With the United States set to legalize marijuana federally, year 2021 is likely to be a game-changer for the North American cannabis industry. The legalization will open up a range of prospects for the Canadian cannabis companies. Alongside, the US-based cannabis stocks will finally be able to list on home ground, leading to more exposure from Wall Street investors.
In the wake of this ongoing green wave, Canadian pot stocks such as Canopy Growth Corporation (TSX: WEED) and Aphria Inc. (TSX: APHA) have already started rising.
Here are the three Canadian Cannabis stocks to explore:
HEXO Corp (TSX: HEXO)
Current Stock Price: C$ 6.08
The Gatineau, Quebec-based company offers packaged cannabis goods. Stocks of the company have gained almost 48 per cent in the last three months, steered by the ongoing green wave. Its 30-day average stock trading volume stands at 1.6 million units.
In the first quarter of FY21 (ending October 31, 2020), the cannabis goods producer recorded net revenue of C$ 29.5 million, an increase of 9 per cent against Q4 FY20 and 103 per cent year-over-year (YoY).
In the last four trading days (Since January 5), the stock has gained over 30 per cent.
Canopy Growth Corporation (TSX: WEED)
Current Stock Price: C$ 38.40
The Smiths Falls, Ontario-based cannabis company expects to propel its global medical marijuana upon the US federal cannabis decimalization. WEED scrips have rallied over 61 per cent in the last three months. Its present 50-day average trading volume is approximately 1.9 million units. The stock is also offering earnings per share of C$ 0.59.
In its earnings for the second quarter FY21 (ended September 30, 2020), the company registered an adjusted EBITDA loss of 85.7 million in Q2 FY21 from a loss of 150.4 million in Q2 2020 led by better revenue and reduced expenses.
Aphria Inc. (TSX: APHA)
Current Stock Price: C$ 10.86
After merging with Tilary (TLRY:US/NASDAQ: TLRY), the company has already made its way to the US market. The pot stock has returned nearly 41 per cent in the last three months and 23 per cent in the last four trading days.
Its 30-day average volume has rushed to around 5 million units. It has a current price-to-cashflow ratio of 2681.60, driven by its merger with Tilray. The pot stock places among TMX’s top volume companies.
In the first quarter of FY21, the company posted net cannabis revenue of C$ 62.5 million, up 103 per cent from Q1 FY20.