More Investors Focusing On Marijuana Stocks
In 2021 top marijuana stocks have been an area of focus for Reddit and Robinhood investors. In the first quarter of this year, the best cannabis stocks to invest in rallied in January and early February before returning to lower trading levels in the market. Many top pot stocks are trading at levels that may produce returns for investors with some momentum in the market this year. So far in June, the cannabis sector is showing signs of rebounding in the market after 3 months of declines.
In the US, many cannabis companies are reporting strong earnings in the first quarter of 2021. Additionally, most have also given revenue guidance that predicts significant revenue growth for the year. One aspect that continues to increase cannabis demand is the state-level legalization that continues expanding the cannabis market. For example, in fairly new markets like Illinois, cannabis sales increased 97% to $150.6 million in May.
A similar sales trend can also be seen across other states in the US. Even well-established states like California have shown significant growth since the start of 2021. Actually, the next few years could be monumental for the cannabis industry in the US and around the world. For investors, there are many different ways to gain exposure to the growing cannabis industry.
Investing In Marijuana Penny Stocks In 2021
Penny marijuana stocks are known for being a high-risk investment but may also produce larger gains for traders. By definition, these are marijuana stocks trading under the $5 mark. Currently, more investors prefer trading these stocks using short-term trading methods, taking profit when the market presents it. Earlier in 2021, this part of the cannabis sector delivered large gains for investors. Now with the prospect of federal cannabis reform, top marijuana stocks may receive another catalyst in June.
To find the best options to trade, we can take a closer look at some of the best marijuana stocks to add to your watchlist this month. It's important as an investor to always do your research before investing. This means looking into a company's financials and study how the stock performs in the market. In general, doing your own due diligence can help you establish the best positions for your portfolio. With this in mind, let's take a look at 2 top marijuana penny stocks to invest in this week.
Marijuana Stocks To Watch
Greenlane Holdings, Inc.
One of the largest cannabis accessories companies, Greenlane Holdings, Inc., is a platform that sells accessories, child-resistant packaging, and specialty vaporization products in the US. Currently, with a customer base of more than 11,000 retail locations across the world, Greenlane recently made an acquisition that gave it a much larger company footprint. IN particular, Greenlane announced it has merged with KushCo Holdings, Inc. (OTC:KSHB) in an all-stock deal creating a new provider of cannabis ancillary products and packaging. The combined companies are projected to have a pro forma revenue of around $310 – $330 million in 2021.
In May, Greenlane released its first-quarter 2021 financials that show a strong start in 2021. For one, the company saw Greenlane Brand sales set back-to-back quarterly sales records and account for 25% of total revenue. In Q1 of 2021, Greenlane Brands saw sales of $8.5 million. In addition, total revenue increased to $34 million in Q1 2021 compared to $33.9 million in Q1 2020. Once the merger with KushCo is complete, Greenlane could be one of the largest ancillary cannabis companies working alongside the cannabis market.
GNLN stock closed on June 8th at $4.03, up 1.17% year to date. In February GNLN stock reached a high of $8.73 and has lost 2.89% in the past month. According to analysts at CNN business GNLN stock has a 12-month median price target of $7.50 per share. In essence, this would represent an increase of 85.64% from its last stock price. For this reason, GNLN stock is a top marijuana penny stock to watch right now.
4Front Ventures Corp.
One national multi-state operator and retailer with a market advantage in mass-produced, low-cost quality branded cannabis products is 4Front Ventures Corp. Currently, the company distributes a portfolio of over 25 cannabis brands. As. It stands, 4Front has dispensaries in Illinois, Massachusetts, California, Michigan, and Washington state. In May 4Front announced its first-quarter 2021 results with Pro Forma revenue of $31.4 million and an increase of 26% over Q4 2020. Additionally, the company delivered Q1 2021 Adjusted EBITDA of $5.9 million.
Also, 4Front reiterated its previous announcement of the full year 2021 guidance and estimated Systemwide Pro Forma Revenue of $170-180 million. The company also expects an Adjusted EBITDA of $40-$50 million for 2021. At present, the company is experiencing a strong sales performance exceeding internal projections. Currently, 4Front has a state-of-the0art 170,000 square foot manufacturing facility that is on track to be completed in Q2 of 2021.
FFNTF stock closed on June 8th at $1.36, up 49.45% year to date. In February, FFNTF stock reached a high of $1.98 and is up 1.87% in the past month. According to analysts at Wallet Investor, FFNTF stock has a 1-year forecast price target of $2.556 per share. This would represent an increase of 87.94% from current trading levels. With this in mind, FFNTF stock is a top cannabis penny stock to add to your watchlist this week.
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