The first month of 2022 has seen marijuana stocks trending towards new lows. This feels like a continuation of 2021, after the cannabis sector began a decline after record highs in February of last year.
The government’s deferral of federal cannabis reform is the leading cause of the downward stock trends, and with continued stalling, cannabis stocks are supposed to continue in that direction.
Low stock prices allow investors interested in trading in the cannabis sector to get in at the ground floor. Here are two stocks to put on your watchlist as prospective substantial investments as we enter the month of February.
A quick disclaimer: before you purchase any stocks, it’s important to do your research on individual companies. From there, you can make the most informed decisions for you and your investments. Following trends and learning to read the market is invaluable to potential investors.
CGC is based out of Canada and has become one of the country’s biggest distributors and makers of cannabis-based products. CGC has been rapidly expanding its portfolio; in 2021, it signed a distribution deal with a U.S.-based company.
They have also continued to grow the company in Canada, adding the premium cannabis company, The Supreme Cannabis Company, to their portfolio. One of the best business moves CGC rolled out was introducing the Whisl.
The Whisl is a CBD vape pen specifically designed to help improve someone’s mood. On November 17, CGC also announced the addition of ten new strains of flower across two of their companies. Previously, another Canadian cannabis business, Village Farms International Inc., had its stock perform better than some top global stocks.
CNN’s stock analysts predict that CGC has a 12-month median price target of $9.57 a share. This is a projected 29.31% increase from the last trading price – $7.36 on January 25. This expected rise is a reason CGC stock is one to watch.
IMCC operates out of three countries: Germany, Israel, and Canada. IMCC is a pioneer in the medical and recreational cannabis industries; their gross margin increased to 20%, and that upward projection is expected to continue in 2022.
In December 2021, the corporation brought the WAGNERS Brand to Germany, bringing high-quality Canadian marijuana to Germany. IMCC also recently partnered with cbdMD Inc. to promote products in Israel. With the expansion and continued partnerships in multiple countries, IMCC will expand its holdings and profit.
TipRanks analysts believe that the IMCC stock has a 12-month average price target of $7.32 a share. Since it was last traded at $2.01 when it closed on January 25, this would be an increase of 255.34%. This price is perfect for ground-level investors.
Both CGC and IMCC have traded down in the past five trading days, but their projected growth in the next 52 weeks makes them ones to watch. The low prices also make them an easy buy for buyers interested in dipping a toe into the cannabis stock sector. As we move into February, keep these on your watchlist.