Are These The Top Weed Stocks To Buy In 2021?
With the current hype around the marijuana industry across the board, weed stocks in 2021 continue to gain momentum. This would be the case as the broader stock market continues to hold on to most of its gains from last week’s record run. Now, as most seasoned investors would know, massive federal tailwinds are fueling the U.S. marijuana industry. Evidently, 18 states, two territories, and the District of Columbia currently allow adult recreational use of cannabis. In terms of medical use, 36 states and four territories have made similar moves. With this current wave of legalization, should investors be adding the top weed stocks to their portfolios?
Well, for one thing, the increased legalization would mean increased market value. According to Grand View Research, the global legal marijuana market could be worth $70.6 billion by 2028. This would indicate a significant compound annual growth rate of about 26.7%. In particular, legal marijuana sales in the U.S. are estimated to be $24 billion just this year. Furthermore, accessibility to the calming substance is on the rise as well. For starters, the U.S. Drug Enforcement Agency (DEA) now allows growers to produce marijuana for research. Yesterday’s announcement serves to widen the scope of cannabis research which could ideally lead to more applications. Meanwhile, the state of Connecticut also launched a website to keep the public updated on the latest marijuana laws. This would keep consumers informed and incentivize supporting local legal marijuana providers.
Moreover, the marijuana industry is home to plenty of viable companies now. These range from the likes of cannabis REIT stocks like Innovative Industrial Properties (NYSE: IIPR) to producers such as Cronos (NASDAQ: CRON). With all that said, here are three top marijuana stocks worth knowing in the market this month.
Best Marijuana Stocks To Buy [Or Sell] In July 2021
- Tilray Inc. (NASDAQ: TLRY)
- High Tide Inc. (NASDAQ: HITI)
- GrowGeneration Corporation (NASDAQ: GRWG)
Tilray Inc.
Starting us off today is Tilray Inc., a leading cannabis company globally in terms of revenue. In brief, it is a global cannabis lifestyle and consumer packaged goods company. Tilray boasts operations across the U.S., Europe, Latin America, Australia, and its home turf, Canada. On top of that, the company offers a wide array of cannabis-based products, developed to improve its customers’ overall wellbeing. This is evident as its massive production platform continues to support its over 20 brands across 20 countries. For investors looking to jump on the cannabis train now, TLRY stock could be a go-to.
Despite its stocks’ year-to-date gains of over 80% so far, Tilray continues to make big plays in the industry. Just last week, the company announced its first cross-brand product collaboration, Canadian Craft Cannabis Brand (CCCB). Simply put, CCCB is a team-up between Tilray’s SweetWater Brewing and Broken Coast Cannabis subsidiaries. The new brand is now planning to launch its Broken Coast BC Lager. CEO Irwin Simon believes that this move marks the first among many milestones in Tilray’s current growth strategy. If anything, growth appears to be a core focus of the company’s game plan now. Earlier in June, Tilray also expanded its medical cannabis portfolio with a new brand, Symbios.
All in all, Tilray seems to be hard at work further expanding and building its brand now. Given the current positive trajectory of the industry, this would be a strategic move. With the company actively extending its lead against the competition, would you consider TLRY stock a top buy now?
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High Tide Inc.
Following that, we will be looking at High Tide Inc. For some context, High Tide is a retail-focused cannabis company that manufactures and distributes cannabis consumption accessories. According to the company’s estimates, it is the “most profitable Canadian retailer of recreational cannabis” in terms of Adjusted EBITDA. In terms of scale, the company currently operates out of 89 locations across Canada. Throughout the past decade, High Tide has and continues to serve consumers via its network of e-commerce platforms. More importantly, HITI stock is currently up by over 350% in the past year. Could it be worth investing in right now?
Well, some would argue that High Tide’s complementary position in the growing recreational cannabis industry is a plus point. With more consumers using the calming substance, there would be more demand for the company’s wares now. While this is great for High Tide, the company continues to make massive plays. Just yesterday, it completed the acquisition of DHC Supply or Daily High Club, an online retailer of weed consumption accessories. These include but are not limited to glass water pipes and vaporizers. Through the DHC network, High Tide now has access to DHC’s growing customer base and portfolio of high-quality products.
Notably, the current move would establish High Tide as a leading name in the global weed consumption accessories industry. With the addition of DHC, its portfolio is now home to 3 out of the top 5 most popular e-commerce platforms in the market. Safe to say, High Tide seems to be firing on all cylinders at the moment. Would this make HITI stock worth buying for you?
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GrowGeneration Corporation
Next, we have GrowGeneration, the largest hydroponics supplier in the U.S. To begin with, the company’s network currently consists of over 55 retail and distribution centers. The likes of which offer thousands of products such as organic nutrients and soils, advanced lighting technology, and state-of-the-art hydroponics equipment. Now, with most of GrowGeneration’s wares catering to the marijuana-growing industry, GRWG stock could be in focus. In fact, the company’s shares are already sitting on gains of over 650% in the past year.
On the operational front, GrowGeneration appears to be kicking into high gear. Throughout June, the company made two key expansions to its portfolio. Firstly, the company revamped its e-commerce website, GrowGeneration.com. Through this upgrade, GrowGeneration customers now have access to Buy Online Pickup in Store (BOPIS) services. With the current momentum in e-commerce trends, this would be a smart play by the company to reach a larger audience. Secondly, GrowGeneration is now marketing its patented PowerSi cannabis growth formula in the Canadian market. This is thanks to an exclusive distribution agreement with GreenPlanet Wholesale, a giant in the Canadian hydroponics market now.
Aside from that, the company also saw green across the board in its latest quarter fiscal posted in May. In detail, GrowGeneration posted significant year-over-year surges of 172% in total revenue and 266% in earnings per share. Given all of this, will you be adding GRWG stock to your portfolio?
