November has been an eventful month for the best marijuana stocks to watch. After the announcement that the GOP would introduce the States Reform Act, the cannabis sector began gaining momentum in the market. But in the last week of trading hold-ups with some of the legislation’s finer points have left cannabis stocks giving back most of the gains from any recent upside. Because of this most pot stocks are near some of their lowest price points in 2021.
So, is it time to find the best marijuana stocks to buy right now? Unfortunately for the entire year, the cannabis sector has been at the mercy of congress. Since most of the cannabis rally was based on federal cannabis reform the inability to get legislation passed has caused significant declines. Because the future looks promising, we will get a bill that satisfies both parties soon it could be time to make a list of the best cannabis stocks to invest in.
In November most leading cannabis companies are delivering earnings that continue to show significant market growth and revenue increases. In general, this shows that although the cannabis sector is down in the market the industry is growing rapidly on the state level. As new states develop cannabis legalization and open new markets the leading companies continue to gain market share.
Before investing in pot stocks, it’s important to always do your own research on a company. Looking into a company’s earnings and press releases can help you find the best ones to invest in. In addition, following a stock’s performance in the market can allow you to establish the best entry point for your investment.
Learning how to read stock charts and using watchlists to keep track of possible investments can help you become a successful trader. One thing to keep in mind about cannabis stocks is that they are known for extreme market volatility that is evident in this year’s trading. As we start a new week the recent price drop for most pot stocks could be an opportunity to get in at lower trading levels.
For the most part, it seems Congress will not be able to pass federal marijuana legalization in 2021 but is moving much closer to reaching a middle ground between Democrats and Republicans. Let’s look at 4 top marijuana stocks to add to your watchlist for next week.
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Power REIT is a real estate investment trust focusing on sustainable real estate with attractive risk-adjusted returns. In general, Power REIT owns a growing portfolio of Controlled Environment Agriculture or CEA properties in the form of greenhouse and associated processing space. Specifically, the properties are leased to tenants that are licensed to produce medical cannabis at the facilities. The properties are targeting expansion and Power REIT has the option to fund the capital costs of property upgrades. In addition, Power REIT’s greenhouse properties are an environmentally friendly cultivation solution.
Power REIT expanded its Colorado footprint by acquiring a 10-acre property that includes the construction of a 12,000 square foot greenhouse space. As a result, this gives the company investment properties across Southern Colorado with over 83 acres and 383,328 square feet of CEA facilities. In September the company acquired a 556,146 square foot cannabis greenhouse cultivation and processing facility for $18.4 million. This facility will be the largest cannabis cultivation facility in Michigan and one of the largest in the US. In Power REITs latest results net income per share increase 121% and Core FFO per common share increased 98%. For Q2 the company paid a dividend of $0.4834 per share each quarter which would be a total of $1.9375.
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Innovative Industrial Properties, Inc. is a real estate investment trust with a focus on the US-licensed cannabis industry and the largest cannabis REIT in the market. In general, the company has a total of approximately 7.5 million rentable square feet and 2.7 million square feet under development. Specifically, these properties are 100% leased with a weighted average remaining lease term of about 16.7 years. At the present time, the company owns 76 properties across 19 states. As of November 3rd, IIP has invested a total of $1.5 billion and committed another $391.7 million to reimburse tenants for property improvements. IIP continues to close acquisitions including properties in Pennsylvania and Massachusetts expanding its lease portfolio significantly in 2021. Immediately, after the purchase, IIP will enter a long-term triple net lease with the cannabis company using the property.
In November IIP reported its third-quarter 2021 results with general total revenues of about $53.9 million for the quarter. This represents an increase of 57% year over year. In addition, the recorded net income to common stockholders was $29.8 million in Q3, or about $1.20 per diluted share. Also important, IIP paid a quarterly dividend of $1.50 per share In October representing an increase of 28% year over year. Currently, the company has approximately $127.3 million in cash and about $554.4 million in short-term investments.
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Scotts Miracle-Gro is one of the world’s largest marketers of branded consumer lawn and gardening products. The company also has a hand in the cannabis market. For those that don’t know, the company’s wholly-owned subsidiary Hawthorne Gardening is a leading supplier of nutrients, lighting, and hydroponic equipment used in the process of growing cannabis. On November 6th the company announced an increase to its dividend to $0.66. In detail, this gives SMG stock a dividend yield of 1.6%.
In November Scotts announced record full fiscal year 2021 results that saw Hawthorne sales increase 39% in fiscal 2021. Primarily, Scotts US consumer segment sales increased 11% in fiscal 2021. As a result, the company saw full-year GAAP earnings of $9.03 per share and non-GAAP adjusted full-year EPS of $9.23. In addition, Scotts gave fiscal 2022 guidance with non-GAAP adjusted EPS of $8.50-$8.90. The company also announced the intention of share repurchase of $300 million in fiscal 2022.
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Verano is one of the largest multi-state operators providing regulated cannabis products to US cannabis consumers. In general, the company produces premium cannabis products sold under its portfolio of consumer brands. Presently, Verano has active operations in 11 states with 89 operational dispensaries nationwide, and 12 cultivation and processing facilities. In Florida, the company has 38 dispensaries which is a significant presence in that market. Verano expects to surpass 90 dispensaries in 2021. Specifically, the company operates dispensaries under retail brands Zen Leaf™ and MÜV™ catering to both medical and adult-use markets. In October the company opened a dispensary with a drive-through on Flamingo Road in Las Vegas.
Verano completed the acquisition of TerraVida and The Healing Center. Ultimately, this acquisition gives Verano six dispensaries in Pennsylvania and a permit to build an additional three in the state. Earlier in the year, the company opened a flagship Pittsburgh dispensary with a four-lane drive-through. On November 16th the company announced its third-quarter 2021 results with revenue of $207 million up 106% year over year. In addition, gross profit increased 33% sequentially on an unadjusted basis to $133 million or 64% of revenue. In Q3 Verano expanded its footprint with seven new dispensaries across its core markets.