Top Marijuana Stocks As They Head Into August
After 2 days of gains, most top marijuana stocks are trading lower as investors concerned over a jump in jobless numbers causes the cannabis sector to lose steam. In the US the cannabis industry has been growing at a rapid pace across the country. In 2021 new states like New Jersey, New York, New Mexico, and Virginia have all approved bills to legalize cannabis for recreational use.
On the federal level, Senate Majority Leader Chuck Schumer released a draft of the Cannabis Administration and Opportunity Act to garner support from more lawmakers and stakeholders. As the cannabis industry expands leading US cannabis companies are seeing an increase in revenue growth delivering strong first-quarter earnings for 2021. Now with second-quarter earnings next month for most top US cannabis companies we could see some continued momentum with solid financials.
For the most part, there are a few possible catalysts for top marijuana stocks right now. For investors, this could be a good opportunity to find top marijuana stocks at lower stock prices in the market. Currently, many analysts are predicting significant upside from the cannabis sector in 2021. Some analysts are saying the cannabis market will continue to be bullish regardless of federal legalization this year.
Investing In Pot Stocks In 2021
For new investors looking for top cannabis stocks, it’s important to do your due diligence before investing. Ultimately researching a company's financial status and observing how the stock performs in the market can help you establish the best possible positions for your investments.
Because most cannabis stocks are known for market volatility choosing the right entry point can have a tremendous effect on your returns. Because of the volatility in the cannabis sector many investors prefer using short-term trading methods when they trade pot stocks. As it stands more investors use swing trading and day trading techniques on top marijuana stocks in 2021.
Although more investors are choosing short-term positions in the cannabis sector that does not mean there are no long-term gains for shareholders. In the next five years, the cannabis market is predicted to more than double in revenue. This would mean long-term growth for some of the leading cannabis companies. With this in mind, we can take a closer look at some top marijuana stocks for your watchlist before August.
Top US Marijuana Stocks To Watch
Ayr Wellness Inc.
Recently, Ayr Wellness Inc. became the fourth largest cannabis company in the Florida cannabis market. The company has been expanding its presence through acquisitions in other key markets across the US. At the present time, Ayr has 38 operating dispensaries in Florida and a total of 52 stores nationwide. In July the company has entered the Illinois market with the acquisition of Herbal Remedies Dispensaries, LLC. In the company's first-quarter 2021 financials AYR saw revenue of $58.4 million up 74% year over year.
For the second quarter of 2021 Ayr provided a revenue guidance estimate of $90 million up 218% year over year. The company reiterated its guidance for 2022 with revenue of approximately $725 million. On July 15th Ayr received a provisional license to sell adult-use cannabis at greater Boston dispensaries in Massachusetts. Ayr has also agreed to acquire Tahoe Hydro an award-winning cultivator and high-quality cannabis flower produce in Nevada. The company is expected to release second-quarter 2021 financials on Tuesday, August 17th before the open.
AYRWF stock is trading at $29.02 up 22.04% year to date. In February AYRWF stock reached a 52-week high of $37.50 and has gained 258.27% in its 1-year performance. According to analysts at Market Beat AYRWF stock has a consensus price target of $57.70 per share. This forecast would represent an increase of 98.8% from its current trading price of 29.02. For this reason, AYRWF stock could be one of the top US marijuana stocks to add to your watchlist before August.
Verano Holdings Corp.
Verano Holdings Corp. is a leading, multi-state operator in the U.S. providing access to regulated cannabis products across the country. Primarily, the company produces a comprehensive suite of premium, innovative cannabis products sold under its portfolio of consumer brands. Presently, the company's portfolio encompasses 14 U.S. States, with active operations in 11. As it stands, Verano has 78 operational dispensaries, and 10 cultivation and processing facilities. Verano operates dispensaries under retail brands Zen Leaf and MUV that deliver a superior cannabis shopping experience in both medical and adult-use markets.
In July Verano announce it would deliver its second-quarter 2021 financials on August 10th before the open. In its first-quarter 2021 report, Verano delivered revenue of $143 million up 117% from the prior year. As a result, 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. In July the company has maximized its Ohio footprint with the close of the acquisitions of Dayton Dispensaries, and Mad River Remedies.
VRNOF stock is trading at $15.00 and has declined 12.55% in the last 30 days. In February VRNOF stock reached a high of $28.00 and has dropped 6.28% in the past five days. According to analysts at Tip Ranks VRNOF stock has a 12-month average price target of $30.08 per share. This forecast represents an upside of 100.60% from its current trading price of $15.00. With this in mind, VRNOF stock could be one of the best cannabis stocks to add to your list right now.
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