Are These The Best Marijuana Stocks To Buy Right Now?
Marijuana stocks have had an amazing run in the stock market this past month. Many of these stocks are still on a post-election high after Joe Biden was declared the winner of the U.S. Presidential Elections in early November. Today, however, could bring top marijuana stocks to even greater highs. A United Nations commission has just voted to remove marijuana for medical use from a category of the world’s most dangerous drugs that include heroin. The vote would pave the way for marijuana research and medical use.
This historic vote was carried out after a recommendation from the World Health Organization (WHO) to remove cannabis and cannabis resin from the list of Schedule IV drugs. This vote could also have far-reaching implications for the global medical cannabis industry. For instance, it would help legalization efforts in several countries. This could fuel the growth for pot stocks in 2021 and beyond. Furthermore, the U.S. House of Representatives announced a scheduled vote today on the Marijuana Opportunity Reinvestment and Expungement Act. The bill, known as the MORE Act, would decriminalize marijuana on the federal level and make a few other changes.
Generally, you could see that the industry has a lot going on in the past month itself. Pot stocks like Curaleaf Holdings (CURLF Stock Report) and Aurora Cannabis (ACB Stock Report) are up by 11% and 101% respectively in the last month. This growth could only be the beginning for the industry that has had a rather turbulent 2020 so far. With that in mind, here is a list of the top 3 marijuana stocks that could bring investors huge gains over the next few months.
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Best Marijuana Stocks To Buy [Or Sell]: Village Farms International
Village Farm International (VFF Stock Report) has had an amazing year in the stock market. The company holds the title of one of the largest vertically integrated greenhouse growers in North America. Its wholly-owned subsidiary, Pure Sunfarms is one of the single largest cannabis growing operations in the world. The company’s stock has almost doubled in the past month alone and is traded at $10.46 as of 10:00 a.m. ET.
The company has benefited significantly from the U.S. Election. Village Farm had also announced its third-quarter results last month, much to investors’ delight. The company reported a 79% increase in revenue of $17 million in this quarter. It also reported a net income of $2.5 million, which is a 200% increase year-over-year. This is certainly good news for the company and is the 7th consecutive quarter of positive net income. This is also unsurprising for Village Farm as Pure Sunfarms is one of Canada’s top retail cannabis suppliers. The company supplies its cannabis products to over 70% of the Canadian market.
Village Farm is also set to take on the U.S. market as the move to legalize marijuana in the U.S. is put into motion. It plans to become a vertically integrated leader in the U.S. hemp-derived Cannabidiol (CBD) market. It has so far established a joint venture with Village Fields Hemp USA for multi-state outdoor hemp cultivation and CBD extraction. As the company has shown strong financial growth, will you consider having VFF stocks on your watchlist?
Best Marijuana Stocks To Buy [Or Sell]: Canopy Growth Corporation
Another major player in the marijuana industry is Canopy Growth Corporation (CGC Stock Report). Canopy Growth is the first cannabis company to be publicly traded in North America. The company plays a vital role in advancing the world’s perception of cannabis by focussing on research, product development, and innovative production capabilities. The company’s shares are up by over 40% since the start of November.
In the company’s latest quarter fiscal posted in November, the company has shown stellar financial results. Canopy Growth has indeed seen strong growth and market share gains in its Canadian recreational business. It saw its net revenue grew by 77% to $104 million. This is due to notable gains in both recreational and medical segments. The company also expanded its gross margins to 19%.
The company is accelerating growth in the U.S. market. It has scalable brands and has a strategy to bring its Tetrahydrocannabinol (THC) brands into the U.S. market through Multi-State Operator (MSO) licensing or hemp-derived CBD extensions. Canopy Growth has also been gaining rave reviews for its edibles, vapes, and cannabis-infused beverages. The company holds a market share of 54% in the Canadian cannabis beverage market. Furthermore, the company is bringing senior leadership to help penetrate the U.S. market. With so many exciting developments surrounding Canopy Growth, will you have CGC stock in your portfolio?
Best Marijuana Stocks To Buy [Or Sell]: Tilray
Tilray (TLRY Stock Report) is the last marijuana stock on this list. The company is a global leader in cannabis research, cultivation, processing, and distribution. Tilray is also a Good Manufacturing Practice (GMP) – certified medical cannabis producer to supply cannabis flower and extract products. It boasts cultivation and production facilities that are among the most advanced in the world. TLRY stocks were up by about 35% in November alone.
The company had just reported its third-quarter results in November. Tilray had posted a revenue of $51.4 million in its latest quarter. This figure is supported by Adult-Use and International Medicine sales that grew by 26% and 42% respectively. The company also saw its total cannabis revenue increase by 24% excluding the year-over-year impact related to bulk sales. Tilray has a cash balance of $155.2 million and access to another $209 million on an at-the-market offering. This will provide sufficient capital and access to manage operations and execute its plans well into 2021.
Construction of the company’s Portuguese cultivation facility is currently ongoing and will be completed by the end of the fourth quarter of 2020. In September, Tilray noted that Australian researchers have published results indicating that one of its GMP-produced products may reduce nausea and vomiting for cancer patients undergoing chemotherapy. This could benefit the company’s sales in the long run. With that in mind, will TLRY stock be a top marijuana stock to buy before 2021?