Are you looking for the best marijuana stocks to buy in November? In the last week, some of the top cannabis stocks to invest in have continued to decline in value. Since the cannabis sector rallied in February, we have seen pot stocks drop to 2020 trading levels. One area that has seen substantial market volatility is the top Canadian marijuana stocks. In 2021 Canadian cannabis stocks saw the most upside during the first-quarter rally.
In addition, they have also declined the most in this recent downtrend. This is partly because the US continues to delay federal cannabis reform and legalization in 2021. Without full entry into the US cannabis market, Canadian companies have not performed as well as US cannabis companies this year. So far most of the revenue growth this year has been seen in US cannabis companies and their earnings have outperformed the Canadian cannabis companies.
In general, the Canadian cannabis market has continued to see sales increase saw the year has progressed. In August Canadian cannabis sales increased by 43.8% to a record $356.9 million. On the international level leading Canadian cannabis companies also have a large presence in the global market. As all these markets continue to grow Canadian companies are well-positioned to gain future market share.
Before investing in cannabis stocks, it’s important to do your due diligence on a company. Researching a company and looking into its financial results and press releases can help you find the best-performing companies. In addition, following how a stock performs in the market can help you establish the best entry points for your investments. One important factor to consider before investing in cannabis stocks is the high market volatility in the sector.
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Because of these price swings many investors prefer trading marijuana stocks on a short-term basis. But some top cannabis stocks may also have long-term returns for shareholders. From current levels, top Canadian marijuana stocks could deliver upside for investors. One major catalyst many investors are expecting soon is US federal cannabis legalization. As we close out the first week in November let’s look at 2 top Canadian cannabis stocks for your watchlist next week.
Canopy Growth is one of the largest producers and distributors of cannabis and cannabis-derived products in the Canadian market. Currently, the company sales cannabis and hemp-derived products in Canada, the US, and Germany. To highlight, Canopy made a US distribution agreement with Southern Glazers Wine & Spirits for a CBD beverage portfolio. In the Canadian market Canopy increased its brand portfolio with the acquisition of one of the country’s premium cannabis brands The Supreme Cannabis Company, Inc. Additionally, the company introduced Whisl an innovative CBD vape designed to manage your mood throughout the day. In October the company announced it has plans to acquire Wana Brands the #1 edibles brand in North America.
Canopy released its second-quarter fiscal 2022 financial results with $131 million and a total net cannabis revenue of $95 million. As it stands the company saw a net loss of $16 million in Q2 fiscal 2022. As a result, Canopy had an Adjusted EBITDA loss of $163 million in Q2 FY 2022. To highlight Canopy has plans to acquire the #1 edibles company in North America Wana Brands.
CGC stock closed at $13.26 on November 4th, down 4.99% in the past five trading days. Currently, the stock has a 52-week price range of $12.45-$56.50 and is down 46.19% year to date. According to analysts at CNN Business CGC stock has a 12-month median price target of $17.81 per share. This would represent an upside of 34.191% from its last trading price.
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Next on the list is HEXO Corp. a Canadian company with award-winning cannabis products in the market. Primarily, the company has a presence throughout a global industry, serving the Canadian recreational market with an extensive brand portfolio. In general, HEXO is producing medical sales in Canada, Israel, and Malta. Additionally, the company has been expanding into is the US cannabis market as well. HEXO serves the Colorado market with Truss CBD USA a joint venture with Molson Coors. Recently, the company acquired Zenabis Global Inc. a Canadian licensed cultivator of recreational and medical-grade cannabis. Both acquisitions will help solidify the future expansion for HEXO in Canada, Europe, and the US market.
On October 29th the company delivered its fourth-quarter fiscal 2021 results that show strong growth. Specifically, the company saw total Q4 2021 net sales of $38.7 million up from $22.6 million in Q3 2021. In addition, total net revenue increased to $123.5 million in fiscal 2021. HEXO also purchased its first US production facility through a wholly-owned US subsidiary. The 50,000 square foot facility is in Fort Collins, Colorado, and will provide high-quality Powered by HEXO products across the US.
HEXO closed on November 4th at $1.40 down 4.76% in the past five trading days. Currently, the stock has a 52-week price range of $1.27-$11.04 down 61.96% year to date. According to analysts at CNN Business HEXO stock has a 12-month median price target of $4.03 per share. In this case, this would be an upside of 15.25% from its last trading price of $1.40.
[Read More] Canadian Cannabis Stocks To Watch In November 2021