As Congress prepares to vote on Federal cannabis reform and legalization in June more investors are focusing on the top Canadian marijuana stocks to buy. This is primarily because eventually, federal reform could bring Canadian cannabis companies into the American cannabis market in the next few years. As it stands the Canadian cannabis companies have been preparing for entry into the US market since before the presidential election.
Because of the limited size, the Canadian cannabis market has when compared to the US market this move into the American cannabis industry would add the possibility of much higher revenue for the LPs. In Canada, the cannabis industry has continued to grow with the addition of the derivatives market. Also because of a new system of giving out cannabis licenses more dispensaries have been able to open at a faster rate.
All these factors could help Canadian marijuana companies perform better in the near future. In their latest earnings reports Canadian cannabis companies have not fared as well as US companies. In fact, some of the larger Canadian companies have delivered earnings that fall short of estimates and have seen a steep decline in market value. Another factor that has changed the landscape of the cannabis industry is mergers and acquisitions.Top Pot Stocks In 2021
In 2020 and the first quarter of 2021 there have been many significant changes to the top cannabis companies to watch. This has created larger companies with much more market share and possible revenue growth. In addition, Canadian cannabis companies have established an overseas medicinal cannabis export business that could grow exponentially in the next few years. But there are a few important factors to consider before investing in cannabis stocks.
For one the cannabis sector is known for market volatility and has extreme changes in stock prices making them high risk. For investors, this means doing your own due diligence and researching a company’s financial status is crucial to your investment decisions. Picking the right entry point into an investment can make the difference between a profit and a loss to your portfolio.
With this in mind, we can take a closer look at some leading Canadian cannabis companies right now. With the prospect of federal legalization in the US, these companies could see tremendous upside if the MORE Act is passed in Congress. In the event, the US opens its doors in the cannabis market these could be the best Canadian marijuana stocks to buy in June.Marijuana Stocks To WatchTilray, Inc.
Tilray, Inc. is a leading global cannabis consumer packaged goods company with operations in Canada, the US, Europe, Australia, and Latin America. Recently, with the completion of a merger with Aphria Inc., Tilray, Inc. has become one of the largest revenue-producing Canadian cannabis companies in the world. In its latest earnings report, Tilray missed its earnings estimates and took a significant hit in the market. Now in June TLRY stock seems to be showing some upward momentum in trading.
As it stands the new Tilray has a market cap of approximately $8.2 billion. Before merging Aphria Inc. acquired an independent US craft brewer Sweet Water Brewing Company. Initially, this acquisition could play an important role in the company’s entry into the US cannabis industry. Currently, both companies have a significant presence in the global markets and could see substantial growth around the world. Additionally, the company has also established CBD products and infused beverages. In general, this could be a large revenue producer across the Canadian and American cannabis markets.
TLRY stock is trading at $19.66 on June 7th up 4.57% for the trading day. In the past month, TLRY stock has gained 16.77% in the market and has a high of $67.00 in February. According to analysts at Tip Ranks TLRY stock has a 12-month average price target of $20.75 per share. This forecast would represent an increase of 5.17% from current trading levels. With this in mind, TLRY stock could be a top Canadian marijuana stock to buy in June.Canopy Growth Corporation
Recently many Canadian cannabis companies have been establishing entry into the US market. At the current time, Canopy Growth has several ways to capitalize off the US cannabis industry once federal legalization happens. The company has established a partnership and possible acquisition with Acreage Holdings, Inc. (OTC:ACRHF). Additionally, Canopy has also signed a US distribution agreement with Southern Glazers Wine & Spirits for a CBD beverage portfolio. Specifically, this partnership will coincide with the launch of the company’s new Quatreau CBD-infused beverages. In Canada Canopy has strengthened its brand portfolio with the acquisition of Canada’s premium brand The Supreme Cannabis Company, Inc. (OTC:SPRWF).
On June 1st Canopy released its fourth-quarter fiscal year 2021 financials. In detail, the company is reporting net revenue of $148 million in Q4 2021. Total net cannabis revenue of $101 million in Q4 2021 and $379 million in full-year 2021. Most important Canopy saw a net loss in Q4 2021 of $617 million. In fact, the company sustained the full year 2021 net loss of $1.7 billion. Currently, Canopy has its work cut out for itself if it’s to reach its goals of profitability by mid-2022.
CGC stock closed on June 7th at $25.65 up 4.10% year to date. In February CGC stock reached a high of $56.50 and is down 9.62% in the past six months. According to analysts at CNN Business CGC stock has a 12-month median price target of $26.81 per share. In essence, this would represent an increase of 4.61% from current trading levels. For this reason, CGC stock could be a Canadian cannabis stock to add to your watchlist in June.