Are you looking for ways to invest in marijuana stocks in 2021? For the past five months, the cannabis sector has been pulling back in the market reaching some of their lowest market values recently for 2021. After pushing up significantly the first trading day in August many cannabis stocks have been giving back some of the gains from earlier in the week. With several months of consolidation behind these stocks, cannabis earnings in August could help pot stocks turn around this negative trend.
In July most cannabis stocks declined for the fifth consecutive month. At current trading, most marijuana stocks could have significant upside. One area of the cannabis market that could hold returns for investors is ancillary cannabis companies. Ancillary companies are those that support the cannabis industry without touching the actual cannabis plant. These top cannabis stocks have shown more stability than other vertically integrated pot stocks.
Some companies are vertically integrated and manufacture cannabis accessories for consumers as well. In any case, these companies are well-positioned to grow alongside the cannabis market for the next few years. In August there are a few possible catalysts that may bring some upward momentum to the cannabis sector.
Making A Marijuana Stock Watchlist And Researching Cannabis Companies
With marijuana stocks trading bearish in the market this could be a good opportunity for investors to add the best marijuana stocks to invest in on their watchlist. Before investing in marijuana stocks there are important factors to consider about the sector. For one top cannabis stocks are known for having significant market volatility.
This makes it a necessity to do your due diligence on a cannabis company before investing. Researching a company’s financials and studying how a stock performs in the market can help you establish the best returns on your investment. For the next five years, the cannabis industry is expected to more than double in legal sales.
For investors looking for exposure in the market, we can take a closer look at leading ancillary cannabis companies for your list. With most leading cannabis companies reporting earnings in the next few weeks the cannabis sector could be primed for a rebound. With this in mind, let’s look at 2 top marijuana stocks for your watchlist in August.Top Ancillary Marijuana Stocks To Watch In AugustGreenlane Holdings, Inc.
Greenlane Holdings, Inc. is one of the largest cannabis accessories companies serving the global market. In general, the company is a platform that sells premium cannabis accessories, child-resistant packaging, and specialty vaporization products in the US and internationally. Currently, Greenlane has a customer base of more than 11,000 retail locations across the world. The company merged with KushCo Holdings, Inc. (OTC: KSHB) is an all-stock deal creating a new provider of cannabis ancillary products and packaging.
Greenlane released its first-quarter 2021 financials that show a strong start this year. In detail, the company saw Greenlane Brand sales set back-to-back quarterly sales records and account for 25% of total revenue. During Q1, Greenlane Brands saw sales of $8.5 million. In addition, total revenue increased to $34 million in Q1 2021. Greenlane expects the proposed merger with KushCo to be complete in Q3 2021. On July 30th Greenlane reported preliminary second-quarter 2021 results that show it may miss expectations. In detail, the company is reporting net sales of $34.5 million with a gross margin of 21%-22%.
GNLN stock closed on August 4th at $3.23 down 18.43% year to date. The stock has a 52-week price range of $1.83-$8.73 and has declined by 26.26% in the last 30 days. According to analysts at CNN Business GNLN stock has a 12-month median price target of $7.50 per share. This forecast would represent a gain of 132.20% from its last trading price of $3.23. Once the merger is complete Greenlane could see significant growth in the next few years. For now GNLN stock could be a top marijuana stock to add to your list for August.High Tide Inc.
High Tide Inc is a retail-focused cannabis corporation that also manufactures and distributes consumption accessories. The company has a portfolio of companies that include a dominant Canadian cannabis retail chain, and a global manufacturer and distributor of cutting-edge smoking accessories. Primarily, the company has established the largest accessories eCommerce platform in the world. On August 3rd High Tide opened its 21st retail location in Ontario which is the companies 89th branded retail location across Canada.
High Tide reported its second-quarter 2021 results with revenue increasing 99% to $40.9 million. As a result, Gross profit margins for Q1 were $4.7 million versus $1.8 million the prior year. In Q2 the company completed the acquisition of Smoke Cartel Inc and launched the sale of hemp-derived CBD products under its Grasscity brand. The company also continues to see rapid expansion into the US cannabis market through the acquisition of a leading online retailer Dankstop.
HITI stock closed on August 5th at $6.41 up 113.35% year to date. The stock has a 52-week price range of $3.00-$13.29 and has declined by 15.88% in the last 30 days. According to analysts at Tip Ranks HITI stock has a 12-month average price target of $15.95 per share. This forecast would represent an increase of 148.83% from its last trading price of $6.41. For this reason, HITI stock could be one of the best ancillary marijuana stocks for your watchlist right now.