Top Canadian Cannabis Stocks In 2021
Marijuana stocks could be setting up for a rebound in the coming months. In May there seems to be more momentum for leading cannabis stocks. But one sector has not recovered in the same fashion. Currently, Canadian marijuana stocks have seen the most market volatility in 2021. At the top of the year, the best Canadian cannabis stocks rallied to reach new highs in February. Since that time leading Canadian pot stocks have also experienced the most declines.
To close out this month there could be a reintroduction of the MORE Act in the house with new revisions this week. In reality, this could stimulate the Canadian part of the market if the bill begins to catch traction. In Canada, cannabis sales increased by 65% in March to $298 million. Initially bouncing back from a drop in sales for January and February. In the first quarter, Canadian cannabis sales have been affected by the COVID lockdowns.
On the other hand, increases in the number of retail dispensaries, as well as falling flower prices, are currently boosting sales in the sector. Although there is some sales growth in March it’s currently the slowest growth year over year since adult-use sales started. But if the Canadian cannabis companies begin to enter the US market, they could show significant revenue growth with the addition of the new market.
Canadian Cannabis Companies And Cannabis Industry Market Growth
Another part of the cannabis industry that Canadian cannabis companies have a large presence in is the global medicinal market. Overseas currently leading Canadian companies to have a stronghold on exports to Europe and other parts of the world. In general, the next few months could have a huge impact on how the cannabis industry moves forward in 2021. If legislation is passed in the US that can allow Canadian companies to enter the American cannabis market, they could see significant growth.
Primarily finding the right Canadian marijuana stocks to buy requires some research on behalf of the investor. In general, researching a company’s financials and getting to know how a stock performs in the market are key factors in making a good investment. With this in mind, we can take a closer look at 2 marijuana stocks in the Canadian sector that could rebound in the market.
Marijuana Stocks To Watch
Canopy Growth Corporation
In 2021 Canadian cannabis companies have been establishing entry into the US market. Currently, Canopy Growth has established several ways to capitalize off the US cannabis industry once it’s allowed to enter the market. For starters, Canopy has established a partnership and possible acquisition with Acreage Holdings, Inc. (OTC: ACRHF) a leading US MSO. Additionally, the company has also established a partnership and US distribution agreement with Southern Glazers Wine & Spirits for a CBD beverage portfolio.
Specifically, this launch will help market and brand the company’s new Quatreau CBD-infused beverages. Strengthening its presence in Canada Canopy acquired a company to add to its brand portfolio as one of Canada’s premium cannabis brands The Supreme Cannabis Company, Inc. (OTC: SPRWF). Next month Canopy is expected to release its fourth-quarter fiscal 2021 results on June 1st before the open.
CGC stock is trading at $24.39 up 7.54% in the first hour on May 25th. At the present time, CGC stock is down 17.26% in the last 30 days. Actually, year to date CGC stock is down 7.95% and has been consolidating in this area for half of May. In February CGC stock reached a high of $56.50 and could be at better levels currently to start a position in May. According to CNN Business CGC stock has a 12-month median price target of $31.27 per share. In essence, this would represent an increase of 28.30% from current levels. For this reason, CGC stock could be a top Canadian marijuana stock to buy in the last week of May.
Aurora Cannabis Inc.
One of the original global leaders in the cannabis industry is Aurora Cannabis Inc. At the present time, the company is established in both the medicinal and recreational consumer markets. On May 13th Aurora announced its fiscal 2021 third-quarter results. Specifically, total cannabis net revenue was $58.4 million a 17% decline sequentially. In the last 4 earnings, Aurora has only beaten estimates once.
The company continues to attempt to control its substantial losses and there are developments that could help the company in the future. It’s possible that with significant growth on the global scale Aurora could begin to show some better financials. Today on May 25th ACB stock starts trading on the NASDAQ under the ACB ticker symbol. Although the transaction does not have any impact on Aurora shareholders it does align the stock with its competitors.
ACB stock is trading at $8.05 up 5.23% on May 25th down 8.42% year to date. As it stands ACB stock is down 8.86% in the last month and could be at levels to watch for an entry point. According to analysts at Tip Ranks, ACB stock has a 12-month average price target of $7.00 per share. This would be a decline of 13.10% from current trading levels. Currently ACB stock could be a pot stock to watch for a better entry point from current levels. In the future ACB stock could bounce back to sometime in 2021.