3 Hot Cannabis Stocks To Watch This Week
As investors search for the best stocks to buy today in the stock market amidst concerns over inflation and meme stock news, marijuana stocks could be in focus. This would be because of the growing legislative and consumer sentiments around the calming substance. For the most part, the marijuana industry is a budding one. Evidently, U.S. congressional leaders recently reintroduced the Marijuana Opportunity Reinvestment and Expungement Act (MOREA) to decriminalize weed last week. While the White House is looking to “repair past harms of drug prohibition” investors and cannabis companies alike could stand to benefit. As a result, I can understand if investors are keen on buying some of the top marijuana stocks now.
Even now, tech giants such as Amazon (NASDAQ: AMZN) are weighing in on the subject. Yesterday, the company openly expressed support for the MOREA while also loosening drug testing policies for its workers. At the same time, the home delivery industry also appears to be in support of federal legalization as well. Namely, Uber (NYSE: UBER) CEO Dara Khosrowshahi recently expressed interest in jumping into the industry. According to Khosrowshahi, when federal laws are established, Uber is “absolutely going to take a look at it”. With companies eyeing the potentially lucrative U.S. recreational marijuana market, should investors be doing the same?
If anything, there is a clear market for cannabis now. Cannabinoid industry research firm BDSA estimates that the U.S. legal market alone generated over $17 billion in sales throughout 2020. Accordingly, with more legislative support in the long term, this figure could grow even more. In turn, cannabis-focused companies such as Curaleaf (OTCMKTS: CURLF) and Grow Generation (NASDAQ: GRWG) could continue to flourish. Having said all that, here are three to watch in the stock market today.
Top Marijuana Stocks To Watch In June 2021
- Canopy Growth Corporation (NASDAQ: CGC)
- Innovative Industrial Properties Inc. (NYSE: IIPR)
- Tilray Inc. (NASDAQ: TLRY)
Canopy Growth Corporation
Canopy is a leading cannabis and cannabinoid-based consumer product company. It leverages consumer insights and innovation to offer product varieties in high-quality dried flowers, oil, infused beverages, and edibles among others. The company also boasts award-winning brands like Tweed and Tokyo Smoke. Canopy has also entered into the health and wellness consumer space in key markets in Canada, U.S., and Europe.
Yesterday, the company reported its fourth-quarter and fiscal year 2021 financial results. Firstly, the company posted a 37% revenue growth in FY 2021 with strong double-digit growth across both cannabis and other consumer products businesses. Revenue for the quarter was $122.71 million. Specifically, the total net cannabis revenue for the quarter was $83.74 million. It also ended the year with $1.91 billion in cash and short-term investments. Canopy also states that it continues to build momentum across its key product lines in Canada. For instance, it launched a portfolio of THC beverages in the Canadian recreational cannabis market during FY 2021, capturing a 35% dollar share of the total beverage category during the full year.
It has also improved its supply chain execution and quality enhancements that have led it to commercial success. Impressively, it has maintained the #1 market share of the total flower category in Canada. Canopy has also recently announced acquisitions to further solidify its leadership position in the Canadian recreational market. For these reasons, will you consider buying CGC stock?
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Innovative Industrial Properties Inc.
Innovative is a cannabis company that targets medical-use cannabis facilities for acquisition. This would also include sale-leaseback transactions with tenants that are licensed growers under long-term, triple-net leases. Given how the industry could be poised for significant growth in the coming years, the company will focus on being a creative capital provider for the industry.
Late in May, the company announced that it had acquired a Massachusetts property that comprises approximately 70,000 square feet of industrial space. The property was purchased at a price of $3.1 million. Concurrently, the company has also entered into a long-term, triple-net lease at the property with Temescal Wellness for use as regulated cannabis cultivation and processing facility upon completion of development. Temescal is expected to complete additional tenant improvements for the property.
On May 5, 2021, the company also reported an impressive first quarter. In it, the company’s acquisitions and portfolio performance doubled total revenues to $42.9 million. It also reported a net income of approximately $25.6 million for the quarter or $1.05 per diluted share. Innovative also paid a quarterly dividend of $1.32 per share in April, representing a 32% increase year-over-year. It also ended the quarter with $661.4 million in cash and short-term investments. Given the impressive financials, will you consider IIPR stock a top cannabis stock to buy?
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Tilray Inc.
Following that, we will be looking at Tilray Inc. The Ontario-based cannabis giant is a leading name in the global marijuana industry now. Thanks to its recent merger with fellow cannabis company Aphria, it is now the world’s largest cannabis company by revenue.
Now, the Tilray brand consists of a massive portfolio consisting of cannabis lifestyle and wellness products. The likes of which include, medical, adult-use, hemp foods, and beverages. Because of all this, it would make sense that investors are eyeing TLRY stock amidst talks of nationwide cannabis decriminalization. With the company’s shares up by over 105% in the past six months, could it still have room to grow?
While this remains to be seen, we could look at Tilray’s recent quarter fiscal posted back in February for a clearer understanding of this. In it, the company raked in a total revenue of $210.5 million for the quarter, a sizeable 26% year-over-year increase. Moreover, Tilray also ended the quarter with $261.3 million in cash on hand. CEO Brendan Kennedy cites Tilray being able to generate meaningful revenue growth while streamlining operations as key factors for this performance. Considering that all this is before its massive merger with Aphria, would you consider TLRY stock worth investing in now?
