Cannabis stocks 2021

With Biden making his way into presidency in 2021, the possibility of complete federal legalization has stirred investors. Shares in the Canadian pot industry have started to rise as short sellers have begun to cover their pitches against the stock. With the prices low and the possibility of a bullish movement high, now might be the best time for you to open your wallets and make a few investments. Read on to learn about the most undervalued cannabis stocks 2021.

Canopy Growth

First on our list is Canopy Growth. Formerly known as Tweed Marijuana Inc, is a cannabis company that is based in Toronto Canada. The company had a massive sell off recently and is still on its way to recovery. With the values being 40% lower than what it was in its 52 weeks of reign, it might be very profitable to cash in on some stocks.

Canopy Growth has managed to outdo the expectations of analysts. By the looks of it, the next 3 years will positively impact the growth of the company. With the cannabis market expanding as we speak, the management estimates a growth of nearly 40%-50% over the next 3 years. As of now the company still has not passed the margin of profit.

The company expects a positive jump in its adjusted EBITDA during the latter half of 2021. The exact value of its rise in adjusted EBITDA is 20% by 2024. The reduced headcount, diminishing expenses (SG&A) and the closures related to its production facilities could further rile up the adjusted EBITDA.

There are no worries of bankruptcy as the company had $1.59 billion as of 2020 December 31st. It has enough funds to back its projected growth and initiatives.

Aphria

Aphria is at an unusual spot. The cannabis company has shown positive adjusted EBITDA over the past 7 quarters. Aphria has managed to gain control of a significant portion in the Canadian consumer section. It is also strongly backed by its bud and vape segments. Aphria has also introduced topicals with higher potency in January. This could potentially increase its sales.

Aphria recently acquired a beverage company named SweetWater. There is a possibility of the company boosting its influence on the booming U.S market through this. With Aphria proposing a merger with Tilray, the combined resources could solidify their global market share. Thanks to the likeability of the two parties, in just two years the merge could save Aphria close to $100 million. Right now, Aphria is trading 44.5% lower when compared to its 52-week high. This makes it one of the best investments when it comes to cannabis stocks 2021.

Hexo Inc

Hexo is not yet up there with the big boys but it is a very promising name in the cannabis industry. The company as of yet does not have any partners in the U.S. It is more of an underdog in the cannabis industry.

But even though it is not a big name, we still think it is one of the best cannabis stocks 2021. Its stocks are inconceivably undervalued.

Due to the Covid-19 pandemic, every industry took a massive hit. Even before Covid-19 showed its face, Hexo inc was falling in value. The pandemic acted as a catalyst causing its value to decline even further. The exacerbation caused them to close out 2020 with a loss.

But things are looking up for Hexo right now. In the first 4 months of 2021, the company boasted a revenue of CAD 41.3 million. This is the best quarter that Hexo has ever experienced, the value clocks in at a growth of 114%. Hexo had continued to grow throughout 2020, increasing in stability. This makes it a prime example of an undervalued stock that has huge potential.

Did you find your choice amongst our picks for cannabis stocks 2021 when it comes down to investing? The cannabis market is in for a boom with lawmakers all across the U.S preparing themselves for an epic push towards legalisation. It is best to invest early before the values start to inflate.