Finance6 Pot Stocks to Watch in 2021

6 Pot Stocks to Watch in 2021

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With the globalization of medicinal and recreational cannabis, the cannabis market has seen exponential growth in its revenue and sales base. Investing in the cannabis industry is wildly popular because its potential to expand will parallel the successes of the pharmaceutical and alcohol industries. Numerous companies are continually engaging in large-scale acquisitions, mergers, and partnerships. Whether it’s flower, packaging materials, or growing products, the companies in this industry are bound for growth and success. These are the 6 pot stocks to watch in 2021.

Tilray (NASDAQ:TLRY) (TSX:TLRY)

NASDAQ: TLRY

Tilray is the world’s most expansive global cannabis company and claims the industry’s largest geographic footprint, supporting over 20 brands in over 20 countries. The cannabis lifestyle and consumer packaged goods (CPG) company is based in Canada and has operations in Latin America, Europe, Australia, and the United States. In 2018, Tilray stocks went public on NASDAQ, becoming the first cannabis company to debut on a major U.S. stock exchange.

On May 3, 2021, Tilray and Aphria announced a merger described by many as a perfect match. Aphria was formerly a competitor of Tilray, and upon the announcement of the merger, Tilray stock surged 11 percent. Tilray reported revenues of $48.02 million in U.S. dollars for the quarter ended in March 2021 and Tilray shares have added approximately 95.9 percent since the start of this year.

Trulieve (OTCMKTS: TCNNF)

OTC Markets: TCNNF

This Florida-based medical and recreational cannabis production company works directly with physicians to provide the perfect products for each patient to ensure everyone can access the relief and care that they need. All of Trulieve’s products are hand-grown and specially cultivated in state-approved, climate-controlled environments. Trulieve’s cannabis products are designed to alleviate seizures, pain, muscle spasms, nausea, and other symptoms associated with serious medical conditions such as cancer.

The company recently acquired Harvest Health, announcing the merge on May 10, 2021. Trulieve will now operate 22 cultivation and processing facilities and 126 medical and recreational cannabis retail outlets across 11 U.S. states. The acquisition of Harvest Health will broaden Trulieve’s stock portfolio across all market segments, from lower-priced products to premium brands. Trulieve is expected to create an annual revenue of $1.2 million this year and estimated adjusted earnings before taxes in 2021 are $461 million.

Canopy Growth (NASDAQ:CGC) (TSX:WEED)

NASDAQ: CGC
TSX: WEED

Canopy Growth is a global cannabis consumer products company based in Ontario, Canada with origins in medical cannabis. Today, the company offers various products, from flower to soft gel capsules, as well as CBD products through Martha Stewart CBD and First & Free brands. The company has established global operations in Africa, Europe, the U.S., Latin America, and Australia. Built on partnerships, Canopy Growth is not a singular entity, but a collection of several smaller cannabis companies.

Canopy Growth has struggled to break even for years, but on April 8, 2021, it announced the acquisition of Supreme Cannabis for $38 million U.S. dollars and expects to achieve synergies of $24.8 million within two years. The acquisition will improve the company’s operations long term, but investors currently pay over 25 times the revenue for Canopy Growth stock. This compares starkly to companies like Aphria (recently merged with Tilray), that trade at multiples of around nine and five times the revenue for their stocks.

Cresco (OTCMKTS: CRLBF) (CSE:CL)

OTCMTS: CRLBF
CSE: CL

With a wholesale revenue of $274 million U.S. dollars for 2020, Cresco Labs claimed the title of the largest wholesaler of branded products in the domestic cannabis industry. The seed-to-sale company maintains a differentiated portfolio of brands aligned to distinct audiences, which helps Cresco deliver on diverse consumer expectations. Their CPG and wholesale strategies allow the company to drive revenue growth independently from its expansions in retail. Cresco’s 8 well-known brands are sold in 700 dispensaries across 10 states. On top of its 18 production facilities, 44 retail licenses, and 32 owned dispensaries, this Chicago-based company has repeatedly achieved status as the first approved dispensary in newly legalized states.

Cresco announced on May 4, 2021, that it will report its financial results under the U.S. Generally Accepted Accounting Principles (GAAP), instead of under the International Financial Reporting Standards (IFRS), for the first time on May 27, 2021, This prepares Cresco for capital market opportunities in the U.S. and encourages U.S. investors to take interest.

GrowGeneration (NASDAQ: GRWG)

NASDAQ: GRWG

As the largest hydroponics supplier in the country, GrowGeneration carries 20 renowned brands, which it sells on its Omni-Channel Ecommerce Platform with over 10,000 products available for shipping across the country. The Colorado-based company grows its revenue through same-store sales, private label, and investing in supply chain expansion through store openings and acquisitions. GrowGeneration is operational in 12 states and has 53 retail and distribution centers.

The industry leader saw a 123 percent increase in annual sales between 2019 and 2020, and a 143 percent increase in the final quarter of 2020. The company reported annual revenue of $193 million in 2020 and on May 12, 2021, GrowGeneration is expected to report surpassing its earnings estimates in the first quarter of 2021.

CuraLeaf (OTCMKTS: CURLF) (CSE:CURA)

OTCMKTS: CURLF
CSE: CURA

For the last decade, providing patients with quality cannabis for health and wellness has been Curaleaf’s focus. They offer a variety of products to serve a diverse base of customers across the nation. The majority of their 90 stores serve the medical cannabis market, but Curaleaf also operates numerous recreational dispensaries in legalized states. In addition to its expansive market, the company is a leading resource for cannabis-based education, research, and advocacy. Curaleaf is based in Massachusetts and operational in 23 states with 106 dispensaries, 23 cultivation sites, and 30 processing sites. With over 350,000 registered patients and 1,800 active wholesale dispensaries, it is not surprising that Curaleaf is making record sales.

On May 10, 2021, Curaleaf released its 2021 first-quarter report, with a revenue of $260 million. It boasted a 170 percent revenue increase from the final quarter of 2020 and expects a 17 to 21 percent increase in its quarter 2 revenue.

This is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on our site constitutes a solicitation, recommendation, endorsement, or offer by Hemp.inc, or any third party service provider to buy or sell any securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

Rachelle Gordon
Rachelle has been a professional journalist in the cannabis space for 5 years, and has contributed to publications including High Times, CannabisNow, Cannabis & Tech Today, Highly Capitalized, and more.

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