Investing In Cannabis Stocks In 2021
For new investors top marijuana stocks present an opportunity to gain exposure to one of the fastest-growing markets in the world. In the US the cannabis industry has been expanding rapidly since the pandemic and a new pool of traders has entered the market through investment platforms like Robinhood and Webull. Retail trading has become a significant force in the stock market. Earlier in the year some leading cannabis stocks became known as meme stocks and favored by Reddit investors.
Ultimately this pushed these particular pot stocks to new highs with heightened volume. This phenomenon lasted until almost mid-February and the cannabis sector has been declining in the market since that event. Until June the best marijuana stocks to invest in have been trading near their lowest stock prices this year. Last month we witnessed some upside in the market that could be signaling a rebound for cannabis stocks.
One possible catalyst for the cannabis sector is American Cannabis legalization and reform. After the presidential election, the notion that the US would soon legalize cannabis fueled the top marijuana stocks to higher levels in the market. But now with reality setting in that the federal reform process could take longer than expected marijuana stocks have settled lower. For many investors familiar with cannabis stocks, they use these time periods to add to their positions or start new ones at lower entry points.
Understanding Marijuana Stocks And Market Performance
Before investing in the cannabis sector there are a few important factors to consider. For one the best cannabis stocks to invest in are known for having extreme market volatility. Because of this volatility, it’s important for investors to research a company thoroughly before investing. This entails looking into their earnings and studying how they perform in the market.
This can help traders establish the best positions for their investments and help solidify the most returns. With this in mind, we can begin to take a look at some marijuana stocks that may hold future potential for investors. As the market improves the cannabis sector may have some upward momentum in the summer of 2021. At current levels, these top marijuana stocks could be game-changers for your watchlist in July.
Top Marijuana Stocks To Watch Right Now
Cresco Labs Inc.
Cresco Labs Inc is one of the largest vertically integrated MSOs in the US. and the number one wholesaler of branded cannabis products. Currently, the company is expanding rapidly and operates 33 retail locations in 10 states. Recently the company opened its fourth Sunnyside dispensary in Pennsylvania. In its first-quarter 2021 financials, Cresco delivered a record revenue of $178 million. At the present time, the company expects to reach an annualized revenue of more than $1 billion in 2021. In Q1 2021, Cresco delivered gross profits of $87.0 million or 48.8% of revenue. As a result, the company now expects gross profits margins of more than 50% for the remaining 3 quarters.
Last month Cresco announced a portfolio expansion of its Good News brand with more selections in the edibles and vaping areas. In particular, under the Good News brand Cresco is launching Counting Sheep, Day Off, and Pride products. At the present time, these edibles and vape products will be available in California, Illinois, and Michigan. Also, Cresco recently launched a social justice campaign on the 50th anniversary of the War on Drugs policy.
CRLBF stock is trading at $11.31 up 11.51% year to date. In February CRLBF stock reached a 52-week high of $17.49 and has gained 168.29% in its 1-year performance. According to analysts at Tip ranks CRLBF stock has a 12-month average target price of $21.22 per share. In essence, this would represent an increase of 87.29% from its current trading price. For this reason, CRLBF stock could be one of the best marijuana stocks to buy this week in July.
One of the first California cannabis retailers Harborside Inc. was founded in 2006. Awarded one of the first six licenses granted in the United States Harborside has six dispensaries in California and Oregon. Presently, Harborside has started expanding its footprint and could continue to grow its presence in the California market. In May Harborside released its first-quarter 2021 earnings with Q1 gross revenue of $13 million.
The company saw Q1 2021 Adjusted EBITDA grow to $1 million from $0.3 million in Q1 2020. In addition, Harborside reaffirmed gross revenue between $68-$72 million in 2021. On July 5th the company completed the acquisition of Sublime one of California’s award-winning infused pre-roll brands. In June Harborside also completed upgrades to its Salinas cultivation facility gaining over 50% annual cultivation capacity and year-round production.
HBORF stock is trading at $1.47 down 6.31% in the last five trading days. In February HBORF stock reached a high of $2.54 and has gained 187.16% in its 1-year performance. According to analysts at Wallet Investor HBORF stock has a 1-year price forecast of $2.287 per share. As a marijuana penny stock with a strong company behind it HBORF could begin to see upward momentum in 2021. With this in mind, HBORF stock is a top marijuana penny stock to watch right now.