Do You Have These 3 Top Marijuana Stocks On Your Watchlist?
It has been an interesting year for top marijuana stocks as the pot industry displayed great resilience. Unsurprisingly, marijuana stocks have also witnessed their fair share of volatility because of all the madness in the stock market this year. First, there has been an increase in the usage of marijuana when lockdown measures were put in place as reflected from the quarterly reports from cannabis companies. Next, a Biden administration may be more friendly toward initiatives for legalizing pot.
This is because he advocates strongly for marijuana decriminalization across the U.S. and will likely take measures to achieve this. In recent weeks, the marijuana industry appears to be showing a lot of activity on the stock market today. Could this signal that the top pot stocks to watch are making a comeback?
Can These Top Cannabis Stocks Continue To Rally?
The hype around marijuana stocks is apparent as many top marijuana stocks like Canopy Growth Corp (CGC Stock Report) are rising. At the same time, the current wave of interest seems to be extending towards marijuana penny stocks like Sundial Growers (SNDL Stock Report) which are up by nearly 100% on Monday’s intraday trading. This plays in favor of analysts projecting explosive long-term growth for this budding industry. According to New Frontier Data, the total U.S. sales of legalized adult-use and medical cannabis will hit $26.3 billion by 2025. Moreover, these estimates do not account for all the tailwinds poised towards the marijuana industry in 2020 as it was published in 2018.
Considering these points, could it be a good time for investors to make their entry into the marijuana market? Here is a list of top marijuana stocks to consider if you are thinking of doing so.
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Best Marijuana Stocks To Watch This Week: Aphria Inc
Aphria (APHA Stock Report) has been seeing heavy trading over the past week. Notably, its share price has seen gains of over 30% over the past 5 trading sessions and was up more than 60% in November alone. Aphria is among the largest marijuana cultivators in Canada. The company focuses on its sustainable, state-of-the-art greenhouses and cultivation operations, processing and distribution facilities, and first-class laboratories. By and large, all these are shaping Aphria to be a global leader in fully integrated cannabis production.
The company’s most recent quarter is putting APHA stock on investors’ radar. The company reported a 16% year-over-year increase in revenue. Gross profit rose by 65% from a year ago. Essentially, more people were staying at home due to coronavirus lockdown measures, driving demand for Aphria’s products. Certainly, one key aspect of Aphria’s business model sets it apart from the competition. It is important to realize that Aphria is a product-oriented company. This is clear as it owns several medicinal and recreational cannabis brands. These range from luxury cannabis products to even vaporizers. What else could possibly be putting this top marijuana stock in the limelight in recent weeks?
On November 30, Aphria finalized its deal to acquire craft beer producer SweetWater Brewing. SweetWater Brewing is a U.S. based craft brewer which focuses on the cannabis lifestyle business via its flagship “420” brand. You can see how this synergizes with Aphria’s business. More importantly, it provides a means for the company to penetrate the U.S. marijuana industry. This could be done through the use of pre-established distribution channels via SweetWater Brewing. Would this make APHA stock worth adding to your watchlist? You be the judge.
Best Marijuana Stocks To Watch This Week: Aurora Cannabis Inc
The second pot stocks to watch on this list is Aurora (ACB Stock Report). Aurora is a Canadian licensed cannabis producer. The company has eight licensed production facilities, five sales licenses, and operations across 25 countries. Significantly, Aurora has a large repertoire of medical and consumer brand marijuana-based products. Its share prices saw the greatest gains among top pot stocks in the past 5 trading sessions, surging more than 62% as of Monday’s closing. Let us take a closer look at this big name in the marijuana industry.
Surprisingly, Aurora’s recent quarter fiscal released in November painted a different picture. The company reported an 8% decrease in revenue year-over-year and a 39% increase in production costs in the same period. Admittedly, this is because Aurora was restructuring its business. This involved worker restructuring, consolidating production and increasing its available stocks to get additional funds. The company announced that it met selling, general, and administrative expenses (SG&A) and capital asset cost reduction targets. Furthermore, it also mentioned ongoing plans for facility rationalization and building a commercial platform that will generate sustainable and profitable revenue growth. Investors may now be wondering if Aurora can leverage its existing assets to turn things around for the better.
Earlier last week, it announced a strategic supply agreement with Cantek Holdings. Cantek is one of the leading medical cannabis companies in Israel. The deal involves Aurora supplying at least 8000kg of bulk dried flowers to Cantek over two years. In turn, the product will be processed and co-branded under both brand names on the Israeli market. Could this expansion on the international front be enough to make ACB stock a top marijuana stock to consider?
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Best Marijuana Stocks To Watch This Week: Cronos Group Inc
Finally, we have Cronos (CRON Stock Report). Cronos is a global cannabinoid (CBD) company with production and distribution channels across five continents. The company has a rather impressive portfolio filled with brands. This includes a global health and wellness platform, two adult-use brands, and three hemp-derived CBD brands. CRON stock jumped nearly 5% on Monday’s intraday trading and is up more than 22% from the past 5 trading sessions.
From its most recent quarterly report, the company appears to be doing relatively well in comparison with its industry rivals. The company reported a 96% increase in revenue on a year-over-year basis. The increase in revenue was primarily driven by two key markets. In detail, these were the adult-use Canadian cannabis market and the Israeli medical cannabis market. Additionally, it also reported a 143% year-over-year rise in net revenue across all brands and products in the U.S. This could be a good sign as recent legislative shifts in the U.S. could see the nationwide decriminalization of marijuana. Ultimately this could mean a massive stream of new customers for the company.
The company had a productive third quarter with several key developments. Cronos Israel received several key certifications required for the cultivation, production, and marketing of dried flowers, pre-rolled products, and oils in Israel. Furthermore, NatuEra which is backed by Cronos successfully imported hemp-derived CBD extract to the U.S. for business development and R&D purposes. With these solid moves and a mighty socio-political tailwind, would you say that CRON stock is a top marijuana stock to watch now?
