Best Marijuana Stocks To Watch Heading Into December
Are you looking for the best marijuana stocks to invest in while cannabis stocks are down? November has given way to the lowest market value top pot stocks have seen in 2021. The main reason for this is the delays the federal government is having regarding federal cannabis reform. Since the presidential election in 2020 investors began pouring into the cannabis sector with the belief federal marijuana legalization would happen early in 2021.
Now as the year winds down the best US marijuana stocks have been impacted severely by the government’s lack of urgency on the matter. Although many top-tier cannabis companies continue to report strong earnings in this latest round of financials. Because of the delays in Congress, it has not translated into gains in the market. Instead after peaking in February of 2021 the best pot stocks to buy have declined every month reaching pre-election trading levels currently.
As marijuana stocks continue to show downside this could be a good opportunity for investors to establish positions in the cannabis sector at lower values. From current trading levels, many analysts are forecasting significant upside for the best cannabis stocks to invest in. With a current bipartisan push to establish cannabis reform, it seems like a matter of time before we see the end of federal cannabis prohibition.
Finding The Best Investments In Top Pot Stocks In 2021
Before investing in top marijuana stocks there are a few important factors to consider. For one the cannabis sector is known for having significant market volatility. This volatility has been increased in 2021 by the overall market swings and the lack of change on the federal level. Another important element in making good trading decisions is finding the best companies. Researching a company’s finances and studying how a stock behaves in the market can help you become a successful trader. Learning how to use technical analysis and trading tools can help you minimize your losses and increase your winning trades.
In 2021 although we have seen delays for cannabis reform on the federal level across the US many new states are implementing new medical and recreational cannabis markets. Because of this many leading cannabis companies are experiencing significant growth and expansion at the present time. Let’s look at 2 top US marijuana stocks for your watchlist for December 2021.
Best Cannabis Stocks To Watch This Week
Cresco Labs Inc.
Cresco Labs Inc is one of the largest vertically integrated cannabis companies in the US market. Presently, the company is considered the number one wholesaler of branded cannabis products in the US. In fact, according to a recent BDSA report, Cresco is the leading cannabis brand in Illinois and Pennsylvania. At the present time, Cresco operates 43 retail locations across 11 states with 20 production facilities and 47 retail licenses. Recently, the company opened its fourth Sunnyside dispensary in Pennsylvania as the company expands into other key markets. In addition, the company announced a portfolio expansion of its Good News brand with more selections in the edibles and vaping areas. In October the company is shifting to owned brand distribution in California to increase profitability and reduce third-party distribution.
Cresco announced the acquisition of Blair Wellness Center a Maryland dispensary. On November 25th the company announced it completed the acquisition of three high-performance Pennsylvania dispensaries. In November the company delivered third-quarter 2021 revenue of $215.5 million up 40.6% year over year. As a result, Cresco produced a gross profit of $116.7 million, or 54.2% of revenue. In addition, Cresco has an Adjusted EBITDA of $56.4 million an increase of 24% quarter over quarter. The company reaffirmed its previous guidance with gross profit margins of more than 50% for the rest of 2021 and Q4 revenue between $235-$245 million. Another important factor that left Cresco with a loss is an impairment charge of $291 million related to changes in intangible assets dealing with the company shift in strategy for its California operations.
CRLBF Stock Performance
CRLBF stock is trading on November 30th at $8.20is down 4.74% in the past five trading days. Currently, the stock has a 52-week price range of $7.48-$17.49 down 14.85% year to date. According to analysts at Tip Ranks CRLBF stock has a 12-month median price target of $18.64 per share. This analysis represents an upside of 127.32% from its last trading price.
TerrAscend cultivates and sells medical and adult-use cannabis in Canada and the United States. In general, the company is a leading US cannabis operator with a footprint in Pennsylvania, New Jersey, and California. TerrAscend has licensed cultivation and processing facilities in Maryland and Canada. In specific, the company produces and distributes hemp and cannabis-derived products and manufactures artisan edibles for cannabis consumers. Recently, TerrAscend launched a portfolio of Kind Tree Branded products in Maryland. The Maryland facility was already producing 15 strains of flower under the Kind Tree brand and now will add vapes and half gran pre-rolls to the lineup.
In November the company reported its third-quarter 2021 results with net sales of $49.1 million up 29% year over year but down 16% sequentially. TerrAscend has an adjusted gross profit margin of 46% compared to 59% in Q3 2020. Also important, TerrAscend signed an agreement to be the sole cultivator and manufacturer of COOKIES branded products in New Jersey and bring COOKIES to the three dispensaries it has in the state subject to regulatory approval. In September the company received Michigan prequalification approval for the acquisition of Gage Growth Corp. (OTC: GAEGF).
TRSSF Stock Performance
TRSSF stock is trading at $6.00 on November 30th down 46.56% in the past six months. At the present time, the stock has a 52-week price range of $4.89-$16.25 and is down 38.71% year to date. According to analysts at CNN Business TRSSF stock has a 12-month median price target of $10.16 per share. This median estimate would represent an upside of 65% from its last trading price of $6.00.