TipRanks
2 cannabis stocks with strong buying and monster growth
Investors have been fixated on growth companies for the past year, and one segment that has been on the rise is the fledgling cannabis industry. The sector offers a unique proposition and the prospect of further growth as another important catalyst looms on the horizon that will completely transform the industry. As expected, a democratically-led Senate was good news for those looking to promote marijuana reforms at the federal level. And it looks like the expected changes may happen sooner than originally expected. With the support of Senate Majority Leader Chuck Schumer, the Democratic Senators have announced that they will push for marijuana legalization at the federal level and promise “a unified draft discussion across the board [cannabis] Reform ”in the first half of this year. The statement meets expectations that the majority in Democratic Congress will pass a law to legalize marijuana and sign President Biden. Investors are also considering further legalization measures at the state level. A key state in this regard is New York. So the cannabis industry is looking up. There is a growing network of state legalization regimes and the expectation of a change in federal policy. both are putting upward pressure on cannabis stocks. With that in mind, we used TipRanks’ database to find two cannabis stocks that were identified as “Strong Buys” by analyst consensus. Both have achieved impressive results since the beginning of the year and will continue to grow in the coming year. Village Farms International (VFF) We start with Village Farms International, a long-standing company in the niche farming business. The company started out as a farmer, producing high quality greenhouse vegetables for sale in the North American market year round. That background fit well with the company for a transition into the cannabis industry – Village Farms has experience in greenhouse production and industrial cultivation. Village Farms stocks have had a tremendous growth profile, up 327% in the past 12 months – with a sharp rise in the past few days. Two major news have accelerated the surge since late January. First, the company prepaid in full the $ 15 million debt it incurred during its November acquisition of cannabis grower Pure Sunfarms. Second, Village Farms increased its investment in Asian cannabinoid company Altum by 50% to maintain a 10% stake in the company. The move increases Village Farms’ international reach and ability to grow Altum stocks in the future. The company managed to fund those moves because it had a successful stock sale in January, launched an additional 10.8 million shares, and raised $ 135 million in new capital. In addition to its strong capital and expansion positions, Village Farms reported solid financial results. The company had revenue of $ 43 million for the third quarter of 20, up 12.5% year over year. Earnings per share were 1 cent per share, a reversal from the $ 0.10 loss in the year-ago quarter. Eric Des Lauriers, 5-Star Analyst, reports on Village Farms for Craig-Hallum: “Village Farms has clearly established itself as the leading cannabis producer in Canada with the # 1 brand share and industry leading profitability. Canadian cannabis sales rose 128% year-over-year from 2020 through October (last available) and the number of pharmacies will accelerate through 2021, giving tailwinds to VFF revenues. “Regarding the US markets and VFF’s position in Canada’s larger neighbor, the analyst adds,” With 5.7 million SF greenhouses in TX, the company also has a real US option that is being sought after by investors GA elections are finally appreciated. The VFF has historically been undervalued relative to less profitable peers, but we expect stocks will continue to run higher … as the prospect of US reform increases later in the year. “To that end, Des Lauriers is giving VFF a buy, and its target price of $ 25 suggests the stock has room for ~ 26% upside over the coming year. (To see Des Lauriers’ track record, click here.) There are a total of 3 recent ratings of VFF stock and all of them are buys, giving the stock a consensus rating by Strong Buy analysts and general agreement on the stock Wall Street shows about the company’s strengths. The stock is trading at $ 19.90, and the average target price of $ 24.33 implies an upward movement of ~ 23% for the year ahead. (See VFF stock analysis on TipRanks) TerrAscend Corporation (TRSSF) The next marijuana stock we look at, TerrAscend, is another major cannabis producer in the US, Canada and Europe. Active in both the medical and the recreational side of the market, the company builds and manufactures cannabis and markets a range of products under numerous brand names. TerrAscend’s US operations are located in California, Pennsylvania, New Jersey and Utah. The company plans to expand as more states legalize cannabis. A strong sign of the strength of the cannabis industry, TRSSF stocks are up a sky-high 624% over the past 12 months. Growth was driven by expanding cultivation activities in California and Pennsylvania and entering the adult recreational market in New Jersey. Last month, TerrAscend completed an unmediated sale of private placement shares, bringing more than 18 million common shares to the market. The sale price was $ 12.35 ($ 9.72) and the offering raised $ 224 million ($ 176.3 million). Most of the proceeds – around 80% of the total – were generated by four large institutional investors based in the USA. The funds raised will be used to further expand the company’s cultivation (TRSSF plans to expand cultivation and manufacturing operations in New Jersey) as well as to continue merger and acquisition activities. TerrAscend’s rapid growth and strong future prospects have drawn the attention of top analysts, including 5-star analyst Eric Des Lauriers of Craig-Hallum (see above). “TerrAscend is a leading multi-state operator (MSO) in the US cannabis market with world-class management, assets and access to deal flow. We have been optimistic about the company since we began reporting last year and are excited to announce the TRSSF “The team exceeded our expectations and achieved a rapid increase in margins and operational leverage that have earned them a solid place in the top tier of MSOs,” said Des Lauriers. The analyst summarized: “[With] Over $ 280 million raised since the elections and federal reform is faster than expected. We believe TRSSF deserves a Peer Bonus. “Consistent with his bullish comments, Des Lauriers is pricing TRSSF stock with a buy and has a target price of $ 20, which implies a ~ 31% upside potential over the next 12 months. We are looking at another stock with broad approval from Wall Street- The consensus rating for strong buy is unanimous, based on 7 most recent valuations. Stocks sell for $ 15.30 and $ 15.30 Their recent appreciation has brought that price close to the average target price of $ 15.43. See TRSSF stock analysis on TipRanks.) To find great ideas for trading cannabis stocks at attractive valuations, visit TipRanks ‘Best Stocks to Buy, a newly launched tool that brings together all of TipRanks’ equity insights. Disclaimer: The one in this one The opinions expressed in articles are solely those of the analysts featured. The content is intended for informational purposes only. It is very important that you review your articles make your own analysis before any investment.
