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If you’re looking to invest in cannabis stocks in 2021, you’ll want to read this blog post. We’ll cover some of the best performers in the industry and give you our top pick for the best cannabis stock for 2021.
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Aurora Cannabis (ACB)
Aurora Cannabis (ACB) is a top choice for investors looking for the best cannabis stock for 2021. The company has a strong management team, a large market share, and a good growth potential. Aurora Cannabis is also a vertically-integrated cannabis company, which means it is involved in all aspects of the cannabis industry from cultivation to retail.
Overview
Aurora Cannabis (ACB) is a Canadian cannabis company that produces and sells medical cannabis. Aurora Cannabis is one of the largest cannabis companies in the world, with a market capitalization of over $6 billion. The company is headquartered in Edmonton, Alberta, and has operations in 25 countries.
Aurora Cannabis was founded in 2013 by Terry Booth and Steve Dobler. The company went public on the Toronto Stock Exchange in October 2016. Aurora Cannabis trades under the ticker symbol ACB on both the TSX and the New York Stock Exchange.
Aurora Cannabis is one of the leading producers of medical cannabis in Canada, and its products are sold in nine countries. The company has two production facilities in Alberta, Canada, and one each in Quebec and Ontario. It also has a joint venture facility in Denmark. In addition to dried cannabis, Aurora Cannabis produces cannabis oils and capsules, as well as hemp-based foods and beverages.
The company has partnerships with several major organizations, including Coca-Cola (KO), Canopy Growth (CGC), Tillsonburg Custom Packaging Solutions, McKesson Canada, Alfred Pedersen & Son, Radient Technologies, Hempco Food & Fiber Inc.,and MedReleaf Corp. (LEAF). In 2018, Aurora Cannabis acquired MedReleaf Corp., a Canadian licensed producer of medical cannabis, for $3.2 billion. The acquisition made Aurora Cannabis the largest cannabis producer by market capitalization.
Aurora Cannabis has been aggressively expanding its operations globally. In 2019, the company acquired South America-based Farmacias Magistrales SA, which gave it a foothold in the Latin American medical cannabis market. In 2020, Aurora Cannabis acquired CanniMed Therapeutics Inc., another Canadianlicensed producer of medical cannabis for $1 billion. These acquisitions have helped position Aurora Cannabis as one of the leading global players in the medical cannabis industry
Growth Prospects
In 2021, Aurora Cannabis is expected to return to growth as the industry recovers from the pandemic. The company should benefit from strong demand for its products in Canada and international markets. In addition, Aurora Cannabis is well positioned to capitalize on the growing U.S. market for cannabis products. The company has a partnership with Hempco Food and Fiber, which gives it exposure to the U.S. market. Aurora Cannabis also has a joint venture with Sonoma Pharmaceuticals, which is developing products for the U.S. market.
Risks
While Aurora Cannabis has been one of the top-performing cannabis stocks over the past year, it is not without risks. The company is still losing money, and its revenue growth has slowed in recent quarters. In addition, Aurora Cannabis faces stiff competition from other large cannabis companies, such as Canopy Growth and Tilray.
Aurora Cannabis also has a high level of debt, which could put pressure on the company if its financial situation worsens. Finally, Aurora Cannabis’ stock is very volatile and could fall sharply if investors lose confidence in the company’s ability to turnaround its business.
Canopy Growth (CGC)
Canopy Growth (CGC) is one of the leading cannabis companies in the world and is a great choice for investors who are looking to get into the industry. The company has a strong management team, a diversified product portfolio, and a proven track record of success.
Overview
Canopy Growth Corporation, together with its subsidiaries, engages in the production and sale of medical cannabis in Canada. The company offers dry cannabis and oil products primarily under the Tweed, BLACK LABEL, Spectrum Cannabis, DNA genetics, Leafs By Snoop, CraftGrow, and Foria brand names. It also sells its products through online. The company was founded in 2014 and is headquartered in Smiths Falls, Canada.
Growth Prospects
Canopy Growth is a Canadian cannabis company that was founded in 2014. The company is one of the largest cannabis companies in the world, with a market capitalization of over $12 billion. Canopy Growth is the largest producer of cannabis in Canada, and has operations in 11 countries across 5 continents.
In 2018, Canopy Growth became the first cannabis company to be listed on the New York Stock Exchange. The company has since partnered with global brands such as Constellation Brands, Sinclair Broadcast Group, and Martha Stewart.
Canopy Growth has plans to expand its international footprint and grow its product portfolio. The company recently acquired U.S.-based Acreage Holdings, which gives it a strong presence in the U.S. market. Canopy Growth is also expanding into the CBD market with its acquisition of Colorado-based Charlotte’s Web Holdings.
The company’s growth prospects are strong, and it is well-positioned to capitalize on the global growth of the cannabis market.
Risks
Cannabis stocks offer investors high growth potential, but they also come with a high degree of risk. Among the risks associated with investing in cannabis stocks are:
-The industry is still in its early stages of development and is subject to change
-Many countries have not yet legalized cannabis, which could limit the growth of the industry
-Cannabis companies are not yet profitable and may never become profitable
-The stock prices of cannabis companies are highly volatile
Tilray (TLRY)
Tilray Inc. (NASDAQ: TLRY) is a Canadian pharmaceutical and cannabis company with its headquarters in Nanaimo, British Columbia. It is a vertically integrated company, meaning it is involved in the production, distribution, and sale of cannabis products. Tilray was the first cannabis company to trade on a major U.S. exchange. The company went public on the Nasdaq in 2018.
Overview
Cannabis stocks have been on a tear in 2020, with the industry benefiting from tailwinds including decriminalization, legalization, and investor interest. And while there are a number of compelling investment opportunities in the space, one that stands out is Tilray (NASDAQ: TLRY).
Tilray is a Canadian-based cannabis company that cultivates, manufactures, and sells a wide range of cannabis products in countries around the world. The company has seen rapid growth in recent years, and its shares have skyrocketed as a result.
Tilray’s product lineup includes dried flower, pre-rolled joints, oils, capsules, and more. The company also has a growing lineup of branded products, including High Park (a premium adult-use cannabis brand), Leafly (a leading cannabis information resource), and Manitoba Harvest (a leading hemp food brand).
In addition to its strong product portfolio, Tilray has also been investing heavily in research and development. The company’s R&D efforts are focused on developing new cannabis strains and products, as well as improving existing ones.
Tilray’s impressive growth prospects make it an intriguing investment opportunity for long-term investors. And with the stock trading at just $15 per share, there’s still plenty of upside potential for patient investors.
Growth Prospects
Tilray is a Canadian cannabis company that became the first pot stock to trade on a U.S. exchange in 2018. The company focuses on the production and distribution of medical cannabis products and also has a line of CBD products for pets. Tilray’s growth prospects are strong, with the company recently reporting its seventh consecutive quarter of positive Adjusted EBITDA. The company is also expanding its international operations, with plans to enter the European Union and South America in the near future. While Tilray is not yet profitable on a GAAP basis, it is well-positioned for long-term growth and is one of the best-performing cannabis stocks over the past year.
Risks
Like any other investment, purchasing stock in a cannabis company comes with its own set of risks. While the industry is still in its infancy, there are a few key risk factors to consider before investing in any cannabis stock, including:
-The potential for over-regulation by governments – Many countries have yet to fully legalize cannabis, and there is always the potential for governments to impose stricter regulations that could negatively impact the industry as a whole.
-The risk of supply shortages – Due to the fact that cannabis is still illegal in many parts of the world, there is always the risk of supply shortages that could lead to higher prices and lower profits for companies operating in the space.
-The potential for negative public opinion – There is still a significant portion of the population that views cannabis as an illegal drug, which could lead to negative public opinion and decreased demand for products.
Aphria (APHA)
Aphria (APHA) is one of the leading cannabis companies in the world with a strong presence in both the medical and adult-use markets. The company has a diversified portfolio of products and brands that cater to different segments of the cannabis market. For 2021, Aphria is one of the best cannabis stocks to buy with a strong growth potential.
Overview
Aphria is a Canadian cannabis company that produces and sells medical and recreational marijuana products. The company is headquartered in Leamington, Ontario, and has operations in Canada, the United States, Germany, and Argentina. Aphria is a publicly traded company listed on the Toronto Stock Exchange and the New York Stock Exchange.
Aphria was founded in 2014 by Cole Cacciavillani and John Cervini. Cacciavillani and Cervini were former greenhouse operators who saw the opportunity to enter the legal cannabis market in Canada. Aphria became one of the first licensed producers of medical cannabis in Canada. The company was one of the first to receive a license to produce recreational cannabis when it became legal in 2018.
Aphria has been profitable since 2016. The company reported revenue of CAD$873 million in 2020. Aphria’s main competitors are Canopy Growth, Aurora Cannabis, and Tilray.
In December 2020, Aphria completed the acquisition of U.S.-based sweetened beverage manufacturer Sweetwater Brewing Company for CAD$300 million. The acquisition gives Aphria a manufacturing facility in the United States and a distribution network across 28 states.
Growth Prospects
Aphria (APHA) is a Canadian company that produces, supplies, and sells medical cannabis. The company is one of the world’s leading cannabis companies with operations in 10 countries across five continents. Aphria has a diverse product lineup that includes dried cannabis, cannabis oils, and vaporizer products. The company also offers CBD products in the United States through its subsidiary Zenabis.
Aphria has experienced rapid growth in recent years and is well-positioned for continued growth in the future. The company’s growth prospects are driven by several factors, including the expanding global cannabis market, Aphria’s strong brand recognition, and its diversified product portfolio.
The global cannabis market is expected to grow at a compound annual rate of 22.6% between 2020 and 2025, reaching $66.3 billion by 2025 (New Frontier Data). This rapid market expansion provides considerable opportunity for Aphria to continue its growth trajectory.
Aphria has a strong brand that is recognized around the world. The company was ranked as the #1 trusted Canadian cannabis brand in a study conducted by Canaccord Genuity in 2019 (Canaccord Genuity). This study surveyed 3,000 adult Canadians who had used cannabis in the past three months and found that Aphria was the most trusted Canadian cannabis brand among respondents.
In addition to its strong brand recognition, Aphria also benefits from a diversified product portfolio that includes medical and adult-use products. The company’s medical products are sold under the brands Solei, Symbl, and Cannabis Rewards while its adult-use products are sold under the brands Good Supply Co., Broken Coast Cannabis Co., Solei Free, and Riff. This diversification provides Aphria with multiple avenues for growth as the global cannabis market expands.
Risks
All investments come with risks, and cannabis stocks are no different. Perhaps the biggest risk for Aphria and other pot stocks is regulatory. The Canadian government recently announced that it will be legalizing edibles, topicals, and extracts this fall, but it’s still illegal to sell these products in the United States. That said, the U.S. Food and Drug Administration is currently reviewing applications for cannabis-based drugs, which could lead to federal approval in the near future.
Other risks for Aphria include a potential slowdown in the Canadian cannabis market and stiff competition from larger rivals such as Canopy Growth (CGC) and Aurora Cannabis (ACB). Aphria also has a higher debt-to-equity ratio than its peers, which could make it more vulnerable to a downturn in the global economy.
Cronos Group (CRON)
Cronos Group (CRON) is a leading player in the global cannabis industry. The company focuses on the production and distribution of medical and recreational cannabis products. Cronos Group has a strong presence in the Canadian and Australian markets. The company’s stock has been on a tear in recent months, and it is one of the best-performing cannabis stocks in 2021.
Overview
Cronos Group is a leading global cannabis company with a powerful presence in multiple countries across the world. The company’s mission is to serve as the partner of choice for the global cannabis industry. With a strong focus on quality and innovation, Cronos Group is building an ecosystem of products and services to meet the needs of the modern consumer.
Cronos Group’s two flagship brands are Peace Naturals and Original BC Bud. Peace Naturals is a leading provider of medical cannabis in Canada, and Original BC Bud is a premium recreational cannabis brand in British Columbia, Canada.
In addition to its two flagship brands, Cronos Group has a portfolio of other brands including Ace Valley, Spinach, Lord Jones, and Happy Dance. These brands are available in select markets across the globe.
Looking ahead, Cronos Group is focused on three key areas: expanding its international footprint, launching new products and brands, and investing in R&D to bring innovative new products to market. With a strong foundation in place, Cronos Group is well-positioned to continue its growth trajectory and build value for its shareholders over the long term.
Growth Prospects
Cronos Group (CRON) is a leading player in the global cannabis industry with a diversified portfolio of products and operations across several jurisdictions. The company has experienced rapid growth in recent years and its share price has soared accordingly.
Looking ahead, Cronos Group is well positioned for continued growth as the legal cannabis market expands globally. The company’s strong financial position, experienced management team, and market-leading position in key markets positions it well to capitalize on opportunities as they arise. As such, Cronos Group is an attractive option for investors seeking exposure to the growing legal cannabis industry.
Risks
While Cronos Group may have some upside potential, it also comes with some risks that investors need to be aware of. First and foremost, the company is still loss-making, and its revenues are only a fraction of its expenses. This means that it could take some time for the company to become profitable, if ever.
second major risk is that Cronos Group is heavily reliant on a single product, Cannabis 2.0 products, for its growth. If this product fails to live up to expectations, or if the demand for it starts to decline, Cronos Group’s growth could stall.
Thirdly, Cronos Group’s share price is currently quite high, and it may be difficult for the company to continue to grow at such a rapid pace. This could mean that Cronos Group’s share price corrects in the future, which could lead to investors losing money.
