U.S. Marijuana Stocks And Current Market Trends

As we head into the Christmas week in December investors are looking for marijuana stocks to buy for 2021 gains. In general cannabis, stocks have made shareholders some substantial returns in 2020. For the most part, an investment into the top U.S. pot stocks to watch in 2020 would have benefitted your portfolio. Currently, U.S. marijuana stocks like Green Thumb Industries (GTBIF Stock Report), and Curaleaf Holdings Inc (CURLF Stock Report) have reached year to date highs in December. In addition, these companies also have brought in record revenue for the latter part of the year. In essence, this is showing investors an example of what a growing cannabis industry could look like for the next few years.

Be that as it may, with so many options showing potential for next year it becomes difficult for investors to find the right pot stocks. Presently in the cannabis market, U.S. marijuana stocks look to be solidifying gains from earlier in the month. In reality, most cannabis stocks could be establishing a new base before they continue with more upward momentum.  So long as stock market optimism continues, and U.S. federal reform is addressed in the coming months the potential for marijuana stock gains could be substantial. On the other hand, investors must always keep in mind that leading marijuana stocks have shown market volatility in the past and could be susceptible to more in the future.

Canadian Cannabis Stocks And The American Cannabis Market

Because U.S. marijuana stocks have climbed so much in the market in the past few months some investors are moving forward cautiously. In the event, cannabis stocks pull back some because the MORE Act does not pass in the Senate investors could start a position at lower levels. Or they could look for value in other areas of the market. For example, last week most leading Canadian cannabis stocks have lost some of the gains they experienced earlier in the month and in November. In particular companies like Cronos Group Inc. (CRON Stock Report) hit a 52-week high of $9.15 but has since dropped down to close last week’s trading at $7.78. In general, this market trend has been consistent throughout most Canadian pot stocks. With this in mind, it might be time to look for value in the best Canadian marijuana stocks for 2021.

Best Canadian Marijuana Stocks To Watch #1: Aphria Inc.

Aphria Inc. (APHA Stock Report) has recently begun to reshape the Canadian cannabis industry landscape with a recent merger announcement. The company is merging with another leading Canadian cannabis company Tilray Inc. (TLRY Stock Report). As the two join forces, they could currently be in consideration as the largest cannabis company in the world. In fact, the two will combine to have a pro forma revenue of $685 million. As it stands Aphria has been positioning itself in 2020 to enter the U.S. cannabis market. Recently Aphria purchased the independent U.S. craft brewer SweetWater Brewing Company which already has its own line of 420 beverage offerings.

In essence, if federal regulation changes occur Aphria will be set up to enter the U.S. with THC-infused beverages and other cannabis derivatives. In the case of the Tilray merger, Aphria will have an early chance to solidify its presence in the U.S. through the Hemp market. This is due to the fact that hemp-derived CBD could currently make its way legally into the U.S.  Provided that the government reforms federal cannabis laws Aphria could be one of the best positioned Canadian Cannabis companies right now.

APHA Stock is currently up over 46% year to date and lost some market value in last week’s trading sessions. The stock has a 52-week high of $8.88 which it reached the first week of December.  Currently, analysts are giving APHA stock a forecast price target of $9.03 which would be over 18%from recent price levels. It’s important to realize if the U.S. legalizes cannabis federally APHA stock could be a cannabis stock that sees gains. With this in mind, APHA stock is a Canadian marijuana stock with growth potential in the U.S. in 2021.

Best Canadian Marijuana Stocks To Watch #2: Canopy Growth Corporation

Canopy Growth Corporation (CGC Stock Report) has until this point been considered the largest Candian cannabis company in 2020. Recently, the company announced it would initiate operational changes and close outdoor grow facilities to streamline operations and improve margins. As a result of the closings, 220 employees have lost work.  And most Canadian marijuana stocks began trading lower in the market. Although this negatively affects Canopy in the short-term analysts predict the cuts will improve margins and provide money to invest.

In addition, Canopy has also spent 2020 establishing plans to enter the U.S. cannabis market. Earlier in the year Canopy announced an agreement with Acreage Holdings Inc. (ACRHF Stock Report) to release a line of THC-infused beverages in the summer of 2021. Another key move Canopy has made is the loan to TerrAscend Corp. (TRSSF Stock Report) of $20 million for over 2 million shares in the company. In general, this could be seen as the manner in which Canopy establishes its entry into the American marijuana market.

CGC Stock is up over 23% year to date and has a high of $29.52 on December 2nd.  Closing last Friday trading at $25.97 analysts are predicting CGC stock could pullback some more in next week’s trading. As things progress in the U.S. with federal legalization, Canopy could be a well-positioned company in the U.S. cannabis market. For this reason, CGC stock is a Canadian cannabis stock to watch in 2021.