Top Pot Stocks And Their Performance In 2021
At the present time, many analysts are focusing on top marijuana stocks to buy to start July. Last month most of the best US cannabis stocks began rebounding in the market. After 4 months of declines, it seems pot stocks are giving investors some upward momentum. This could be a good opportunity to find some of the best marijuana stocks to invest in for the summer.
In 2021 the cannabis sector saw a tremendous rally in the first quarter because of the possibility of cannabis reform. Although this has not yet been accomplished there are many lawmakers pushing for legislation to be passed this year. In the US leading cannabis companies have been expanding rapidly across the states solidifying their market share for the future. Additionally, most companies have also delivered strong revenue gains and continue to show substantial growth in 2021.
Unfortunately for investors, this has not translated to gains in the market. Since the presidential election in November of 2020, the cannabis sector has really only moved due to American cannabis legalization and reform. Instead of climbing higher on strong earnings most of the best marijuana stocks to buy fell while they reported financials. This has left them trading at levels that could produce gains for cannabis investors with more momentum. Canadian marijuana stocks have also seen similar market trends in the first half of 2021.
Understanding The Risk Of Buying Cannabis Stocks
For new investors, before investing in cannabis stocks there are some important factors to consider. One element that traders need to be aware of before investing is the market volatility in top pot stocks. Traditionally the cannabis sector is known for being one of the more volatile areas of the market. Already in 2021, we have seen a rally in the first quarter and a steep decline throughout the second quarter.
Now could we see another rally in the third quarter of 2021? At the present time pot stocks have been consolidating near current trading levels for about four months. Going into the third quarter there are a few potential catalysts that could produce gains in the cannabis sector.
Researching these companies and finding the top-performing companies can help investors establish the best positions for their investments. With this in mind, we can take a closer look at cannabis companies that are delivering strong revenue growth for investors. As it stands these cannabis stocks could be some of the top marijuana stocks to add to your watchlist in July.
Top Marijuana Stocks To Watch
Verano Holdings Corp.
Verano Holdings Corp. is a leading, MSO in the U.S. providing responsible access to regulated cannabis products. The company produces a comprehensive suite of premium, innovative cannabis products sold under its portfolio of consumer brands. At the present time, the company’s portfolio encompasses 14 U.S. States, with active operations in 11. Currently, Verano has 78 operational dispensaries, and 10 cultivation and processing facilities. Verano designs, builds, and operates dispensaries under retail brands Zen Leaf and MÜV that deliver a superior cannabis shopping experience in both medical and adult-use markets.
On July 1st Verano announce it would deliver its second-quarter 2021 financials on August 10thbefore the open. In Q1 2021 Verano reported earnings with revenue of $143 million up 117% year over year. Additionally, the company saw gross profit margins of over 62% in Q1 2021. In the first quarter, the company completed the acquisition of TerraVida and The Healing Center. As a result, Verano added six dispensaries in Pennsylvania and acquired a permit to build an additional three in the state.
VRNOF stock closed at $16.85 on July 1st down 5.92% in the past five trading days. In February VRNOF stock set a 52-week high of $28.00 and is down 11.36% in the past month of trading. According to analysts at Tip Ranks VRNOF stock has a 12-month average price target of $29.16 this would represent an increase of 73.06% from its current trading price. For this reason, VRNIF stock is a top US marijuana stock to watch right now.
High Tide Inc.
High Tide Inc is a leading cannabis enterprise operating across Canada, Europe, and The United States. The company has a portfolio of companies that include a dominant Canadian cannabis retail chain, a global manufacturer, and a distributor of cutting-edge smoking accessories. In addition, the company has also established the largest accessories eCommerce platform in the world. With a decade of development, High Tide is positioning for international expansion through emerging legal markets.
On June 28th High Tide reported its second-quarter 2021 results with revenue increasing 99% to $40.9 million. Gross profit margins for Q1 were $4.7 million compared to $1.8 million years over year. In Q2 the company completed the acquisition of Smoke Cartel Inc and launched the sale of hemp-derived CBD products under its Grasscity brand.
HITI stock closed on July 1st at $7.85 up 161.27% year to date. With a 52-week high of $13.29, HITI stock has gained 353.18% in its 1-year performance. According to analysts at Tip Ranks HITI stock has a 12month average price target of C$20.00 per share. This would be a gain of 103.05% from its current trading price. With this in mind, HITI stock is a top Canadian cannabis stock for your watchlist in July.