Are Canadian Marijuana Stocks A Buy Right Now? 2 To Watch While Pot Stocks Are Up Today
Could These Canadian Cannabis Stocks See Gains In August?
Top Cannabis Stocks In The Stock Market In August
Today most of the cannabis sector and top marijuana stocks are showing some upside to start August. As earnings continue in the month of August for most of the leading cannabis company’s analysts are expecting strong revenue growth for the quarter. One area more investors are focusing on is the Canadian cannabis sector in August. With some leading cannabis companies reporting revenue growth and better than expected earnings this month could be a turning point for top marijuana stocks to invest in.
Canadian pot stocks took a major hit in the market after reaching new highs in February. With some Canadian cannabis stocks reaching some of their lowest price points for 2021 in July this could be an opportunity for new investors. For new investors, the cannabis sector is known for having significant market volatility. This makes it a higher risk area of the market and investors should always do their due diligence before investing.
Although Canadian cannabis companies started 2021 with some disappointing earnings for the past few months Canadian cannabis sales have increased every month. In any case, we may see many leading cannabis company’s beating expectations as they deliver financials. Other Canadian companies have already announced their most recent earnings and investors seem to be impressed with the results.
Marijuana Legalization And The Cannabis Industry
In 2021 the US has taken significant steps in legalizing cannabis. Although the federal government has not yet ended the prohibition of cannabis federally the industry continues to strive and grow under current circumstances. But once the US does change federal policy on marijuana legalization and reform Canadian cannabis companies could make an entry into the US market once it’s legal. This would expand their market and could help them grow substantially for the next few years.
As the cannabis sector begins to see some upside these marijuana stocks could begin to produce returns for investors. Finding a good entry point is a key element to seeing gains from your investments. With this in mind, we can take a closer look at some leading Canadian cannabis stocks for your watchlist in August.
Top Canadian Marijuana Stocks To Watch
OrganiGram Holdings Inc.
In Canada, OrganiGram Holdings Inc. is one of the leading licensed producers of cannabis and cannabis-derived products. Primarily, the company is known for producing high-quality, indoor-grown cannabis products to both the medicinal and recreational markets. Recently, Organigram is strategically developing its international business partnerships increasing the company’s presence in the global market. The company is also growing its wholesale shipping of cannabis and sells products online.
OrganiGram has produced 84 new SKUs since July 2020 as a part of revitalizing its products portfolio. This includes two new high potency strains under the higher-margin Edison brand in Q3. Also, the company launched Big Bag o’ Buds an indoor-grown strain-specific dried flower in 28g format. In July, Organigram reported its third-quarter fiscal 2021 results with gross revenue up 51% sequentially to $29.1 million. The company grew its adult-use recreational net revenue by 40% sequentially to $16.8 million in Q3 2021. As of now the company expects sequentially higher revenue and improved adjusted gross margins in Q4 2021. Also, the company expects to launch more than 20 new SKUs before the end of Q4 2021.
OGI stock is trading at $2.62on August 2nd up 96.99% year to date. The stock has a 52-week price range of $1.01-$6.45 and has gained 6.50% in the last five trading days. According to analysts at CNN Business OGI stock has a 12-month median price target of $2.99 per share. This forecast would represent an increase of 14.25% from its current trading price of $2.62. With stronger than expected financials OGI stock could be a top Canadian marijuana stock for your watchlist in August.
Village Farms International, Inc.
Village Farms International, Inc. is an established greenhouse grower of agriculture doing business across North America. The company has also shifted some of its focus on opportunities in the cannabis and CBD segments in Canada and the US. At the present time, Village Farms’ wholly-owned subsidiary Pure Sunfarms is considered one of the largest cannabis operations in North America. Recently VFF stock has gained popularity among Reddit investors after the announcement of the cannabis legalization bill.
Village Farms reported first-quarter revenue of $52.4 million this was a 63% increase year over year. As a result, the company topped analysts’ estimates with revenue growth, but still reported a larger than expected loss for the quarter. Village Farm sustained a net loss in the first quarter of 2021 of $7.4 million. The company expects to release its second-quarter 2021 financials on Monday, August 9th before the bell.
VFF stock is trading at $9.54 on August 2nd down 4.83% year to date. The stock has a 52-week price range of $4.27-$20.32 and is down 9.81% in the last month. According to analysts at Tip Ranks VFF stock has a 12-month average price target of $18.33 per share. This would represent an increase of 92.14% from its current trading price of $9.54. For this reason, VFF stock could be one of the best ways to invest in top Canadian cannabis stocks in August.