cbd oil stocks on robinhoodDecember 15, 2021
Many Robinhood investors are seeing green these days, and not because of their stock gains. Instead, it’s a reference to the kinds of stocks that are popular on the trading platform. Of the 100 most widely held stocks on Robinhood, seven of them are pot stocks.
Investing in other cannabis companies could enable Sundial to be successful over the long run. However, those investments come at a steep price for shareholders: The cash used for investing comes from stock offerings that dilute the value of existing shares.
Canopy Growth ( CGC -6.28% ) takes the top spot among the popular Robinhood marijuana stocks for three key reasons. First, it’s already a major player in the global cannabis market. Canopy is one of the leaders in the Canadian recreational market as well as the German medical cannabis market.
Tilray ( TLRY -3.58% ) recently closed its merger with Aphria to create, in its words, “the world’s largest global cannabis company.” The company ranks as a market leader in Canada’s adult-use market as well as Germany’s medical cannabis market.
Thanks to its 2019 acquisition of Lord Jones, Cronos has a strong presence in the U.S. CBD products market. It also has another key partnership with U.S.-based Ginkgo Bioworks to develop cannabinoids using fermentation processes.
The chief problem for Sundial is that its sales continue to decline. In its latest quarter, the company reported that its revenue slid 29% year over year and 30% quarter over quarter. However, Sundial posted positive adjusted EBITDA thanks to its investments.
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Second, Canopy seems to have a clear path to profitability with a hefty cash stockpile to tap in the meantime. The company expects to generate positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) during the second half of its fiscal year 2022, which ends on March 31, 2022. It projects positive operating cash flow for full-year fiscal 2023 and positive free cash flow for full-year fiscal 2024. Canopy’s cash stockpile stood at $1.59 billion as of Dec. 31, 2020.
Admittedly, OrganiGram has been through a tough season. Its revenue fell in the second quarter in part due to COVID-19-related issues. Greg Engel recently stepped down as the company’s CEO.
6. Sundial Growers.
HEXO ( HEXO -6.56% ) has delivered seven consecutive quarters of adjusted EBITDA improvement and reported positive adjusted EBITDA in its latest quarter. The company claims the No. 1 market share in Quebec’s adult-use cannabis market as well as the leading national market share in Canada for cannabis beverages.
HEXO sports one of the most attractive valuations among Canadian cannabis companies. Its shares trade at less than seven times trailing-12-month sales.
Third, Canopy is in the best position in the huge U.S. market. The company already markets CBD products in the U.S. It owns options to acquire U.S. cannabis operator Acreage Holdings and to buy a significant stake in Terrascend if and when federal cannabis laws are changed. Canopy also has a big partner (and largest shareholder), Constellation Brands , that can help it achieve success in the U.S. market.
However, Cronos isn’t anywhere close to profitability yet. It isn’t even moving in the right direction to generate positive adjusted EBITDA.
Some appear to be well positioned for long-term success. But not all of them.
Truss, the joint venture formed by HEXO and Molson Coors , currently markets CBD beverages in the U.S. HEXO recently announced plans to open its first U.S. production facility through a wholly owned U.S. subsidiary. It’s also in discussions with other consumer packaged goods companies about non-beverage partnerships.
Which of these stocks are worthy of consideration and which should be avoided? Here are the most popular marijuana stocks on Robinhood ranked from best to worst.
Both Tilray and Aphria generated positive adjusted EBITDA in their most recent quarter prior to the merger. However, Aphria (which was the dominant player in the transaction) saw its revenue fall compared to the previous quarter.
The “new” Tilray already has a presence in the U.S. market with hemp foods maker Manitoba Harvest and craft beer maker SweetWater Brewery. It won’t be surprising if the company makes additional acquisitions to position itself for a potential entrance into the U.S. cannabis market when federally permissible.
Unlike the top three companies on the list, OrganiGram Holdings ( OGI -4.93% ) doesn’t have significant operations outside of Canada yet. However, OrganiGram has been successful in the Canadian adult-use market and is beefing up its position in the Cannabis 2.0 market with its acquisition of The Edibles and Infusions Corporation.
Aurora Cannabis Inc. is a company that produces and distributes medical cannabis products globally. In May Aurora announced its third-quarter fiscal 2021 results with domestic medical net revenue at $26.9 million. Also important, the company had strong international medical revenue of $9.4 million. For the third quarter of fiscal 2021, the company has total cannabis net revenue of $58.4 million. Recently the company announced its entry into the US market through the acquisition of Reliva a CBD producing company in America. Aurora also expanded its San Rafael ’71 portfolio with the launch of 3 new proprietary cultivars.
With the markets looking to start August rising near highs the best cannabis stocks to invest in could also gain momentum. These top marijuana stocks can be found on the Robinhood investment platform because they trade on the NASDAQ. The Robinhood platform has increased the retail investor pool tremendously in the past few years. With this in mind, we can take a closer look at 3 Canadian LPs that could be the best Canadian marijuana stocks to buy in 2021.
CGC stock closed on July 30 th at $18.91 and is down 21.79% in the past month. The stock has a 52-week range of $13.83-$56.50 and is down 23.25% year to date. According to analysts at CNN Business CGC stock has a 12-month median price target of $25.61 per share. This forecast would be a 35.43% upside from its last trading price of $18.91.
With operations in Canada, the US, Europe, Australia, and Latin America Tilray, Inc. is a leading global cannabis consumer packaged goods company. The company has undergone one of the biggest mergers in the Canadian market to become one of the largest revenues producing cannabis companies worldwide. Tilray is positioning itself to enter the US market and is also expanding its international presence. Recently, the company completed its first harvest and delivery of medical cannabis grown in Germany. This marks the first cannabis cultivated at Tilray’s state-of-the-art 6000 square meters grow facility in Germany.
Canopy Growth Corporation.
Heading into August the best marijuana stocks to buy have pulled back in the market. One area that saw a significant decline in value in July is Canadian cannabis stocks. After peaking in February Canadian LPs have seen the biggest drops in the market. In the first quarter, many Canadian cannabis companies missed earnings expectations which added to the selloff in the sector. With top pot stocks trading at lower levels the cannabis sector is becoming attractive for new investors.
TLRY stock closed at $14.61 up 76.88% year to date. The stock has a 52-week range of $14.61 and has gained 7.51% in the past five trading days. According to analysts at Tip Ranks TLRY stock has a 12-month average price target of $19.01 per share. This would represent an increase of 30.12% from its last trading price of $14.61.
In its last financials Canopy released the fourth-quarter fiscal year 2021 net revenue of $148 million. As a result, total net cannabis revenue was $101 million in Q4 2021 and $379 million in full-year 2021. The biggest eyesore in this report is Canopy’s net loss in Q4 2021 of $617 million. But Canopy did achieve 37% revenue growth in full-year 2021 and maintains a strong market share of the total flower category in Canada. This week the company is expected to release its first-quarter fiscal year 2022 earnings on August 6, 2021, before the open.
Top Canadian Marijuana Stocks To Watch In August.
Aurora Cannabis Inc.
Investing In Top Cannabis Stocks Right Now On Robinhood.
On July 15 th the company delivered an $8 million shipment of cannabis to Israel. The company recently completed a restructuring of its balance sheet repaid debt of approximately $89 million including accrued interest. After the payment, Aurora’s pro forma cash position was approximately $430 million in May. The company is expected to announce earnings between August 13 th and the 17 th and has not solidified a date.
From current price points, we could see substantial upside after this round of earnings. Better sales in the Canadian cannabis industry could prop up these companies long enough for US federal marijuana legalization to take place. As it stands many Canadian cannabis companies have established some form of entry into the US cannabis market.
Some have done this by way of acquisitions and partnerships with US companies. Others have already established CBD sales and will evolve to other areas of the market once it’s allowed. With Canadian cannabis companies providing better than expected earnings it could be time to put some of the top LPs on your watchlist. Before investing in cannabis stocks there are a few important factors to consider.
In Canada, Canopy Growth is one of the largest producers and distributors of cannabis and cannabis-derived products. Primarily, the company sells cannabis and hemp-derived products in Canada, the US, and Germany. Years back Canopy established a partnership with terms for acquisition with Acreage Holdings, Inc. (OTC:ACRHF). Recently, the company has 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 countries premium cannabis brands The Supreme Cannabis Company, Inc.
In the meantime, the company has established CBD products and infused beverages that could be large revenue producers across the Canadian and American markets. On July 28 th Tilray reported its 2021 fiscal year and q4 results with net revenue up 27% year over year to $513 million. As a result, the company produced a net income of $33.6 million an adjusted EBITDA of $12.3 million and completed its merger with Aphria Inc. The company grew revenue by 55% in Q4 and holds the #1 share in Canada.
For one the cannabis sector is known for having substantial market volatility making it a higher risk for investors. Doing your own due diligence and researching cannabis companies can help you achieve the best returns on your investments. Watching how a stock performs in the market can help you achieve the best entry points for your investments. As we begin August better market sentiment for top marijuana stocks could start some upward momentum for the sector.
ACB stock closed at $7.02 down 22.35% in the last month. The stock has a 52-week price range of $3.71-$18.98 and is down 15.52% year to date. According to analysts at Market Beat, ACB stock has a consensus price target of $7.58 per share. This would represent an upside of 7.9% from its last trading price of $7.02. Starting in August Canadian marijuana stocks could be well-positioned for gains right now. With this in mind, these could be the best Canadian cannabis stocks to add to your watchlist this week.