While marijuana isn’t going to be legal in America anytime soon, the passage of the MORE Act in the House of Representatives reminds us that Canada is at the mercy of changing political tides in the United States and elsewhere.
Many believe this could create a new level of competition for Canada, posing a threat to the country's status as the world's largest marijuana exporter.
It is estimated, however, that Canada's recreational marijuana sales could reach C$5 billion in 2022, which is a 19% jump over last year's figure, according to a new report from ATB Capital Market.
This is why some investors are bullish on relatively well-performing Canadian pot stocks, all of which can be bought for less than $10.
As they regain their strong positions following the emergence of many U.S.-based marijuana companies, they could gain even more momentum than before, allowing investors to benefit.
Let's check out what these popular Canadian cannabis stocks have been up to and whether or not they are worth adding to your watchlist.
3 Hot Canadian Stocks
Aurora Cannabis (TSX:ACB)(NYSE:ACB)
Headquartered in Edmonton, Alberta, Aurora Cannabis is one of the global leaders in the cannabis industry, meeting demands in both the consumer and medical markets.
The company has advanced their premiumization strategy by acquiring Thrive Cannabis and its award-winning Greybeard Brand.
By placing the Thrive team in charge of Aurora's Canadian recreational portfolio, as well as its portfolio of innovative premium products including dried flower, pre-rolls, vapor products, and concentrates, the $38 million acquisition will help Aurora gain a stronger position in the Canadian market.
Aurora Cannabis (TSX:ACB)(NYSE:ACB) reported $137 million in 2021, proving that the Canadian marijuana market remains strong enough to brace for soon-to-come American competition.
Tilray (TSE:TLRY)(NASDAQ:TLRY)
Tilray, Inc. is a Canadian pharmaceutical company that produces cannabis-derived medicines, drus, drops, and oils.
In a deal first announced last month, Tilray (TSE:TLRY)(NASDAQ:TLRY) signed a definitive agreement with rival Hexo Corp. whereby Tilray will acquire US$193 million in outstanding senior secured convertible notes issued by Hexo and held by funds affiliated with HT Investments MA LLC.
Based on their new financial report, if all strategic plans go according to plan, the company will reach $4 billion in revenue by the end of fiscal year 2024, which is a stunning outlook.
GrowGeneration Corp. (NASDAQ:GRWG)
GrowGeneration Corp. owns and operates specialty retail hydroponic and organic gardening stores across the country.
For the full year 2021, revenue increased by 119% to $422.5 million, up by 46% to $90.6 million in the fourth quarter of 2021, and net income for the full year was $12.8 million, compared with $5.3 million for the prior year.
Takeaway
The cannabis industry may face more international competition in the future, but Canada's marijuana sector is still strong, which is why many top pot stocks have not yet reached their potential.
Would it make sense to put any of the recommendations on your watchlist? Let us know in the comments!
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