This Week Watching Cannabis Stocks In The Market
To start the last week of April some of the best marijuana stocks to buy are showing some upward momentum in the market. While the month of April has delivered substantial losses to most of the top marijuana stocks to buy in the cannabis sector there could be a turnaround in momentum this week. In 2021 there are some general events that could become major catalysts for top cannabis stocks to see gains in the market.
For one The SAFE Banking Act has made its way to Senate and could be the jump-start the sector needs to start climbing in the market. In addition, more states continue to legalize recreational cannabis expanding the market with the addition of these cannabis sales to market. In 2020 most leading cannabis companies showed substantial growth in revenue and expanded their presence with additional dispensaries.
As the market continues to grow so do the chances of cannabis stocks producing gains in the market. Building a marijuana stock list before May is a good way to see potential gains in the sector. Currently, most marijuana stocks are trading near their lowest market values in 2021. One area that is known for market volatility but also has produced the most gains in 2021 is marijuana penny stocks.
Investing Cannabis Penny Stocks In 2021
Specifically, penny stocks are any securities trading less than $5 a share in the market. Although this area of the market is more susceptible to volatility it also has the most potential for gains. After a significant rally at the top of this year, the best marijuana stocks to buy are now at trading levels that could be considered a good entry point to start a position.
With the intention of researching some options for your watchlist heading into May, we can take a deeper look into some pot stocks. As the market heads back up to its record highs this be good for marijuana stocks right now. With this in mind let’s take a look at 2 marijuana stocks trading under $2 the last week in April.
- Check Out These Top Marijuana Stocks To Watch This Week
- Are These The Best Canadian Marijuana Stocks To Buy Before May? 2 To Watch This Week
Marijuana Stocks To Watch:
4Front Ventures Corp.
4Front Ventures Corp. is a U.S. multi-state operator and cannabis retailer that distributes over 25 cannabis brand products nationwide. At the present time, 4Front has retail locations in Illinois, Massachusetts, California, Michigan, and Washington state. Earlier in April 4Front delivered Q4 and fiscal year 2020 results with fourth-quarter pro forma revenue up to $25 million and full-year proforma sale of $88.1 million.
Additionally, 4Front reiterated its previously announced full-year 2021 guidance and estimates Systemwide Pro Forma Revenue of $170-180 million. Also, its 2021 Adjusted EBITDA is estimated to grow to $40-50 million. In general, these figures show substantial growth potential that could produce gains in the future. Watch for more expansion for the company in the key market it is established in.
FFNTF stock is up 43.96% year to date with a high of $1.98 in February. Heading into the last half hour of trading on April 26th at $1.29 the stock has gained 1.55% in the last 30 days. According to analysts at Stock Invest are giving FFNTF stock is expected to fall 16.54% in the next 3 months. With this in mind, investors should consider putting this cannabis stock on their watchlist and look for a better entry point.
[Read More] Best Marijuana Penny Stocks For May 2021
Sundial Growers Inc.
Sundial Growers Inc. is a licensed producer of cannabis crafting products using state-of-the-art indoor facilities in Canada. Currently, the company utilizes a small batch approach to its cannabis production has been delivering award-winning quality cannabis for customers in Canada. Recently Sundial invested in Indiva Limited a leading Canadian producer of cannabis edibles. With this investment, the company is adapting its process to meet consumer needs for better-quality extracts and derivatives.
In Sundial’s latest Q4 and full-year 2020 financials, the company sold 23,500 kilograms of cannabis in 2020. This is an increase of 36% year over year versus 2019. Although branded cannabis sales grew to 75% of total cannabis sales to $55.3 million the company experienced substantial losses. Specifically, the net loss from operations was $206.3 million in 2020. Also important, the net loss contains impairment charges related to inventory and asset impairments.
SNDL stock is up 76.33% year to date with a high of $3.96 in February. Currently heading into the close at $0.872 the stock is up 4.4436% on April 26th. According to analysts at CNN Business SNDL stock has a 12-month median price forecast of $0.73 per share. This would be a 16.75% drop from current levels. For this reason, SNDL stock could be a marijuana penny stock to watch in May.