Investing In Cannabis Stocks As The Trade Lower
Are you looking for top marijuana stocks that could hold future value for investors? In October most of the best cannabis stocks to invest in are trading near their lowest price points in 2021. As inflation concerns continue to play a big part in the markets down showing pot stocks have continued to decline as well. In the last month, federal cannabis legislation has begun to regain the interest of lawmakers. In the House, legislators passed the SAFE Banking Act and the MORE Act to try and establish cannabis reform before the end of the year.
But there still seems to be a hold up in the Senate and Chuck Schumer is still trying to gain support for his marijuana reform legislation. Almost halfway through October, top marijuana stocks continue to decline and consolidate at lower levels. For investors looking to start new positions in top cannabis stocks, this could be a good time to start a watch list in 2021.
In the US many cannabis companies continue to deliver strong earnings in recent reporting. Many analysts believe the cannabis industry could more than double in the next five years. In general, the cannabis industry could be one of the fastest-growing markets for quite some time. But before investing in top marijuana stocks there are a few important factors to consider.
US Pot Stocks And Current Market Volatility
For one the best marijuana stocks to invest in are known for having substantial market volatility. This makes investing in top marijuana stocks a higher-risk trade in the market. Because of this, it’s important for investors to research a company and study how the stock performs in the market before investing. Looking into a company’s earnings and watching charts are a stock can help you achieve the best positions for your investments.
As top pot stocks continue this downtrend this could be time for new investors to get into the cannabis market at the lowest trading levels seen this year. In the fourth quarter, the chances of seeing federal marijuana legalization have increased significantly. This could be a major event for the cannabis industry and could bring some upward momentum to the sector. Let’s look at 2 top cannabis stocks for your list this week.
Best Pot Stocks In Q4 2021
Ascend Wellness Holdings, Inc.
At the present time, AWH is a vertically integrated operator with assets in Illinois, Michigan, Ohio, Massachusetts, and New Jersey. Primarily, AWH owns and operates state-of-the-art cultivation facilities, growing award-winning strains and producing a curated selection of products. Specifically, its business provides accessible retail experiences, trusted products, and exclusive brand partnerships and produces and distributes Ozone branded products. In general, the company’s cannabis product categories include flowers, pre-rolls, concentrates, vapes, edibles, and other cannabis-related products. As it stands, AWH operates 17 retail locations and sells its products to third-party licensed cannabis retail stores. So far in October, ascend is expanding its vertically integrated footprint in Ohio.
AWH reported its second-quarter 2021 financial with net revenue of $83.4 million up 26.1% sequentially. To highlight, the company increased its 2021 full-year net revenue guidance to $330-$350 million. AWH sustained a net loss of $44.9 million in Q2 2021 mainly driven by a $32 million non-cash interest expense related to the company’s IPO completed in May of 2021. In 2021 the company added five new dispensaries year to date with 3 becoming operational in the second quarter. In September AWH announced it has brought legendary brand Lowell Smokes pre-rolls from Lowell Farms Inc. (OTC:LOWLF) to the Massachusetts market. The partnership is an expansion to a similar launch in Illinois by the two companies.
AAWH stock is trading at $8.85 on October 12, 2021, down 4.84% for the day. Currently, the stocks have a price range of $8.00-$15.81 down 1.81% in the past month. According to analysts at CNN Business AAWH stock has a 12-month median price target of $16.00 per share. In this case, this would represent an upside of 80.79%. With the potential for sizable gains, AAWH stock could be a top marijuana stock for your watchlist right now.
Glass House Brands Inc.
Next on the list is, Glass House Brands Inc. one of the fastest-growing, vertically integrated cannabis and hemp companies in the U.S. The company has is focusing on the California market and building leading, lasting brands to serve consumers across all segments. Essentially this is through its portfolio of brands, which includes Glass House Farms, Forbidden Flowers, and Mama Sue Wellness, Glass House is committed to realizing its vision of excellence, outstanding cannabis products, and produced sustainably, for the benefit of all. In September the company completed a 5.5 million-square-foot Southern California greenhouse facility acquisition.
In August Glass House reported its second-quarter 2021 results with net sales of $18.7 million an increase of 62% year over year. As a result, the company delivered gross profits of $8.7 million an increase of 56% from the previous year. Notably, the company had a gross margin of 46% in Q2 2021. In addition, the company had an adjusted EBITDA of $2.2 million a 100% increase from Q2 2020.
GLASF stock is trading at $4.835 on October 12, 2021, up 5.64% in the past five trading days. The stock has a price range of $4.20-$6.00 and is down 51.73% year to date. As a new cannabis company in the market GLASF stock could deliver some returns for investors. In October as top pot stocks continue this downtrend GLASF stock could be a top cannabis stock for your watchlist this month.
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