The following explains how stocks of Tilray, sundial and other materials are accumulated.

Although marijuana stocks have often traded in tandem when moved by sentiment, many of these actions have had varying degrees of success. Some investors are looking for publicly traded funds to bet on a wider basket of pot stocks. He

ETFMG Alternative harvest ETF

(MJ), which has exposure to marijuana companies, fell 24% on Thursday, almost to levels below the start of the week. But this ETF does not include U.S. multistate operators (MSOs), which must be listed without a prescription in the U.S. because they are selling a product where it is federally illegal. He

Advisorshares ETF Pure Cannabis

(YOLO) includes US MSO.

Below are some of the largest individual stocks and what analysts anticipate. It’s not an exhaustive list, as there are more than a hundred public actions related to the cannabis business.

Tilray (TLRY) and Aphria (APHA)

Tilray

and Aphria announced a merger in December. Aphria CEO Irwin Simon plans to close the deal during the first half of this year. An investor would receive about 0.84 shares of the combined Tilray for every share of Aphria he owned. Aphria has a recent market capitalization of $ 8.3 billion, compared to Tilray, of $ 10.1 billion.

Tilray entered the year with a high short interest rate of around 48% of the shares available for trading, according to data from S3 Partners. This has dropped to the recent 23%. Aphria’s short-term interest is approximately 7.4% of the shares available for trading, 16% lower than at the beginning of the year. When investors sell a short stock, they sell a borrowed stock in the hope of being able to return it by buying the shares at a lower price. When a large number of short sellers rush to cover and avoid additional losses, it can increase stocks.

For Aphria, analysts expect the company to end fiscal year 2021 in May with sales of $ 534.8 million for the full year. Sales are expected to grow to $ 710.3 million in 2022. On the other hand, Tilray ended its last fiscal year in December. Analysts expect the company to report full-year sales of $ 208 million, up from $ 277.8 million this year. Of course, the merger will cloud powerful estimates.

According to FactSet, the average valuation of Tilray analysts is Hold, although the average target price is only $ 12.20. Aphria’s average rating is overweight, but the average target price is $ 12.60.

Sundial Manufacturers (SNDL)

The sundial, which was once traded above $ 11, has fallen into penny status. In February last year, the main management team resigned. The company had issues that included half a ton of cannabis rejected by a customer due to poor quality, MarketWatch reported. Earlier this month, Sundial announced a capital increase that pushed shares down.

Shares rebounded this month amid interest from retailers, which have risen 403% from the current date. Its market value is $ 4.3 billion after Thursday’s decline. Analysts expect sales to reach $ 53.1 million for the full year 2020. Consensus estimates call for $ 62.6 million in 2021.

Aurora Cannabis (ACB)

Aurora Cannabis

previously it was one of the most proprietary shares of Robinhood. But the company, for several quarters, has struggled to make positive adjusted profits before interest, taxes, depreciation and amortization. A new CEO and some significant cost reductions have helped, but analysts have not won. None of the 17 analysts listed by FactSet have a buy rating, while four analysts recently rated it as a sale. The average target price of $ 9.07 is below recent levels.

The company has a market capitalization of $ 3.7 billion. Analysts do not forecast a profitable fiscal year in the coming years. According to FactSet, the consensus estimate calls for a net loss of $ 1.16 per share for the fiscal year ending June. In terms of sales, analysts predict that the company will reach $ 227.4 million by 2021, which will end in June. They anticipate that sales will increase to $ 303.3 million in fiscal 2022.

Canopy Growth (CGC)

Canopy growth

has a recent market capitalization of $ 19.7 billion. Brewer

Marks of constellations

(STZ) has a controlling stake in Canopy. The producer also has an agreement with Acreage Holdings that would allow it to enter the U.S. cannabis market, but the merger itself is triggered by regulatory changes that would allow it to do so.

The company has a market value of about $ 19.7 billion. Analysts expect sales of $ 441.4 million for fiscal year 2021, which will end this March. They expect it to grow to $ 639.9 million in fiscal 2022.

Cronos Group (CRON)

Cronos Group

it was one of the few profitable Canadian cannabis companies in 2019 and investors expect it to continue in 2020, with estimates calling for earnings of 3 cents per share. But consensus estimates expect a net loss of 24 cents per share during fiscal 2021.

The company received $ 1.8 billion from the tobacco giant

Altria Group

(MO) in 2018 with a 45% stake. Unlike competitors, the company has been conservative with its war chest. At the end of September it still had $ 1.3 billion in cash and short-term investments. On the other hand, analysts predict that sales will only reach $ 43.8 million in 2020 and expect them to grow to $ 86.9 million in 2021.

Multistate operators in the United States

While recent pressure on pot stocks has been spurred by a shift in political winds to U.S. producers selling marijuana, they have actually lagged behind their Canadian counterparts in recent months. Said Pablo Zuanic, an analyst at Cantor Fitzgerald De Barron he believes that “the major U.S. MSOs are attractively valued with a long-term vision, although they will gain a share of the Canadian investment stream.”

Among the big names in the United States are

Curaleaf Holdings

(CURLF),

Green Thumb Industries

(GTBIF),

Cresco Labs

(CRLBF) i

Trulieve Cannabis

(TCNNF). Zuanic has an overweight rating on these stocks, while it has a neutral score on most big Canadian names. US $ 22.1 billion cannabis sales project in 2021, $ 28 billion in 2022 and $ 49 billion in 2025.

Write to Connor Smith at [email protected]