approximately $45 billion.
Currently, with states like New York and New Jersey legalizing marijuana, there is more momentum for the cannabis market. For investors looking to gain exposure to the cannabis industry, there are many different companies showing potential gains this year. In particular, one area of the market has performed better this year. Many top marijuana penny stocks have seen the most upside in the market in 2021.
Marijuana Penny Stocks In 2021
After starting the year with triple-digit percentage gains, the best cannabis penny stocks to buy are trading at lower levels. In essence, this could be an opportunity for investors to start a position before the next rebound in the cannabis sector. For investors new to the cannabis sector there are a few important elements to consider.
For one the best marijuana stocks to watch are some of the more volatile equities on the market. By definition, penny stocks are any stock trading under $5 per share. Because of this volatility many investors use short-term trading methods to capitalize on the price fluctuations.
Finding the best marijuana stocks to buy takes due diligence on the part of the investor. Most of the time traders get the best results when they research a company and study how the stock performs in the market. This can help you find the best companies to invest in and also the best entry points for your position. With this in mind let’s take a look at 2 marijuana penny stocks to add to your watchlist this week.
- Top Marijuana Stocks To Watch In The US Cannabis Industry
- Marijuana Stocks Are On The Move But Will Trading Continue To Rise This Month?
Marijuana Stocks To Watch:
Acreage Holdings, Inc. (OTC: ACRHF)
Harborside Inc. (OTC: HBORF)
Acreage Holdings, Inc.
Based out of New York City Acreage Holdings, Inc. is an MSO of cannabis cultivation and retail facilities in the US. On May 10th Acreage announced its Q1 2021 results with consolidated revenue of $38.4 million an increase of 58% compared to Q1 2020. In addition, company-owned same-store sales grew 16% making the ninth consecutive quarter of double-digit same-store sales growth. The company had a net loss in the first quarter of $7.8 million an improvement to the net loss of $172 million in Q1 of 2020. Subsequently, the company had an adjusted EBITDA in Q1 of 2021 of $1.6 million compared to a loss of $12 .3 million in Q1 of 2020.
At the present time Acreage is focused on improving profitability, controlling cost, and accelerating organic growth. In essence, the company has established a footprint in New York and New Jersey and could see significant growth in the coming months and years. In fact, New York is forecast to become one of the largest US cannabis markets. Acreage operates the maximum number of dispensaries allowed in New Jersey currently and is working on the completion of its New Jersey cultivation facility.
ACRHF stock is up 58.06% year to date closing on May 10th at $4.90 per share. With a high in February of $9.00, the stock is down 14.78% in the last month. According to analysts at Market Beat ACRHF stock has a consensus price target of $7.00 per share. In essence, this would represent an increase of 42.9% from current levels. For this reason, ACRHF stock could be a cannabis stock to add to your watchlist right now.
As one of the original California cannabis retailers Harborside Inc. started in 2006. Awarded one of the first six licenses granted in the United States Harborside has six dispensaries in California and Oregon. At the current time, Harborside has started expanding and could continue to grow its presence in California. In April the company reported its fourth-quarter and full-year 2020 results. In particular Harborside saw full-year 2020 gross revenue increase 29% year over year to $63.4 million.
Additionally, full-year 2020 adjusted EBITDA grew to $7.4 million from an adjusted EBITDA loss of $8.9 million in 2019. The company has been experiencing improved harvest yields, higher wholesale volume, and improved operating leverage. Back in January, the company announced it expects gross revenue between $68-$72 million. This increase in revenue is expected to be produced by improved retail pricing and increases from wholesale operations. In general, this outlook shows the company continues to grow organically from its current business strategy.
HBORF stock is up 19.75% year to date closing on May 10th at $1.88 per share. In February the stock established a new 52 weeks high of $2.54 and has been relatively stable at these levels for the past month. According to analysts at Stock Invest HBORF stock is expected to fall by 14.68% in the next 3 months. This analysis is based on short-term trends in HBORF stock trading in the market. With this in mind, HBORF stock is a marijuana penny stock to watch the second week in May.
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