Business & Investment

3 Top Cannabis Stocks to Buy Now

I’ve had a lot of shopping in the cannabis space since November. The legalization of cannabis and Joe Biden’s victory in five US states has boosted investor confidence. Investors hope that cannabis-supporting bills, such as the SAFE Banking Act and the MORE Act, will soon become legislation, as the Democratic Party controls both the Senate and the House of Representatives. So, in a favorable environment, here are three cannabis stocks that can offer excellent returns this year.

Afria

From early November Afria (TSX: APHA)(NASDAQ: APHA) Returned over 155.6%.Its impressive, along with the optimism of the cannabis space Second quarter performance Moved the stock price of the company. During the quarter, analysts exceeded both top-line and bottom-line expectations. In the meantime, given its high growth prospects, I believe the rally can continue.

Aphria has a large market share in Canada’s entertainment cannabis market by offering attractive and relevant products, and its arc and dry flower products perform very well. .. The company’s recent acquisition of Sweet Water has allowed it to expand its business in the United States.

Meanwhile, Aphria is working on integration with Tiley, Management expects to close the deal by the end of April or early May. The merger will significantly strengthen the position of the integrated entity in the Canadian and US recreational cannabis markets. In addition, this synergy could result in $ 100 million in pre-tax savings within two years of closing the transaction. Therefore, given its high growth prospects and improved profitability, I’m bullish on Aphria..

Greensome Industries

After achieving an impressive return of over 140% last year Greensome Industries (CNSX: GTII) Stock prices have risen by more than 20% this year and continue to gain momentum. Five states in the United States legalized the cannabis program in November. On the other hand, given the budget deficit in the face of increased spending from COVID-19, more states could follow suit. The expansion of the US cannabis market has the potential to bring significant benefits to Green Thumb Industries.

Meanwhile, the company has 13 cultivation and manufacturing facilities and has sound production and distribution capacity. The company has a strong presence in 12 states with 6 consumer brands. It also operates 51 retail stores. However, the company owns 97 licenses. Therefore, there is considerable room for expansion.

Green Thumb Industries’ margins are expanding with several cost-cutting initiatives and increased operating leverage. The recently announced third-quarter adjusted EBITDA was 33.9%, compared to 29.6% in the second quarter. Therefore, given the company’s responsive market expansion and improved profit margins, I believe Greensome Industries shares may continue to rise.

Canopy growth

Canopy growth (TSX: WEED)(NYSE: CGC)One of the largest cannabis companies by market capitalization, has increased by more than 67% since the beginning of November. Despite the surge, the company is still trading about 38% lower than record highs, offering excellent buying opportunities. While its valuation appears to be growing, Canopy Growth’s share price could continue to rise given its high growth prospects and its expanding responsive market.

Canopy Growth focuses on Canada, the United States and Germany, which account for 90% of global cannabis sales. In Canada, the company has a large market share in the cannabis-injected beverage segment. The Flower Quality Improvement Program has helped the company increase its market share in the flower sector.

In the United States, there is growing demand for Canopy Growth’s Storz & Bickel vaporizer products. Therefore, the company plans to triple its production capacity. In addition, we plan to introduce THC-injected beverages in California and Illinois this summer. With liquidity of $ 1.72 billion, the company has the financial strength to carry out its growth initiatives.

Meanwhile, see the report below for the top 10 stocks to buy this month.

10 Best Stocks to Buy This Month

Ian Butler, a well-known Canadian investor, has nominated 10 shares for Canadians to buy today. So if you’re tired of reading about getting rich in the stock market, today may be a good day for you.
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A stupid contributor, Rajiv Nanjapla, does not have a position in any of the shares mentioned.

3 Top Cannabis Stocks to Buy Now

https://www.fool.ca/2021/01/26/3-top-cannabis-stocks-to-buy-right-now/ 3 Top Cannabis Stocks to Buy Now

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