In July top marijuana stocks have seen extreme market volatility as the month progressed. Now going into August many leading cannabis companies are expected to release earnings which could be a potential catalyst for the cannabis sector. Because of recent declines many top cannabis stocks to buy are trading near their lowest price points in 2021. Another factor that could boost the cannabis market soon is federal cannabis legalization. Earlier this month Chuck Schumer released a draft of the Cannabis Administration and Opportunity Act to see what issues lawmakers and stakeholders have with the proposed draft.
Although the federal government has not slowed down the growth of the cannabis industry. Being federally legal will help the marijuana market in many ways. For one many leading US cannabis companies are trading on the OTC markets because vertically integrated cannabis companies are not allowed to trade on any major US index. Currently, this is causing these top cannabis stocks to miss one of the fastest-growing pools of retail investors on popular trading apps like Robinhood and Webull. Some of these investors are buying Canadian marijuana stocks to gain exposure to the industry.
Also, right now most cannabis companies do business on a cash basis because they are unable to have regular banking due to the federal policies on the cannabis industry. In addition, Canadian cannabis companies are still unable to do business in the US cannabis market. For the most part, Canadian cannabis companies have been strategically planning their entry into the American cannabis market once the government reschedules cannabis.Building Your List Of Marijuana Stocks In 2021
For investors looking to invest in cannabis stocks in 2021, there could be a significant upside from current stock prices. This week the cannabis sector experienced a significant pullback that’s left top marijuana stocks like TerrAscend Corp. (OTC:TRSSF) down 8.47% in the last five trading days. But starting next month cannabis investors may see some upward momentum with strong revenue growth in this round of financials. In 2021 top marijuana stocks have seen their share of volatility.
This makes it important for investors to do their research on leading cannabis companies before investing. Looking into a company’s financial health and watching how the stock moves in the market can help you achieve the best results from your investments. With this in mind, let’s take a closer look at 2 top marijuana stocks to addbest to your watchlist before August.Marijuana Stocks To WatchPlanet 13 Holdings Inc.
In June Planet 13 opened its Orange County superstore its second-largest dispensary and currently the largest dispensary in California. The company is a cannabis company based in Nevada, with award-winning cultivation, production, and dispensary operations on the Las Vegas strip. In Las Vegas Planet 13 is famous for its larger-than-life Superstore dispensary located in a 112,000 square foot building. Currently, Planet 13’s two superstore dispensaries are said to be the largest worldwide. Besides the Superstore model, the company’s smaller model the Medezin store embodies the Superstore in a compact form.
In its first-quarter 2021 financials, Planet 13 saw revenue of $23.8 million. The company saw a Q1 2021 EBITDA of $5.2 million. As a result, gross profit before biological adjustments was $12.8 million. Also, In Q1 net income was $0.4 million compared to a net loss of $1.4 million in Q1 2020. In May the company set another sales record of $11.2 million with gross margins above 50%. This month the company expects to launch Tinley’s products a selection of cannabis-infused beverages. In its Orange County Superstore, Planet 13 has opened Moxie as its third store-in-store at the new location.
PLNHF stock closed on July 27th at $5.35 down 8.37% for the day. The stock has a 52-week range of $2.25-$8.67 and is down 4.36% year to date. According to analysts at Market Beat PLNHF stock has a consensus price target of $6.50 per share. This would represent an increase of 21.5% from its last trading price of $5.35. For this reason, PLNHF stock is cannabis stock to add to your watchlist before August.Harvest Health & Recreation Inc.
In July Harvest Health & Recreation Inc. is a vertically integrated cannabis company based in Arizona with one of the largest footprints in that state. In July Harvest opened its eleventh store in Florida and has 43 stores nationwide. Earlier this year the acquisition of Harvest Health by Trulieve Cannabis Corp. (OTC:TCNNF) will create the largest US cannabis company in the world once its complete. In the meantime, Harvest seems to be focusing on growth in Florida the state where Trulieve holds the largest market share.
In its first-quarter 2021 financials, Harvest saw revenue of $88.8 million up 101% year over year. Gross profit in the first quarter was $47.9 million versus $31.3 million in Q4 2020. The company had a net loss before non-controlling interest of $23 million. Additionally, Harvest had an adjusted EBITDA of $26.9 million in Q1 up 196% sequentially. The company is increasing its 2021 revenue guidance to $400 million and gross margins to be at or above 50%.
HRVSF stock closed on July 27th at $3.50 up 62.04% year to date. The stock has a 52-week range of $0.97-$4.50 and has declined by 18.22% in the past month. According to analysts at Tip Ranks HRVSF stock has a 12-month average price target of $5.36 per share. This would represent an upside of 53.14% from its last trading price of $3.50. With this in mind, HRVSF stock could be a top marijuana stock to add to your list this week.