Best Cannabis Stocks To Watch During Current Market Volatility
To start off 2022 the best marijuana stocks to buy have seen significant drops in value. As the overall markets continue a downtrend top cannabis stocks have also experienced a significant downside to start the year. This is in addition to the cannabis sector declining in 2021 after reaching new highs in February of last year. Now heading into February 2022 pot stocks are setting new lows mostly due to the delays with US federal marijuana legalization.
Generally speaking, one area of the cannabis sector that has been heavily impacted by delays in the US is Canadian marijuana stocks. Because Canadian cannabis companies stand to gain a new market to grow in with US cannabis reform, they have suffered the largest drop in value. For the past several years many Canadian cannabis companies have established their entry into the US market. In general, some have done this with strategic acquisitions and others have established CBD sales in the US waiting for a change in US federal policy.
Because many investors and analysts expected to see the US establish federal cannabis reform in 2021 the delays impacted pot stocks severely. Although Canadian cannabis companies have experienced some growth in the Canadian market they have not performed as well as many leading US cannabis companies. But they have a few factors working in their favor in the stock market.
Finding The Best Pot Stocks For New Retail Investors On Robinhood And WeBull
For one because cannabis is still federally illegal US companies are unable to trade on major US stock exchanges. This has kept them from many new retail investors that use platforms like Robinhood Markets, Inc. (NASDAQ: HOOD) or WeBull to place trades. This has been an advantage for Canadian pot stocks that trade on the Nasdaq and are readily available to all investors.
One area that could offer short-term gains for investors is Canadian marijuana penny stocks. For those traders unfamiliar with penny stocks these are any stocks that trade under the $5 threshold. In general cannabis penny stocks are known for having significant volatility and are a higher-risk investment. Many active traders use day trading and swing trading techniques to produce gains with penny pot stocks. For this reason, let’s look at 4 of the best Canadian marijuana penny stocks to add to your list this week.
Canadian Marijuana Stocks To Watch In January
- Aurora Cannabis Inc. (NASDAQ: ACB)
- OrganiGram Holdings Inc. (NASDAQ: OGI)
- HEXO Corp. (NASDAQ: HEXO)
- Sundial Growers Inc. (NASDAQ: SNDL)
Aurora Cannabis Inc.
Aurora Cannabis Inc. is a Canadian company that cultivates and sells medicinal marijuana across the world. The company recently announced its entry into the US cannabis sector with the purchase of Reliva, a CBD-producing company in the United States. Aurora has also expanded its San Rafael ’71 range with three additional cultivars. On the international front, the business sent an $8 million cannabis shipment to Israel. The company’s balance sheet is being rebuilt, and the first shipment to the French medicinal cannabis pilot program has been accomplished.
Aurora reported total cannabis net sales of $60.1 million in the first quarter of the fiscal year 2022, up from $54.8 million in the fourth quarter of fiscal year 21. The firm now has an $11.5 million Adjusted EBITDA deficit. Aurora is the world’s largest Canadian limited partnership in the medicinal cannabis market, and it claims to be on track with its restructuring strategy.
ACB stock is trading at $4.92 on January 19th down 3.62% for the trading day going into the close. Currently, the stock has a 52-week price range of $4.90-$18.98 down 27.41% in the past six months. According to analysts at CNN Business, ACB stock has a consensus price target of $6.36 per share. This would be an upside of 29.50% from its last trading price of $4.92.
OrganiGram Holdings Inc.
In Canada, OrganiGram Holdings Inc. is a well-known legal cannabis and cannabis-based product manufacturer. The business is recognized for generating high-quality, indoor-grown marijuana for medical and recreational purposes. Organigram is strengthening its foreign business partnerships to boost its position in the global cannabis sector. The company is aggressively expanding its wholesale cannabis delivery service as well as its online sales. SHRED’ems Gummies is a high-quality addition to Organigram’s SHRED product line. Edison JOLTS are also Canada’s first flavored THC ingestible extracts with a high concentration of THC.
Since July 2020, OrganiGram has produced 84 new SKUs to refresh its product portfolio. In Q3, two new high-potency strains were released under the Edison brand, which has a greater profit margin. On January 11th the company released its first-quarter fiscal 2022 results with $30.4 million in net revenue. This revenue represents a record for Organigram and gives the company the #4 share position among Canadian LPs. In December the company made an additional investment in Hyasynth Biologicals a leading cannabinoid biosynthesis company bringing its total investment into the company $7.5 million.
OGI stock is trading on January 19th at $1.545 down 6.63% for the past five trading days. The stock has a 52-week price range of $1.55-$6.45 and is down 38.49% in the last six months. According to analysts at Tip Ranks OGI stock has a 12-month average price target of $2.40 per share. In this case, this would represent an upside of 54.84% from its last trading price of $1.54.
HEXO Corp. is a Canadian company that produces award-winning cannabis products. The company currently occupies a strong position in a global market, with a diverse brand portfolio that caters to the recreational market in Canada. HEXO principally distributes medical supplies in Canada, Israel, and Malta. Furthermore, the company has been extending its presence in the cannabis market in the United States. Truss CBD USA, a joint venture between HEXO and Molson Coors, serves the Colorado market. The business recently acquired Zenabis Global Inc., a licensed cultivator of recreational and medical-grade cannabis in Canada. Both purchases will aid HEXO’s future expansion in Canada, Europe, and the United States.
In December, HEXO launched a new business plan and claimed total revenues of $50.2 million for the first quarter of 2022. HEXO also purchased its first manufacturing plant in the United States through a completely owned company in the country. The 50,000-square-foot facility in Fort Collins, Colorado, will produce high-quality Powered by HEXO products for distribution across the US.
On January 19th, HEXO is trading at $0.57, down 5.58 percent in the previous five trading days. The stock is presently trading in a 52-week price range of $0.5703-$11.04, a drop of 86.63 percent in six months. According to CNN Business experts, HEXO stock has a 12-month average price objective of $0.81 per share. This would be a 41.91 percent increase from the last transaction price of $0.57. HEXO stock also had a big spike in options trading in December, particularly the January 21st $1.00 calls, which might indicate potential implied volatility.
Sundial Growers Inc.
At the present time, Sundial Growers Inc. is a cannabis company based in Canada that grows and sells adult-use cannabis. Currently, the company manufactures and distributes inhalable products like flowers, pre-rolls, and vapes. Sundial has just released the first Canadian Caviar cone from the Top Leaf brand. According to the company, the Forbidden Lemon Caviar Cones will be the first caviar cone product to hit the Canadian market. This launch adds to Sundial’s concentrated innovation pipeline in the Canadian cannabis sector for premium inhalables. Sundial announced its intention to purchase Alcanna, Canada’s largest private liquor retailer, in October.
Sundial announced $11.3 million in net profits and $10.5 million in Adjusted EBITDA for the third quarter of 2021 in November. The cannabis segment generated $14.4 million in net sales in the third quarter of 2021. Gross margins for the cannabis divisions were $1.8 million, compared to a loss of $19.5 million in Q3 2020. Additionally, in Q3 2021, the company earned $3.3 million in investment and fee revenue, $6.0 million in realized gains on securities, and $9.9 million in profit from equity account investments.
SNDL stock is trading at $0.5210 on January 19th down 4.355%% for the day. The stock has a 52-week price range of $0.495-$3.96 and is up 22.13% in the past year. According to analysts at Tip Ranks SNDL stock has a 12-month average price target of $0.85 per share. In this case, this would represent an upside of 64.13% from its last trading price of $0.52.