Despite being one of the fastest-growing industries, cannabis stocks have shown a lot of market volatility recently. Somewhat surprisingly, earnings in the cannabis sector have declined for the past several months. However, investors are keeping an eye on marijuana penny stocks.
Penny stocks are stocks that trade under the $5 mark and are subject to significant price fluctuation. Currently, marijuana penny stocks frequently trade under the $1 range. These lower price points allow investors to leverage a larger position with less capital. As such, they are desirable as short-term stock purchases and popular with day traders and swing traders.
After a first quarter with significant upside, marijuana penny stocks have gone through several months of pullbacks and consolidation. Some cannabis penny stocks could be primed for gains. If you’re planning to invest, do your research.
Many investors and analysts anticipate an upswing for marijuana stocks as the prospect of federal cannabis reform and marijuana legalization seems more and more likely. Ancillary cannabis supplies such as smell-proof jars have also seen an uptick in sales.
Changes on the federal level could likely serve as a launching point for top marijuana penny stocks in 2021. With this in mind, we can research some cannabis stocks to add to your watchlist in August.
There are two marijuana penny stocks that should be at the top of every investor’s watchlist: Fire & Flower Holdings Corp. (OTC:FFLWF) and MedMen Enterprises Inc. (OTC:MMNFF)
Fire & Flower Holdings Corp. is a leading adult-use cannabis retailer with more than 85 corporate-owned stores. Fire & Flower recently entered into a strategic licensing partnership with American Acres giving them entry into the California, Arizona, and Nevada cannabis markets.
In the past month, the stock is down 11.99% and has a 52-week range of $0.70-$1.20. According to analysts at Tip Ranks, FFLWF stock has a 12-month price target of $1.60 per share –an increase of 113.33% from its last trading price of $0.75. FFLWF stock could be a top cannabis penny stock to add to your list over the weekend.
MedMen Enterprises Inc. is a cannabis retailer with an extensive selection of high-quality products and locations in California, Nevada, Illinois, and Florida. On July 30th, MMNFF stock closed at $0.2524 up 94.29% year to date and has gained 7.28% in the past five trading days. Analysts at Wallet investor project MMNFF stock has a 1-year forecast price of $0.37 per share making it another cannabis penny stock to watch this month.