Investing In Marijuana Stocks Right Now
Are you looking for the best way to invest in marijuana stocks in May? At the current time, Canadian cannabis stocks could be trading at levels that may produce gains for investors. In 2021 Canadian marijuana stocks have seen the most market volatility. This is partly due to more investors anticipating US cannabis reform this year. Although there is a strong possibility some form of cannabis reform will be established in 2021 it could be some time before Canada is given entry into the American market.
But this has not stopped leading Canadian cannabis companies from formulating their strategies into the US market. In general, most have already established a plan to generate their market share in the growing industry. Additionally, Canadian cannabis companies have also established medical cannabis exports to other parts of the world. Realistically speaking Canadian cannabis companies are well-positioned to grow with the cannabis market globally.
Currently, most top Canadian pot stocks have been consolidating and trading lower in the market for over 2 months. In perspective, the Canadian cannabis sector rallied for the first 2 months of 2021 establishing new highs in the market in February. Since this time a sharp decline in the Canadian sector has left most pot stocks trading near 2020 trading levels. In essence, this could be an opportunity for investors to find top marijuana stocks to invest in at lower price points.
Canadian Cannabis Industry
In the Canadian cannabis market, there are currently new mergers and acquisitions that are shaping the industry. With new industry leaders forming in the market cannabis investors are looking for the best pot stocks to buy this week in May. Finding the best investments for your portfolio requires some due diligence in leading cannabis companies. Understanding a company’s financial standing and watching how the stock performs in the market are important factors in making a good investment.
With the intention of researching some options in the Canadian cannabis industry, we can look deeper into some leading companies. For the next five years, these marijuana stocks may possibly deliver short-term and long-term gains for cannabis investors. The recent drop in market value could give these cannabis stocks more potential in May. For this reason, let’s take a look at 2 Canadian marijuana stocks to watch right now.
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Marijuana Stocks To Watch:
With the Tilray, Inc. and Aphria Inc. (NASDAQ: APHA) merger complete the companies will run under the Tilray banner led by Aphria’s management team. Recently Tilray delivered 2020 full fiscal year revenue of $210.5 million increasing by 26% versus 2019. With the deal closed investors with APHA stock shares held as of April 30th will receive 0.8381 of TLRY stock. Tilray is now a global cannabis leader with a market cap of $8.2 billion. Earlier this year the company became one of the first cannabis companies to establish shipments of medical cannabis products to Spain.
At the present time, TLRY stock is trading at $15.95 down 6.29% in the first half-hour of trading on May 4th. Currently TLRY stock is up 93.22% year to date with a high of $17.01 in February. According to 10 analysts at CNN Business TLRY stock has a 12-month median price target of $24.00 per share. In general, this would be a 50.38% increase from current levels. As this newly formed cannabis company begins to expand in the market TLRY stock could be a top Canadian cannabis stock to invest in this week.
Cronos Group Inc.
Cronos Group Inc. is a global cannabis company with production and distribution across the world. Currently, with a portfolio of cannabis brands that has successfully established its presence in the Canadian cannabis market, the company has been building its cannabis export business as well. In its most recent financials, Cronos released Q4 and full-year 2020 financials with net revenue in Q4 of $17 million. Additionally, full-year 2020 net revenue was $46.7 million, but the company saw a gross loss of $25.8 million. Cronos attributes the loss partly to a decline in cannabis wholesale sales.
On May 7th Cronos is expected to release its 2021 first-quarter earnings where analysts are predicting a decline in earnings for the company. Although they expect higher revenue analysts expect the company to deliver a year over year decline. But If key numbers look good in the report it could be a catalyst for CRON stock next week.
CRON stock is up 12.82% year to date with a high of $15.83 in February. In the last 30 days, the stock is down 16.79% and is trading at $7.70 on May 4thin the first hour of the day. According to analysts at Tip Ranks CRON stock has a 12-month average price target of $9.32 per share. In essence, this would be a 20.88% increase from current levels. With this in mind, CRON stock could be a top Canadian marijuana stock for your May watchlist.