Best Cannabis Stocks In 2021
Are you looking for top marijuana stocks to invest in before October? In September the best cannabis stocks to buy have seen significant market volatility throughout the month. Last week the cannabis sector received a boost when Congress passed the SAFE Banking Act through the House. This week the House is expected to vote on the MORE Act which could generate some upward movement in the market for the cannabis sector. So far in 2021 US marijuana legalization has been a catalyst for movement in the market in the first quarter.
Now as the possibility resurfaces in the fourth quarter it creates some upside in pot stocks. One way many more investors are locking in short-term gains is by trading top marijuana penny stocks. For those not familiar with penny stocks these are any stocks that trade under the $5 mark. Some investors use day trading and swing trading methods to take advantage of the price fluctuations in these volatile positions.
Because of lower price points, investors can establish larger positions with less capital. This allows them to make larger returns as the price fluctuates in the market. Some of these cannabis penny stocks became favorites of Reddit investors and are also heavily traded by retail traders using the Robinhood Markets, Inc. (NASDAQ:HOOD) and WeBull platforms.
Investing In Penny Stocks The Risk And Rewards In 2021
For investors, it’s always important to do your due diligence on a company before investing. Researching a company's financials and following how the stock performs in the market can help you achieve the best returns on your investments. With pot penny stocks it’s important to keep a close eye on the market because things sometimes move rather quickly. To close out September the cannabis sector is seeing an uptrend in trading for most cannabis stocks.
With months of declines since February highs, this could be a good time to find top marijuana penny stocks for your list before October. So far there are some cannabis stocks trading under $1 that could produce some gains as the cannabis sector improves in the market. In 2021 these marijuana penny stocks rallied in Q1 and reached some substantial upside for investors to profit off. As things begin to heat up again in the cannabis sector let's look at 2 top marijuana penny stocks for your list right now.
Best Marijuana Penny Stocks To Watch Before October
Sundial Growers Inc.
Known as a meme stock Sundial Growers Inc. engages in the production and marketing of cannabis products for the adult-use market in Canada. Primarily, the company manufactures and distributes inhalable products, such as flower, pre-rolls, and vapes. In September Sundial announced it launched the first Canadian Caviar cone under the Top Leaf brand. Specifically, the Forbidden Lemon Caviar Cones will be the first caviar cone product to hit the Canadian market. To highlight, this launch reinforces Sundial’s focused innovation pipeline around premium inhalable in the Canadian cannabis market.
Sundial reported its Q2 2021 financials with net revenue for the cannabis segment of $9.2 million. Additionally, with the company's investment fee revenue Sundial made $5.7 million and $3.7 million in profit from equity investments. In total the company saw net revenue of $18.6 million in Q2 2021. As a result, the company produced gross cannabis revenue of $12.7 million an increase of 8% sequentially. Also, in Q2 2021 Sundial sustained a net loss of $52.3 million and an adjusted EBITDA loss of $0.2 million.
SNDL stock is trading at $0.7149 on September 27th down 12.60% in the last month. Currently, the stock has a 52-week price range of $0.1380-$3.96 and is up 42.13% year to date. According to analysts at CNN Business SNDL stock has a 12month median forecast price target of $0.74 per share. In essence, this represents a gain of 2.93% from its current trading price. But with the passing of US cannabis legalization SNDL stock could be one of the top cannabis stocks to add to your list before October.
Fire & Flower Holdings Corp.
In Canada, Fire & Flower Holdings Corp. is a leading adult-use cannabis retailer with more than 85 corporate-owned stores in its network. At the present time, the company's wholly-owned technology development subsidiary, Hifyre Inc., is advancing its retail operations model while providing additional independent high-margin revenue streams for the company. Recently, Fire & Flower entered the U.S. cannabis market through a strategic licensing partnership with American Acres. Primarily, this licensing partnership and acquisition option with American Acres gives Fire & Flower entry into the California, Arizona, and Nevada cannabis markets. In addition, Fire & Flower subsidiary Hifyre entered into a strategic agreement with leading U.S. analytics company BDSA.
In its latest earnings, the company delivered fiscal first-quarter 2021 revenue of $44.1 million up 91% year over year. Marking, Fire & Flowers fourth consecutive quarter of positive adjusted EBITDA with $2.3 million. To highlight, the company's Hifyre digital retail platform generated $2.8 million in Fiscal Q1 an increase of 252% year over year. Fire & Flower sustained a net loss of $61.6 million in the first quarter. Also, the company announced a strategic supply agreement to expand its Humbles portfolio to Fire and Flower customers online and in-store throughout North America. Fire Flower officially entered the California market as American Acres changed its name to Fire Flower US Holdings.
FFLWF stock is trading at $0.7067 on September 27th down 3.27% in the last month of trading. The stock has a 52-week price range of $0.60-$1.20 and is up1.47% year to date. According to analysts at Tip Ranks FFLWF stock has a 12-month average forecast price target of $1.47 per share. In this case, this represents an upside of 108.01% from its current trading price. As we head into October FFLWF stock could be a top marijuana stock to watch under $1 right now.
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