As marijuana stocks close the second week in May most leading cannabis stocks to invest in are showing some upside in the market. After the first-quarter rally in February top pot stocks have lost substantial value in the market. On the other hand, most cannabis companies continue delivering strong revenue gains and record earnings that should not be overlooked by investors. In the US the cannabis industry continues to show bullish potential in 2021.
Additionally, Fire & Flower subsidiary Hifyre entered into an agreement with leading U.S. analytics company BDSA. With this Hifyre IQ will become available in the U.S. cannabis market. In April the company announced record fourth quarter and fiscal 2020 results. Specifically, Q4 revenue increased 157% to $43.2 million year over year. In fiscal 2020 Fire & Flower achieved total revenue of $128.1 million and a gross profit of 35.5%. Also, same-store sales for the quarter are up by 36.8% from a year prior.
Finding Value In Penny Stocks
In 2021 these penny stocks saw the most gains in the February rally. Although many have given some of these gains back in recent trading some are still up triple-digit percentage gains year to date. Before investing in cannabis penny stocks there are a few important factors to consider. For one, the best penny stocks are known for being some of the most volatile stocks in the market.
Because of this more investors prefer to establish short-term positions and take advantage of price fluctuation. Whatever your trading style pot penny stocks are known for being a high-risk high rewards part of the market. This is because investors can use much less capital to establish a larger position in these equities. As we close the second week in May these could be the top marijuana penny stocks to watch right now.
With the SAFE Banking Act on the Senate floor through a bipartisan committee. Chuck Schumer continues to reiterate that he is currently working on introducing a bill shortly. The senator wants to pass a cannabis legalization package before the banking reform policy. Either way, cannabis investors will have to be patient and wait for this market catalyst at the moment.
These are the marijuana penny stocks with the lowest 12-month trailing price-to-sales (P/S) ratio. For companies in early stages of development or industries suffering from major shocks, this can be substituted as a rough measure of a business’s value. A business with higher sales could eventually produce more profit when it achieves, or returns to, profitability. The price-to-sales ratio shows how much you’re paying for the stock for each dollar of sales generated.
To begin with, cannabis stocks face higher-than-normal risk and volatility due to a long list of factors. Many publicly traded cannabis companies are young, unproven enterprises that face a complicated, fast-changing market that includes different laws across many local, state and regional jurisdictions. Also, cannabis use is still illegal at the U.S. federal level. The challenges are particularly great for marijuana penny stocks, and investors should be especially cautious and perform more than their usual due diligence when investing in these companies. Some up-and-coming names in the marijuana penny stock category include High Tide Inc. (HITI.V) and Vireo Health International Inc. (VREOF).
Medical and recreational cannabis use has been legalized in a growing number of U.S. states and on a national level in Canada, fueling a burgeoning legal cannabis industry in recent years. Cannabis stocks are now a prime focus for investors seeking potentially explosive sales and stock growth. But there are certain considerations associated with marijuana stocks that investors should keep in mind.
Fastest-Growing Marijuana Penny Stocks
Marijuana stocks, represented by the ETFMG Alternative Harvest ETF (MJ), have solidly outperformed the broader market. MJ has provided a total return of 61.1% over the past 12 months, ahead of the Russell 1000’s total return of 43.2%. Note that MJ targets a broad assortment of cannabis industry stocks, including penny stocks. These market performance numbers and all statistics in the tables below are as of July 2, 2021.
Here are the top three marijuana penny stocks with the best value, the fastest growth, and the most momentum.
These are the marijuana penny stocks with the highest year-over-year (YOY) sales growth for the most recent quarter. Rising sales can help investors identify companies that are able to grow revenue through organic or new ways, as well as find growing companies that have not yet reached profitability. In addition, earnings per share can be significantly influenced by accounting factors that may not reflect the overall strength of the business. However, sales growth can also be potentially misleading about the strength of a business, because growing sales on money-losing businesses can be harmful if the company has no plan to reach profitability.
These are the marijuana penny stocks that had the highest total return over the last 12 months.
Tilray was another victim of the global financial meltdown, thanks to COVID-19. TLRY saw it’s share price dragged down to $2.43 on March 18.
For the quarter, analysts expect Tilray to report revenue of $50.7 million—7.9% sequential growth from $46.9 million in the fourth quarter of 2019.
12-Month Trailing P/S Ratio: 1.7
How to Buy a Potstock?
However, they’ve since made a shocking recovery, a 205% rise in price to $7.41. Further to that, last month alone, Tilray stock rose 17% compared to a 13% increase in the S&P 500.
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MJNA aka medical marijuana inc stock is a penny pot stock that has been trading sub $1 for a long time now. It’s known as a pump and dump stock in the pot stocks sector, so there’s no guarantee when this stock will rise again. It gets sympathy moves the more that the marijuana sector gets legalized.
There has been a lot of focus lately on stocks in the cannabis sector… and for a good reason. Stories of shares going from $.20 to $20.00 are not unheard of. So what are the best potstocks?