Cannabis Stocks Show Momentum
Top marijuana stocks are showing tremendous strength closing the first week of trading in February. While federal cannabis reform continues to create positive sentiment across the marijuana sector many smaller cannabis companies are beginning to show momentum. Currently, marijuana stocks like Sundial Growers Inc. (NASDAQ: SNDL) have rallied in 2021 gaining triple digit percentage gains during the year.
In fact, many of the cannabis stocks trading under the $3 range have been showing similar trading patterns in 2021. At the current time, cannabis sales are accelerating across the U.S. and Canada. In essence, this is also creating revenue growth for cannabis companies which could deliver some better-than-expected results.
U.S. cannabis markets grew in December with ranges like 23% in Nevada and 42% in Oregon. Also, during the month Arizona medical cannabis sales were $91.6 million up 30% from the prior year. Even established markets like California saw sales grow 25% from 2020 with sales of $314.2 million in December. Another recreational market that continues to show growth potential in Colorado with sales increasing 34% from December of 2020. Additionally, new cannabis markets like Illinois which completed a full year of adult-use sales in December have seen 343% sales growth.
Cannabis Sales Continue to Increase In 2021
To Begin 2021 cannabis sales in the U.S. have continued showing increasing sales in states like Illinois. In fact, cannabis sales in January increased 94% from a year ago showing how this trend is extending into this year. With future growth evident in the cannabis industry, top marijuana stocks are closing the week near record highs in the market. But will marijuana stocks continue making gains in February?
One thing to keep in mind when dealing with the cannabis sector is its susceptibility to volatility they have in the market. In general pot stocks have been historically volatile this could still be the case for 2021. While marijuana stocks have momentum many day traders and swing traders are taking advantage of the price fluctuation.
Currently finding the right marijuana stocks to invest in could be difficult with so many of them trading so high in the market. But at the current time, it looks like cannabis stocks could continue to push higher. For the purpose of finding marijuana stocks that could hold value in next week’s trading. Let’s take a closer look at 2 marijuana penny stocks to watch under $1.
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