Best Marijuana Stocks 2021
Are you looking for ways to invest in top marijuana stocks in 2021? In September the best cannabis stocks to buy are trading near their lowest market values so far this year. To start the week the overall markets plunged heavily on Monday due to concerns over China’s property market. This also affected the cannabis sector bringing down top pot stocks to begin the week. Although these marijuana stocks are trading at lower levels for the first half of 2021, they have reported strong earnings.
In general US cannabis companies have seen significant revenue growth this year have given guidance that shows this trend will continue. For the most part, September is historically one of the worst trading months of the year. After peaking on February 10th, the cannabis sector has been sustaining declines for the past 7 months.
Now with this market pullback, it could be time to find top pot stocks for your watchlist during this dip. For the next five years, the cannabis industry is forecast to more than double as the market expands. In the US top-tier MSOs have been expanding their footprint across the American market with mergers and acquisitions. On the state level, the cannabis industry is growing rapidly as new states legalize cannabis use.
Investing In The Cannabis Market And Things To Know
In addition, an amendment almost identical to the SAFE Banking Act has been attached to a defense bill that could create cannabis banking reform in the fourth quarter. Generally, this could be a catalyst that could push the cannabis sector higher if it’s passed in Congress. While marijuana stocks are at their lowest market values this year investors could start looking for entry points in the market. Before investing in the cannabis sector, it’s important to always do your research before starting a position.
Looking into a company’s financial results and studying how the stock moves in the market can help you achieve the most gains. As the futures market looks like it’s recovering some of the losses seen in yesterday’s trading these top cannabis stocks could see some upside. In the US these top-tier MSOs could become some of the world’s largest cannabis companies in the next five years. Let’s look at 2 of the best US marijuana stocks for your list right now.
Top Marijuana Stocks In Q4 2021
Ayr Wellness Inc.
Ayr Wellness Inc. is the fourth largest cannabis company in the Florida cannabis market. As it stands, Ayr has 41 operating dispensaries in Florida and a total of 55 stores nationwide. In addition, the company has entered the Illinois market with the acquisition of Herbal Remedies Dispensaries, LLC. Ayr received a provisional license to sell adult-use cannabis at greater Boston dispensaries in Massachusetts. Ayr has also agreed to acquire Tahoe Hydro an award-winning cultivator and high-quality cannabis flower produce in Nevada. Recently, Ayr Wellness Partner Land of Lincoln was awarded a retail dispensary license in Illinois through the state’s lottery process.
In September the company signed an agreement to acquire the owner of Levia cannabis-infused hard seltzers. On September 20th the company its latest dispensary in Pensacola, Florida. In August Ayr reported its second-quarter 2021 results with revenue of $91.3 million up 222% year over year. The company adjusted EBITDA was $27.4 million on a US GAAP basis up 225% year over year. Ayr sustained a US GAAP operating loss of $24.9 million which included one-time expenses, and non-operating adjustments of $52.3 million. The company raised its 2022 revenue target to $800 million with a $300 million AEBITDA. In addition, Ayr provided a 3Q 2021 guidance of $100 million in revenue.
AYRWF Stock Performance
AYRWF stock closed on September 20th at $21.33 down 17.67% in the last month. The stock has a 52-week price range of $20.00-$37.50 and has declined 10.30% year to date. According to analysts at Tip Ranks AYRWF stock has a 12-month average price target of $54.77 per share. In essence, this would be a 156.77% gain from its last trading price of $21.33. For this reason, AYRWF stock could be one of the best US marijuana stocks to buy in 2021.
Cresco Labs Inc.
Cresco Labs Inc is another one of the largest vertically integrated cannabis companies in the US market. In fact, the company is considered the number one wholesaler of branded cannabis products in America. According to a new BDSA report is the leading cannabis brand in Illinois and Pennsylvania. At the present time, Cresco operates 33 retail locations across 10 states with 18 production facilities and 44 retail licenses. Recently, the company opened its fourth Sunnyside dispensary in Pennsylvania as the company expands into other key markets. In addition, the company announced a portfolio expansion of its Good News brand with more selections in the edibles and vaping areas. Specifically, these edibles and vape products will be available in California, Illinois, and Michigan.
Cresco announced the acquisition of Blair Wellness Center a Maryland dispensary. In its latest financials, Cresco announced its second-quarter 2021 results with a record revenue of $210 million. In addition, the company reaffirmed its annualized revenue guidance of $1 billion in 2021. As a result, the company delivered gross profits excluding fair value markups of $107 million or 51% of revenue. Cresco has a net income of $2.7 million and an adjusted EBITDA of $45.5 million. For its future outlook, the company expects gross profit margins of more than 50% for the remaining two quarters of 2021.
CRLBF Stock Performance
CRLBF stock closed on September 20th at $8.18 down 6.30% for the trading day. The stock has a 52-week price range of $5.33-$17.49 and is down 17.08% year to date. According to analysts at Market Beat CRLBF stock has a consensus price e target of $23.88 per share. In this case, this would represent an upside of 191.9% from its last trading price of 8.18. For investors looking to get in the cannabis sector, this could be a good time to find the best cannabis stocks to invest in for 2021.
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