The Cannabis Industry Landscape In 2020
The landscape of leading marijuana stocks to watch has continued to evolve during 2020. As the U.S. expands many top cannabis companies have shown increasing revenue and sales growth in recent reporting. For example, GrowGeneration Inc. (GRWG Stock Report) has recently reported record 3rd quarter 2020 revenue and the stock is up almost 800% YTD. In general, this has become a current revenue trend amongst U.S. cannabis companies, and looks like it could persist into 2021. On the other hand, many leading Canadian marijuana stocks have shown some pullback in the market this week. In fact, top-performing Canadian cannabis company Aphria Inc. (APHA Stock Report) is losing some market value in this week’s trading. In reality, this is occurring after announcing a merger with Tilray, Inc. (TLRY Stock Report) to form the biggest Canadian cannabis company by sales.
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In essence, investing in today’s market could demand some attention in order to find market value. As an investor sometimes it could become difficult to find the best cannabis stocks for your watchlist with so many choices. It’s important to consistently get current information on how cannabis companies are performing and their potential for future growth. At the present time, it might be wise to approach trades with cautious optimism. In reality, investors should be watching closely for economic developments that could affect market trends. Since the U.S. is continuing to struggle with the COVID-19 pandemic a shutdown event could affect the market. Currently, investors seem to be optimistic about the COVID-19 vaccine and its potential relief from the virus. And this can be seen by the record highs the market has seen in December.
Major Events That Could Affect Leading Marijuana Stocks To Buy
So, for some investors, it’s hard to start a position in cannabis stocks that have seen significant gains in the past two months. In general, some marijuana stocks could lose market value in the event the Senate doesn’t pass the MORE Act. For fear that the U.S. cannabis market could be negatively impacted by the above-mentioned events, shareholders are keeping an eye on things. But one thing for sure is that the next five years are predicted to be monumental for the Cannabis industry. For the purpose of exploring options in the extraction and CBD space of the cannabis market let’s take look at 2 marijuana stocks to watch for 2021.
Marijuana Stocks To Watch In 2021 #1: The Valens Company Inc.
The Valens Company Inc. (VLNCF Stock Report) is a global leader in the development and manufacturing of cannabis-based products. In detail, Valen’s is known as the largest third-party extraction company in Canada. The company has an annual capacity of 425,000 kg of cannabis and hemp biomass at its facility in Kelowna, British Columbia. Currently, Valens produces a wide variety of derivative products ranging from soft gels, oral sprays, vape pens, beverages, edibles, and concentrates. Recently the company was awarded a wholesale license required to sell cannabis-derived products in Australia. Because Valens is an extraction company the first half of the year was challenging for it due to the pandemic shutdowns in Canada. But in their 3rd quarter, 2020 reporting in October net revenue for the period was $18.1 million up 10% from Q3 of 2019.
VLNCF Stock has a 52-week high of $3.12 and is currently trading at $1.36 on Thursday, December 17th. At the current moment, analysts are giving VLNCF stock a target price forecast of $5.25. This would be a 286% increase from its current stock price. And recently the stock has been trading sideways for some time. Because VLNCF stock is trading at some of the lowest price action it has seen in the year it could be positioned for a bounce. For this reason, VLNCF stock is a pot stock to watch heading into 2021.
Marijuana Stocks To Watch In 2021 #2: Neptune Wellness Solutions Inc.
Neptune Wellness Solutions Inc. (NEPT Stock Report) is a global health and wellness company that creates innovative cannabis consumer products. The company’s focus is on delivering a sustainable plant-based purpose-driven line of lifestyle brands to consumers. Recently Neptune’s reported its 2nd quarter fiscal 2021 report which shows a revenue increase of more than 340% year over year and over 155% increase sequentially. Although the company is showing increasing revenue it also has shown a gross profit loss of $4552 compared to a profit of $3256 quarter over quarter. Provided that current trends in marijuana stocks continue to persist, this could be a turning point for Neptune Wellness.
NEPT Stock is down 42% year-to-date and has shown some potential for gains from current levels. Currently, analysts gave NEPT stock a price target of $4.24 an increase of over 165% from its current market value. Because Neptune has the potential to gain market share in the Canadian derivatives market it could have grown in 2021. For this reason, NEPT stock is a Canadian cannabis stock to watch for 2021.