Best Marijuana Stocks For Momentum In May
Are marijuana stocks on your radar after mixed earnings from Canadian cannabis stocks? To close last week’s trading the cannabis sector began to experience some upward momentum, especially with Canadian pot stocks. In 2022 most cannabis stocks have dropped to new lows this month along with most of the overall market. For new investors looking to gain exposure to the cannabis industry, this could be time to start watching for an entry. Although many analysts predict the market could continue lower it could be time to make a watchlist before a recovery.
Because the best cannabis stock to buy have shown significant volatility many cannabis investors have been trading these stocks on a short-term basis. In general, active traders use day trading and swing trading techniques to produce gains with pot stocks. In specific these strategies allow them to take advantage of the price fluctuations top marijuana stocks are known for daily. At the present time, Canadian LPs have struggled to turn a profit, and delays in the US with federal cannabis reform have taken their toll on market valuation.
In general, US-based cannabis companies have performed much better and have become the largest revenue producers in the industry. But Canadian cannabis stocks get far more exposure to investors because they trade on the major US stock exchanges. Ultimately this means that any momentum in the sector could start with Canadian pot stocks and then spread to the rest of the sector. Let’s take a closer look at 3 top Canadian marijuana stocks for your list for the third week in May.
Best Canadian Marijuana Stocks For May 2022
- Canopy Growth Corporation (NASDAQ: CGC)
- Tilray Brands, Inc. (NASDAQ: TLRY)
- Cronos Group Inc. (NASDAQ: CRON)
Canopy Growth Corporation
Canopy Growth has grown to become one of the leading producers and distributors of cannabis and cannabis-derived goods in Canada. At the present time, the company primarily offers cannabis and hemp-derived goods in Canada, the United States, and Germany. Canopy will commercialize CBD drinks in the United States in 2021 in collaboration with Southern Glazers Wine & Spirits. To broaden its brand portfolio in Canada, Canopy has acquired Supreme Cannabis Company, Inc., a high-end cannabis company. Whisl, an innovative CBD vape meant to help you control your mood throughout the day, was also released by the company. More Tropical CBD Wellness Gummies were added to the Martha Stewart CBD brand’s roster in March.
Canopy reported its third-quarter fiscal 2022 earnings in February, with net revenue of $141 million, down 8% from Q3 F2021. Additionally, gross margins were 7% in the third quarter of FY2022 compared to 16% in the third quarter of FY2021. Importantly, the corporation lost $115 million in the third quarter of 2022, a significant drop from the $714 million deficit in FY2021. With a 10% market share in Canada, the business remained the industry leader. Due to growing client demand for the company’s new strains, the company’s market share in 2022 has stabilized. The company revealed a behind-the-scenes look at its 7 ACRES premium flower production in April. On May 27th the company will deliver its fourth quarter and fiscal 2022 results before the market opens.
CGC Stock Performance
CGC stock closed at $5.92 on May 13th down 16.74% in the past month of trading. Currently, the stock has a 52-week price range of $4.82-$26.96 down 32.19% year to date. According to analysts at CNN Business CGC stock has a 12-month median price target of $7.00 per share. This estimate would be an 18.64% increase from its last trading price of $5.92.
Tilray, Inc. is a global cannabis consumer packaged goods (CPG) company with operations in Canada, the United States, Europe, Australia, and Latin America. The company has established itself as a market leader in Canada and as one of the world’s most successful cannabis enterprises. Tilray is getting ready to enter the US market and expand its worldwide footprint. Tilray was also the first medical marijuana grower and seller in Germany. According to the company, CBD-infused foods and beverages have a lot of potential in both the Canadian and American markets. In 2021 Tilray and Great North Distributors signed a distribution partnership to assist Canada’s legal cannabis business to prosper.
The company began selling medicinal cannabis products in Malta on February 17th. Tilray recently acquired a majority stake in MedMen convertible notes, signaling its entry into the US cannabis industry. Tilray reported $52.5 million in net income and $10.1 million in Adjusted EBITDA for the third quarter of fiscal 2022. This is the company’s 12th quarter of consecutive positive Adjusted EBITDA. In addition, net sales climbed by 23% to $152 million, with gross profit increasing by 31% to $39.8 million. In addition, Tilray and HEXO Corp. (NASDAQ: HEXO) signed a comprehensive agreement in April to form a strategic collaboration between the two Canadian cannabis heavyweights.
TLRY Stock Performance
On May 13th, the shares of TLRY closed at $4.54, down 29.28% in the past month. The 52-week price range for the stock is $3.89-$23.04 and is down 35.42% year to date. According to CNN Business experts, TLRY stock has a 12-month consensus price objective of $7.25 per share. This represents a 59.69 percent increase over the previous trading price of $4.54.
Cronos Group Inc.
Cronos Group Inc., a multibillion-dollar cannabis producer, and distributor with operations on five continents is one of the world’s largest cannabis companies. In general, the company has amassed a cannabis brand portfolio that has received rave reviews from customers in Canada. Cronos also announced the $110.4 million purchase of a 10.5 percent interest in PharmaCann. Several factors, including the status of federal cannabis legalization in the United States, will impact the purchase. PharmaCann’s six manufacturing facilities and 23 dispensary sites would be included in the deal. The business debuted a new line of dual-flavor cannabis edibles earlier this year. Adults have been known to like the taste of these unusual edibles.
On May 10th the company released its first-quarter 2022 results with net revenue increasing 99% year over year to $25 million. In addition, net revenue in Israel increased by 263% from the prior year to $9.1 million. The company sustained a net loss of $32.7 million in Q1 2022 an improvement of $129 million from Q1 2021. Gross profits of $6.9 million in Q1 2022 were primarily driven by increasing cannabis flower revenue in the ROW segment. Also important the company has an Adjusted EBITDA of negative $18.9 million in Q1 2022 and an improvement of $17.7 million year over year.
CRON Stock Performance
On May 13th CRON stock closed at $3.27, with a 52-week price range of $2.82-$9.42. CRON stock has a 12-month consensus forecast price target of $3.92 per share, according to CNN Business analysts. In this case, the projection represents a 19.54% increase over the stock’s most recent trading price of $3.27.
Being An Active Trader With Canadian Pot Stocks
At the present time, market volatility has made it difficult for investors to start positions long-term. Canadian LPs have been showing significant price fluctuations that could be better for short-term holds. It’s important to do your own research on a company and investigate press releases and earnings to find the top performers. In addition, many short-term traders use technical indicators and chart patterns to increase their chances of making profitable trades. As we start a new of trading these could be the top Canadian marijuana stocks for your watchlist.