Growth In Cannabis Market Stimulates Revenue
As the cannabis industry grows at a rapid pace across the U.S. and on a global scale many marijuana companies stand to benefit from this expansion. Across the U.S. and Canada, marijuana companies have been preparing for an industry with this much potential growth. Recently more investors are realizing the future potential the cannabis market has for both the short and long term.
In fact, many analysts are predicting U.S. sales to be in the $24 billion range. In perspective for 2020 cannabis sales are estimated between $18-$21 billion this is showing how the addition of new states continues to add revenue growth. At the present time, many cannabis investors believe Canadian marijuana stocks will benefit from the continued growth of the cannabis industry.
Although it could take some time to establish entry into the U.S. market. Canadian cannabis companies have established entry plans in advance. For example, Canopy Growth Corporation (NASDAQ: CGC) is planning to release a line of THC-infused beverages with Acreage Holdings, Inc. (OTC: ACRHF) during the summer of this year. Other leading Canadian companies have also positioned themselves preparing for the U.S. to reform federal regulation.
Pot Stocks Current Pullback In The Market
Currently, after establishing new market highs in February most pot stocks have pulled back from those levels and are consolidating lower. One important thing to keep in mind about cannabis stocks is how volatile they behave in the market. As one of the more volatile sectors in the market pot stocks has begun showing more price fluctuation. This is good to keep in mind before investing in marijuana stocks. Taking the time to watch how a stock performs in the market is one way to become familiar with its performance.
In addition, investors should do their due diligence on a company by analyzing its financials and future plans. This type of research will give investors a better understanding of the company they are investing in. For the purpose, of find different opportunities in the cannabis market let’s take a look at 2 cannabis stocks showing momentum in 2021.
- Are These Marijuana Stocks To Buy Worth Being In Your Portfolio?
- 2 Marijuana Stocks Up 213% and 362%, Are They On Your Watchlist?
Marijuana Stocks To Watch:
Village Farms International, Inc.
Village Farms International, Inc. is one of the largest operating greenhouse growers in North America. With its experience in large-scale agriculture, the company has become a producer of cannabis and CBD in North America and other international markets. To elaborate Village Farms wholly-owned subsidiary Pure Sunfarms is considered one of the largest cannabis operations in the world. In fact, the low-cost greenhouse producer has generated seven consecutive quarters of profitability. Currently, in the U.S. the company is strategizing to become a leading supplier of white-labeled CBD.
This month on February 4th Village Farms announced Pure Sun Farms launched its first cannabis-infused edible products in the form of gummies. In detail, the full range of flavors and potencies will be available a few Canadian provinces. Pure Sunfarms is expecting to have the only gummies in Canada made using real fruit. In 2020 Village Farms had a strong performance in its third-quarter results. Pure Sunfarms net sales rose by 75% to $17.79 million. Additionally, the company achieved 15.2% of the market share of the dried flower category.
VFF stock is up 75.44% year-to-date with a high of $20.32 on February 10th. Currently on February 17th, VFF stock is trading at $17.28 going into power hour. In general analysts at CNN Business are giving VFF stocks a 12-month price target of $21.94. Essentially this would be a 23.31% gain from current levels. For this reason, VFF stocks is a top cannabis stock to watch in 2021.
Aurora Cannabis Inc.
Aurora Cannabis Inc. is a global leader in the cannabis industry serving both medical and adult-use markets globally. At the present time, the company produces branded cannabis products as an industry leader in the medical and recreational markets. In 2020 Aurora spent much of the year trying to improve its financial standings. In an effort to improve efficiency, Aurora has aligned production volumes to current sales.
On February 11th announced Q2 fiscal 2021 results with net revenue of $70.3 million. In these sales medical cannabis revenue was $38.9 million is up 42% from Q2 2020. Also, important Aurora managed to cut adjusted EBITDA loss to $12.1 million.
ACB stock is up 56.08% since the start of the year and saw a 52-week high of $21.48 in February of 2020. At the moment ACB stock is trading at $12.97 on February 17th. Recently analyst is expecting ACB stock to shed some of its recent market gains. Specifically, analysts at TipRanks are giving ACB stock a 12-month average price target of $9.43. With the Canadian cannabis sector growing quickly ACB stock could continue to improve its financial position. With this in mind, ACB stock is a top Canadian marijuana stock to watch for potential gains.