Two cannabis companies are predicted to see continuing gains as the industry advances
With April trading now in full swing, certain cannabis stocks are beginning to see some upticks. There was a downtrend in the cannabis stock market that spread across February and March, but this is now turning around. Increased talk on improving cannabis laws, new states entering the market and possible reform taking place on Capitol Hill is giving the industry a boost. As the improvement continues, two companies stand out as ripe targets for investors.
HEXO Corp. is a name that is familiar to many investors already and has consistently received support from analysts. The Canada-based company has a number of subsidiaries and is involved in the cultivation, distribution and sale of cannabis. In a recent earnings release, it saw a net revenue increase of $32.8 million, 94% higher than what had been reported in the second quarter of last year.
At the beginning of 2021, HEXO’s stock increased from $4 to $7.21 in a two-week period. That represented an increase of 80%, but the stock has continued to improve. In the first ten days of February, it climbed 63% before dropping as the market stalled. With recovery now on the horizon, HEXO is expected to return to the same growth levels.
Planet 13 Holdings came onto the scene as the operator of the largest cannabis dispensary anywhere. The cannabis superstore, with the first introduced in Las Vegas, has become a popular target for both consumers and investors, and the company has watched as its stock continues to rise. A recent announcement that it is partnering with Curaleaf to offer some of the latter’s Select brand of products only fueled greater interest.
Over the last year, which included the announcement that a second superstore was going to be introduced in California, Planet 13’s stock has gained more than 500%. This year, for the first ten days of February, the stock increased by 55%, reaching $8.19. As is the case with HEXO, Planet 13 is now expected to see new all-time highs, possibly as early as this week.