Top Cannabis Stocks Before January 2022
As top marijuana stocks continue to show upward momentum to close December are you looking for cannabis stocks to buy? This month many pot stocks have reached new 52-week lows because of delays in Congress associated with federal marijuana legalization. One area of the cannabis sector that experienced extreme volatility in 2021 is marijuana penny stocks. After rallying in the first quarter many cannabis penny stocks have sustained significant declines as 2021 progressed.
Going into the last week of this year some top marijuana penny stocks are showing signs of recovering some of those losses. For those not familiar with penny stocks these are any stocks that trade under the $5 stock price. Known to be a higher-risk investment many active traders prefer to invest in them on a short-term basis. In general, some traders use day trading and swing trading methods to produce gains in this area of the market.
Because the stock prices are lower active traders can establish larger positions using less capital. This allows them to see gains from smaller moves in the stock’s price fluctuations. As we enter a new year the most of the best penny pot stocks seem to have already priced in the delays with federal cannabis reform. This could mean that top marijuana penny stocks begin trading on other fundamentals like strong earnings and revenue growth.
Investing In Penny Stocks And The Cannabis Industry
Before investing in any cannabis stocks, it’s always important to do your due diligence on a company. Researching a company’s financials and studying how the stock performs in the market can help you establish the best returns on your trades. Ultimately from current trading levels, many analysts are forecasting upside for top marijuana stocks. Let’s look at 2 top cannabis penny stocks for your watchlist in January.
Best Marijuana Penny Stocks To Watch In 2022
Jushi Holdings Inc.
Jushi Holdings Inc. is a US-based cannabis and hemp company that is expanding its presence in both the medicinal and recreational marijuana sectors. The company’s main goal is to build a portfolio of branded cannabis and hemp-derived assets for the American market. In the United States, Jushi runs 28 dispensaries under the BEYOND/HELLO brand. Jushi also has 31 retail licenses in the United States, and Beyond/Hello, its national cannabis dispensary brand, continues to expand both online and in-store. In October, Sunstream Bancorp Inc. offered a $100 million purchase facility to the company. Additionally, the company launched its second retail presence in Virginia.
In November, Jushi reported revenue of $54 million for the third quarter of 2021, up 116.7% year over year. The company’s net income increased from $68.2 million to $38.2 million. Furthermore, Jushi’s Adjusted EBITDA improved by 124.9 percent to $6.4 million in Q3 2020. As a result, the company earned $24.5 million in gross profit, increasing 99.6% year over year. In Virginia, the company also debuted new branded cannabis products. Jushi will debut its vaporizable cartridges, as well as its chewable line Tasteology, under the name The Lab. Jushi increased its Nevada presence in the third quarter by selling flowers in Virginia.
JUSHF stock is trading at $3.505 on December 27th down 14.94% in the last month. Currently, the stock has a 52-week price range of $3.09-$9.063 and is down 39.76% year to date. According to analysts at Tip Ranks JUSHF stock has a 12-month average price target of $7.31 per share. In this case, this represents an upside of 108.42% from its current trading price of $3.51.
Red White & Bloom Brands Inc.
Red White & Bloom Brands Inc. is a corporation aiming to be one of the leading multi-state cannabis operators in the United States. With retail sites in Michigan, Illinois, Massachusetts, Arizona, Florida, and California, the company is primarily expanding in the legal cannabis and hemp industries. To give an example, RWB purchased all of Acreage Holdings Inc.’s Florida businesses (OTC: ACRHF). RWB will now have eight retail outlets in great locations around Florida, as well as a 114,000-square-foot facility and a 400-square-foot office building. The business completed the purchase of a 45,000-square-foot greenhouse on 4.7 acres in Florida in August. While the company works on its 114,000 square foot facility in Sanderson, Florida, the acquisition offers near-term cultivation capacity.
In November RWB reported its third-quarter 2021 financials with revenue of $11.8 million up 93% year over year. The company’s EBITDA was $5.9 million for Q3 compared to a loss of $5.8 million in Q3 2020. RWB sustained a Q3 2021 net loss of $5.5 million compared to a loss of $9.5 million in Q3 2020. In Q3 year to date, RWB increased its revenue 386% year over year to $36.9 million. Also, important the company sustained a net loss for the nine months ending on September 30, 2021, of $73.8 million.
RWBYF stock is trading on December 27th at $0.3225 down 23.36% in the past month. The stock has a 52-week price range of $0.289-$1.65 and is down 43.64% year to date. According to analysts at Gov Capital RWBYF stock has a 1-year forecast of $2.04 per share. As the cannabis sector continues to show upside these could be top cannabis stocks to watch to end 2021.