Top Pot Stocks In Q3 2021
Currently, many investors are asking themselves, is there still an opportunity to invest in top marijuana stocks in 2021? As it stands the cannabis sector has seen months of declines until it began to turn around in June. Now as we start July the US cannabis market is currently the center of attention and it seems most of the world is waiting for federal cannabis reform in 2021.
At the present, it seems many lawmakers are pushing some form of federal cannabis reform and legalization in 2021. This could further enhance the speed at which the top US cannabis companies build their market share. So far in 2021 American cannabis companies have delivered some very strong earnings that solidify their performance over their Canadian counterparts. In the first quarter, many top marijuana companies reported significant gains in revenue that did not translate into market gains for US pot stocks.
Instead, it seems that US cannabis stocks have continued to consolidate at current trading levels. In June some modest upside has begun and could be the start of a rebound for top marijuana stocks right now. In the second quarter, top cannabis stocks reached their lowest trading prices so far in 2021. Now, these lower levels may present new investors with better entry points for their investments.
Investing In The Best Cannabis Stocks In 2021
At the present time, many analysts are predicting some more upside for top cannabis stocks from these levels. For investors, it’s important to always do your due diligence before making an investment. This constitutes researching a company’s financials and studying how the stock performs in the market. Because the cannabis sector is known for volatility this will help investors establish the best entry point to make a profit. All things considered, this could be time to find the best US cannabis stocks to invest in for the summer and second half of the year.
With this in mind, we can take a closer look at some top US companies with future potential. In the US these companies have expanded rapidly through mergers and acquisitions and have also shown a strong performance in 2021. Yet another reason to add these pot stocks to your watchlist is the increase in their 2021 revenue guidance. As we start the third quarter of 2021 these could be the best marijuana stocks to buy in 2021.
Top Marijuana Stocks To Watch In 2021
Trulieve Cannabis Corp.
Trulieve Cannabis Corp. has established the largest market share in Florida with more than 50% of the legal cannabis sale in the state. Recently, the company made an acquisition that’s positioned it as the largest cannabis company in the world. To clarify, once the acquisition of Harvest Health & Recreation Inc. (OTC:HRVSF) is complete the new company will have a consensus 2021 revenue of $1.2 billion. To put it simply with this agreement Trulieve is now considered the largest revenue-producing cannabis company worldwide. In detail, the new company will operate in 11 states with a total of 126 dispensaries servicing both the medical and recreational cannabis markets.
As it stands the companies combined adjusted EBITDA of $266 million and a 2021 consensus adjusted EBITDA of $461 million making it the most profitable cannabis company in the US. Trulieve reported a record first-quarter 2021 revenue of $193.8 million producing a net income of $30.1 million. In June the company opened its first dispensary in the state of Massachusetts giving Trulieve a new market to expand in. To start July Trulieve announced it is celebrating Pride Month with a $60,000 donation to four Florida non-profits the company has partnered with to support the movement.
TCNNF stock is trading at $38.55 on July 1st up 18.60% year to date. In March TCNNF stock reached a new high of $53.73 and has gained 198.57% in its 1-year performance. According to analysts at Market Beat TCNNF stock has a consensus price target of $70.97 per share. This would represent an increase of 89.3% from its current trading price. For this reason, TCNNF stock could be one of the best US marijuana stocks to buy in 2021.
Green Thumb Industries Inc.
Green Thumb Industries Inc. is another leading cannabis consumer packaged company that has established a large footprint in the US. At the present time, GTI has 58 retail locations across 11 states and recently acquired a Massachusetts cannabis operator Liberty Compassion Inc. As a result, GTI has licenses for 103 retail locations for future expansions. Green Thumb announced its first-quarter 2021 financials with total revenue of $194.4 million. In comparison, this is an increase of 89.5% from Q1 of 2020. For the first quarter of 2021, the company is reporting gross profits of $110.9 million or 57% of revenue.
In fact, GTI is reporting its third consecutive quarter of positive GAAP net income of $10.4 million or $0.05 per basic diluted share. Recently, in Nevada GTI opened a Cookies on the Las Vegas Strip through a partnership with the privately-owned Cookies Brand. To close June GTI announced it would hold its Q2 2021 earnings release on August 11th after the close. To start Q3 GTI announced it closed the acquisition of Dharma Pharmaceuticals and is entering the Virginia cannabis market.
GTBIF stock is trading at $33.29 On July 1st up 34.69% year to date. In February GTBIF stock reached a high of $39.11 and has gained 230.08% in its 1-year performance. According to analysts at Tip Ranks GTBIF stock has a 12-month average price target of $46.59 per share. In essence, this would represent an increase of 39.95% from its current trading level.
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