Five cannabis stocks to keep an eye on amid demand for pot products

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 Five cannabis stocks to keep an eye on amid demand for pot products
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Highlights

  • The Tilray, Inc. (NASDAQ: TLRY) stock rose by 52.11% YTD.
  • The stock of Sundial Growers Inc. (NASDAQ: SNDL) is up 41.78% YTD.
  • The net sales of Village Farms International Inc. (NASDAQ: VFF) were US$70.37 million in Q2, 2021.

Cannabis stocks are companies that develop and sell marijuana products. In addition, ancillary firms that invest or support operations of marijuana production also fall in this industry. The cannabis stocks have been on investors’ radar in recent months as the federal government moves to decriminalize the interstate marijuana trade. Many investors and analysts are optimistic about the industry and expect the Cannabis market to double in value by 2025.

Here explore five cannabis stocks that may benefit from changes in the federal law.

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Sundial Growers Inc. (NASDAQ: SNDL)


The Calgary, Canada-based company grows and manufactures cannabis products.

The company’s net revenue from the cannabis segment was US$9.2 million in Q2 of fiscal 2021. Its gross cannabis revenue rose by 8 percent YoY to US$12.7 million. Its net loss was US$52.3 million compared to a net loss of US$60.4 million in Q2 of FY 2020. The adjusted EBITDA loss was US$0.2 million against an adjusted EBITDA loss of US$3.9 million in the year-ago quarter.

The stock was trading at US$0.7671 at 1:42 pm ET on September 1, down 1.63 percent from its previous closing price. Its share volume was 110,022,100 on August 31.

Its market cap is US$1.58 billion, and the forward P/E one year is -9.75. Its EPS is US$-0.58. The SNDL stock rose 41.78 percent YTD. Its 52-week highest and lowest prices were US$3.96 and US$0.14, respectively.

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Cronos Group Inc. (NASDAQ: CRON)

Cronos is headquartered in Toronto, Canada, and engages in the research and production of cannabis products.

The company’s consolidated net revenue was US$15.62 million in Q2 of fiscal 2021, compared to US$9.88 million in the same quarter of the previous year. The company reported a gross loss of US$15.78 million in the period compared to a gross loss of US$2.92 million in Q2 of 2020.

Cronos’ net income was US$57.05 million against a net loss of US$106.97 million in Q2 of 2020.

The stock was priced at US$6.485 at 1:58 pm ET on September 1, down 1.89 percent from its previous closing price. Its share volume on August 31 was 1,741,587. The company has a market cap of US$2.42 billion, and a forward P/E one year of -17.86. Its EPS is US$-0.41.

Its 52-week highest and lowest prices were US$15.83 and US$4.92, respectively. The CRON stock declined 13.14 percent YTD.

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GrowGeneration Corp. (NASDAQ: GRWG)

GrowGeneration is based in Colorado and grows cannabis through a hydroponic system.

The company’s second-quarter FY 2021 revenue surged 190 percent YoY to US$125.9 million. Its net income rose 161 percent YoY to US$6.7 million. In addition, the company’s adjusted EBITDA was US$14.5 million, up 229 percent from the year-ago quarter.

The company has raised its revenue guidance for FY 2021. It expects revenue to be around US$455 million and US$475 million FY21.

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The GRWG stock traded at US$32.26 at 2:14 pm ET on September 1, up 0.84 percent from its closing price of August 31. Its share volume was 1,525,135 on August 31.

The market cap of the firm is US$1.91 billion, the P/E Ratio is 107.33, and the forward P/E one year is 69.54. Its EPS is US$0.30. The GRWG stock fell 18.16 percent YTD. The stock’s 52-week highest and lowest prices were US$67.75 and US$13.11, respectively.

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Tilray, Inc. (NASDAQ: TLRY)


Tilray manufactures cannabis products, and it is based in Nanaimo, Canada.

The company’s net revenue surged by 25 percent YoY to US$142.2 million in Q4 of FY 2021, compared to US$113.5 million in the same quarter of the previous fiscal year. Its net income was US$33.6 million compared to a net loss of US$84.3 million in the year-ago fiscal quarter.

Tilray’s adjusted EBITDA rose 285 percent to US$12.3 million in Q4 of 2021. Its gross profit fell by 19 percent to US$22.5 million compared to US$27.8 million in Q4 of the previous fiscal year.


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The stock traded at US$13.57 at 2:24 pm ET on September 1, down 0.88 percent from its previous closing price. Its share volume on August 31 was 20,161,000.

The company has a market cap of US$6.07 billion, and a forward P/E one year of -97.79. Its EPS is US$-1.87. The TLRY stock rose 52.11 percent YTD. The stock’s 52-week highest and lowest prices were US$67.00 and US$4.41, respectively.

Source: pixabay

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Village Farms International Inc. (NASDAQ: VFF)

The company is headquartered in Delta, Canada, and produces Cannabis products.

Village Farms’ net sales were US$70.37 million in Q2 of fiscal 2021, compared to US$47.57 million in the year-ago quarter. VFF’s net loss was US$4.51 million against a loss of US$0.11 million in the previous year's corresponding quarter.

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The stock traded at US$9.40 at 2:49 pm ET on September 1, down 2.69 percent from its previous closing price. Its share volume was 581,347 on August 31.

The market cap of the firm is US$801.73 million, and the forward P/E one year is -138.00. Its EPS is US$-0.04. The VFF stock fell 5.11 percent YTD. The highest and lowest stock prices in the last 52 weeks were US$20.32 and US$4.27, respectively.

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Bottomline

Currently, some 36 states in the US allow marijuana consumption and trade. The industry has been optimistic after the US lawmakers expressed willingness to revoke the banned status of marijuana under federal law. Currently, it is placed on the banned substance list.

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