How to invest in cannabis stocks this summer
Are you on the hunt for the best marijuana stocks to invest in this summer? So far in July, the cannabis industry continues to see some uptick in trade. Currently, many buyable marijuana stocks are trading well below the highs reached this year. This was the result of a decline in the cannabis industry after the overall market suffered a massive sell off in February. Over the past four months, major pot stocks have consolidated near some of their lowest prices this year.
Although marijuana stocks have been somewhat volatile in 2021, the growth prospects for the cannabis industry for the next five years make some of the top cannabis stocks attractive over the long term. According to a recent Statista report, US sales of legal recreational cannabis are expected to reach approximately $ 42 billion by 2026. This would be more than double the size of current revenues that the US cannabis market produces.
Momentum on the rise for the best potted stocks on your watchlist
In the first quarter of 2021, the major cannabis companies recorded strong earnings growth and continue to perform well in 2021. Despite these strong first quarter earnings, the major marijuana stocks remained on the downside in the market. This gave investors the ability to find the best cannabis stocks to buy at lower entry levels.
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From June, the cannabis industry started to recover some of the value lost after mid-February. For the most part, US jar stocks saw better market value from July. With that in mind, we can take a closer look at some of the top marijuana stocks for your watch list next week. As market conditions continue to improve for the cannabis industry, these could be the best marijuana stocks to add to your list in July.
The best marijuana stocks to watch out for
- Cresco Labs Inc. (OTC: CRLBF)
- Ayr Well-being Inc. (OTC: AYRWF)
- Trulieve Cannabis Corp. (OTC: TCNNF)
Cresco Labs Inc.
One of the leading vertically integrated MSOs in the United States is Cresco Labs Inc. Currently, the company is one of the leading wholesalers of branded cannabis products in the United States. In June, Cresco expanded its presence and now operates 33 outlets in 10 states. Last month, the company opened its fourth Sunnyside dispensary in Pennsylvania. Cresco achieved record revenue of $ 178 million in the first quarter of 2021. The company expects to achieve annualized revenue of over $ 1 billion in 2021. Cresco achieved gross profit of 87 , $ 0 million in the first quarter of 2021, or 48.8% of its sales. Going forward, the company expects gross profit margins of over 50% for the remaining 3 quarters of 2021.
Cresco recently expanded its Good News brand portfolio by adding edibles and vaping selections to its line. Specifically, the company launched the Counting Sheep, Day Off and Pride products under the Good News brand. These edibles and vape products will be available in California, Illinois, and Michigan. Cresco Expected to Release Second Quarter 2021 Financial Statements on August 13e before the market opens.
Closing of the CRLBF title on July 9e to $ 11.59, up 17.49% year-to-date. In February, CRLBF stock hit a high of $ 17.49 and rose 184.77% on its 1-year performance. According to analysts at Tip Ranks, CRLBF stock has a 12-month average price target of $ 21.17 per share. This would represent an increase of 82.66% from its last stock price. For this reason, CRLBF stock is a top cannabis stock to add to your list next week.
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Ayr Well-being Inc.
Ayr Wellness Inc. recently became the fourth largest cannabis company in the Florida market. With a few key acquisitions, the company has expanded its presence and established itself among the leading cannabis companies. At present, Ayr has 36 retail dispensaries in Florida and a total of 52 stores nationwide. Recently, AYR opened a dispensary in Spring Hill, Florida, and another new dispensary in Key West. The company posted revenue of $ 58.4 million in the first quarter of 2021, up 74% year-over-year. In addition, AYR recorded first quarter adjusted EBITDA of $ 18.4 million under US GAAP.
Looking ahead, AYR provided revenue guidance for the second quarter of 2021 with an estimate of $ 90 million, up 218% from the previous year. Also important, the company gave its forecast for 2022 with revenue of around $ 725 million. AYR has opened its sixth dispensary in Nevada near the Las Vegas airport. Last month, the company opened its third dispensary in Pennsylvania through CannTech PA, LLC, a wholly owned subsidiary of the company.
AYRWF stock closed at $ 29.03, up 22.06% year-to-date. In February, AYRWF stock hit a high of $ 37.50 and gained 272.24% on its 1-year performance. According to Market Beat analysts, AYRWF stock has a consensus price target of $ 57.70 per share. This forecast would represent a 98.8% increase over current trading levels. With that in mind, the AYRWF stock might be one of the best marijuana stocks to buy right now.
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Trulieve Cannabis Corp.
Trulieve Cannabis Corp. holds the largest market share in Florida with over 50% of the state’s legal cannabis sale. In a big step, the company has made an acquisition that positions it to become the largest cannabis company in the world. Specifically, the acquisition of Harvest Health & Recreation Inc. (OTC: HRVSF) would create a new company with revenue of $ 1.2 billion in 2021. At present, the company is now considered to be the world’s largest revenue-generating cannabis company. Once the deal is done, the new company will operate in 11 states with more than 128 dispensaries serving both the U.S. medical and recreational cannabis industry.
Trulieve reported record revenue of $ 193.8 million in the first quarter of 2021, generating net income of $ 30.1 million. In July, the company completed the acquisition of Keystone Shops in Pennsylvania and became the leading operator of medical cannabis in West Virginia. In retail, the company began cultivation at its 100,000 square foot facility in Huntington, West Virginia.
TCNNF stock closed at $ 38.25 on July 9e up 20.97% year-to-date. In March, TCNNF stock hit a new high of $ 53.73 and gained 200.71% on its 1-year performance. According to analysts at Tip Ranks, TCNNF stock has a 12-month average price target of $ 68.61 per share. In essence, this would be a gain of 79.37% from its last stock price. As the cannabis industry continues its uptrend, TCNNF shares could be one of the best marijuana stocks to invest in for 2021.
The post The Best Marijuana Stocks To Buy Right Now? 3 US Pot Stocks For Your List In July Appeared First On Marijuana Stocks | Cannabis investments and news. Roots of a budding industry. (TM).
COMTEX_389610773 / 2683 / 2021-07-10T10: 00: 22
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