Cannabis & Hemp Stocks Investment Tools – Schedule Demo Now!

Harvest Health: This Cannabis Stock Could Gain 50% in 2021

The rise in the legalization of cannabis across US states has been a very promising trend for the sector. Several pot stocks have gained momentum in the second half of 2020 after consumer demand normalized post COVID-19 induced lockdowns and more recently due to a Joe Biden win. There are several cannabis stocks that should continue to gain in 2021 and one such company is Harvest Health and Recreation. Headquartered in Arizona, Harvest Health and Recreation Inc. (OTC: HRVSF) deals in cannabis-based products. With a market capitalization of about $781 million, the stock has been continuously rising since March 2020 – but why does this cannabis stock have the potential to gain 50% in 2021?

HempFusion TSX CBD Hemp Stocks

While losing 12% on a year-over-year basis and 39% on a year-to-date basis, Harvest Health stock has since gained 328% and is now on track for significant growth in 2021.

Symbol Name Last Price Change % Change

HRVSF: Strong Financial Results

Bottom Line: Should I Buy this Cannabis Stock Now?

Harvest Health and Recreation had a good quarter. Revenue for the September quarter saw a whopping 86% rise against last year and an 11% rise compared to Q2. EBITDA for the quarter was $10.5 million against $4.1 million of the previous quarter and an EBITDA loss of $10.9 million for the same period of last year.

However, the company couldn’t post profits this time either, although losses did reduce to a large extent. It recorded a net loss of $2.1 million ($0.01 per share) while Q3 2019 and Q2 2020 showed losses of $39.1 million ($0.09 per share) and $18.3 million ($0.05 per share), respectively.

The cost control measures and strategic investments and divestments made by the company have started yielding results. Harvest health is expecting revenue of $225 million for the fiscal year 2020 and going by the company’s current trend, a profitable 2021 could be on the cards.

Opportunities on the Horizon for Harvest Health

Harvest Health Cannabis Stock

The recent wave of legalization of recreational cannabis across the U.S. is catalyzing Harvest Health’s growth by opening up new avenues for the cannabis giant. During November 2020 states like Arizona, Montana, New Jersey, and South Dakota voted for legalizing marijuana in some form or the other.

While this move was beneficial for the marijuana industry in general, Harvest Health benefited particularly since it has around 40% of its outlets, or about 15 of them, are based in the Arizona region. It has been assessed that at maturity Arizona’s legal cannabis market is likely to reach $2 billion with recreational cannabis sales reaching $375 million – $400 million by the end of the first year and $700 million – $760 million by 2024.

HempFusion TSX CBD Hemp Stocks

The company has an established presence in the Arizona region and while this transition from medical-only to medical as well as recreational marijuana takes place in the state, it can significantly expand its operations over there. Also, the increased revenue earned as a result of this transition can be used in making other expansions across the US and other regions.

Harvest Health: A Huge Upside for this Cannabis Stock

4 Top Ancillary Cannabis & Hemp Stocks for 2020

The pandemic has impacted the global cannabis market and even many big players lost significant value. Contrary to that trend, Harvest Health not only survived the crisis but has emerged stronger thanks to measures implemented by the management.

This quarter saw dramatic changes in Harvest Health’s way of operations. A notable measure was divesting heavily from the dispensaries and non-value-adding assets that are no longer a part of its core operations. This move enabled it to focus more on the actual value-adding operations that may have put it on the path to profitability. Also, the continuous stress on the importance of containing the operating costs and cost structures proved beneficial thus helping it lean more towards profitability.

HempFusion TSX CBD Hemp Stocks

The stock is currently trading at   ( ) and analysts have given Harvest Health a price target of $3.17, an upside of nearly 50%. This target is because of the measures that the company has put in and has succeeded in getting a satisfying result. Harvest Health’s future looks green and the cannabis stock has a potential upside in the coming years. Although it is not yet profitable, it is a strong buy for those investors seeking long-term investment opportunities in the cannabis industry.

Harvest Health: This Cannabis Stock Could Gain 50% in 2021

About Cannin: Your Cannabis Stocks Resource

Hemp Stocks CBD Stocks Free Stock TipsCannin is your #1 trusted resource for cannabis stocks. Our global team of experts evaluates all emerging cannabis stock investing opportunities. We aggregate hundreds of hours of financial research and provide tips on the best cannabis stocks for 2020. 

Use Cannin as your resource for:

Market analysts expect the marijuana and hemp industry will have an annual value exceeding $75 Billion in the next decade. Is it too late to invest in marijuana stocks? No! This is the perfect time to invest.

Are you looking to buy stock in hemp companies or marijuana companies for 2020? Interested in new penny hemp stock companies? Looking for the best Canadian cannabis stocks to invest in? Looking to leverage the power of algorithmic stock trading to beat the cannabis market? We can help.

Are you interested in cannabis stocks like Curaleaf, Trulieve, Aurora Cannabis, Charlotte’s Web, Canopy Growth, or Hemp Inc.?

Predict price movements of cannabis stocks several hours in advance with our proprietary algorithmic stock trading software.

  • +25% Gains in 2020
  • +49.8% Gains in 2019
  • Backtested since 2012

We’re so confident you’ll love our algotrading cannabis stock signals, we’re willing to give you a one-month risk-free trial to see it for yourself.

Profit from the best cannabis stocks – we’ll show you how at