In 2021, the federal government will legalize marijuana, and some analysts are predicting that the stocks involved will see spectacular gains. According to Arcview Market Research, the market will grow from $8 billion in 2018 to $47 billion by 2021. If that proves to be true, the best companies in cannabis will be in for a gigantic payday. Beyond the expected growth, investors will also benefit from legalization, since the stocks will be available on the open market. In addition to the expected upsides, two analysts contributed to the report.
With the US Medicinal and Adult-Use Cannabis, we see a lot of companies who are trying to make money off the trend, but how do you identify the ones that will see gains in 2021? We asked two analysts from Canaccord Genuity (CG) and Cowen & Co (CO) to predict who they think will be the leaders in the industry in the next 5 years. Both analysts were asked to pick stocks that they think will be able to retain their value, increase their share price, and see gains through 2021.
The marijuana industry has been on a massive growth tear over the last few years, and it’s showing no signs of slowing down. As we approach 2020, many of the biggest companies in the industry are set to release exciting products that will likely put a huge dent in the legal cannabis industry in the coming years.. Read more about best marijuanas stocks 2021 reddit and let us know what you think.
The best values in the grass industry in the third quarter of 2021
Right now, many investors are wondering if it is still possible to invest in the best marijuana stocks in 2021? The cannabis sector was currently in a downward trend for several months, until it began to turn around in June. Today, in early July, the U.S. cannabis market is in the spotlight and it seems much of the world is waiting for federal cannabis reform in 2021.
Currently, many lawmakers seem to be pushing for cannabis reform and legalization at the federal level in one form or another by 2021. This could further increase the pace at which large U.S. cannabis companies increase their market share. So far in 2021, U.S. cannabis companies have posted very strong profits, confirming their superiority over their Canadian counterparts. In the first quarter, many leading marijuana companies saw significant revenue growth, but this did not translate into an increase in the U.S. marijuana stock market.
Instead, U.S. cannabis stocks appear to be consolidating further at current trading levels. June marked the beginning of what could be the start of a modest rise for the best marijuana values right now. Major cannabis stocks hit their 2021 lows in the second quarter. These lower levels may now be better entry points for new investors.
Invest in the best cannabis stocks in 2021
Many analysts are now predicting further increases for large cannabis stocks from these levels. It is important that investors always do their due diligence before making an investment. This includes assessing the financial performance of a company and tracking the performance of its shares in the market. Since the cannabis sector is known for its volatility, this will help investors determine the best entry point for profit taking. With all this in mind, now is a good time to find the best US cannabis stocks to invest in during the summer and second half of the year.
Read more] Marijuana now legal in New Mexico after new law takes effect
With that in mind, let’s take a closer look at some of the leading US companies with future potential. In the US, these companies grew rapidly through mergers and acquisitions and performed strongly in 2021. Another reason to add these stocks to your list is to increase your earnings expectations for 2021. As we enter the third quarter of 2021, these could be the best marijuana stocks to buy in 2021.
Top marijuana stocks to keep an eye on in 2021
- Trulieve Cannabis Corp. (OTC:TCNNF)
- Green Thumb Industries Inc. (OTC:GTBIF)
Trulieve Cannabis Corp.
Trulieve Cannabis Corp. has captured the largest market share in Florida, accounting for more than 50 percent of legal cannabis sales in the state. The company recently completed an acquisition that makes it the largest cannabis company in the world. To clarify: Following the acquisition of Harvest Health & Recreation Inc. (OTC:HRVSF), the new company will have a consensus revenue expectation of $1.2 billion for 2021. It’s simple: With this agreement, Trulieve is now considered the largest cannabis company in the world. The new company will operate in 11 states with a total of 126 outlets serving the medical and recreational cannabis market.
The company currently has total adjusted EBITDA of $266 million and the consensus forecast for adjusted EBITDA for 2021 is $461 million, making it the most profitable cannabis company in the United States. Trulieve reports record revenue of $193.8 million and net income of $30.1 million for the first quarter of 2021. In June, the company opened its first pharmacy in Massachusetts, giving Trulieve a new market to develop. In early July, Trulieve announced it would celebrate Pride Month by donating $60,000 to four Florida nonprofits the company partners with to support the movement.
TCNNF shares traded at 1. In July at $38.55, up 18.60% year-on-year. TCNNF stock reached a new high of $53.73 in March and is up 198.57% in a year. TCNNF stock has a consensus price target of $70.97 per share, according to analysts at Market Beat. This represents an 89.3% increase over the current price. For this reason, TCNNF stock could be one of the best U.S. marijuana stocks to buy in 2021.
Green Thumb Industries Inc.
Green Thumb Industries Inc. is another leading consumer cannabis packaging company with a strong presence in the United States. GTI currently has 58 retail locations in 11 states and recently acquired Massachusetts-based cannabis operator Liberty Compassion Inc. This gives GTI licenses for 103 retail outlets for future expansion. Green Thumb announced figures for the first quarter of 2021 with total revenue of $194.4 million. By comparison, in the first quarter of 2020, the increase was 89.5%. For the first quarter of 2021, the company reported gross profit of $110.9 million, or 57% of revenue.
In fact, GTI reported its third consecutive quarter with positive GAAP net income of $10.4 million, or $0.05 per diluted share. GTI recently opened Cookies on the Las Vegas Strip in Nevada through a partnership with its house brand Cookies. In late June, GTI announced that it would release its second quarter 2021 results on the 11th. August after the stock market closes. Early in the third quarter, GTI announced the completion of its acquisition of Dharma Pharmaceuticals and its entry into the cannabis market in Virginia.
GTBIF shares are listed at 1. In July at $33.29, up 34.69% year-on-year. GTBIF stock hit a high of $39.11 in February and is up 230.08% in a year. According to analysts at Tip Ranks, GTBIF has a 12-month average share price of $46.59 per share. This would even mean a 39.95% increase over the current price level.The marijuana industry is booming, and while it could be an exciting time for investors, it comes with many challenges. With several states legalizing marijuana for recreational use, many investors are putting in the work to optimize their investments within the industry.. Read more about best stocks to invest in 2021 and let us know what you think.
best marijuanas stocks 2021 reddittop marijuanas penny stocks 2020list of cannabinoids stockscbd companies to invest inbest stocks to invest in 2021best stocks to buy now,People also search for,Privacy settings,How Search works,Sundial Growers,Cresco Labs,Canopy Growth Corporation,Jushi Holdings,Tilray,Cronos Group,See more,best marijuanas stocks 2021 reddit,top marijuanas penny stocks 2020,cbd stocks to watch 2021,cbd companies to invest in,best stocks to invest in 2021,best stocks to buy now,best hemp stocks,mary and juana stock