Top 10 Marijuana Stocks to Watch in May 2021

I’m watching these 10 marijuana stocks for big, meaty moves…

But most of these beaten-down weed stocks need a big catalyst to get them moving. That’s what this niche thrives on — sector momentum and hype.

Regular company press releases aren’t creating big spikes. That’s why I want to see big news on a federal level to inject life into these stocks…

Could the SAFE Banking Act be just what this sector needs to heat up?

The bill was approved by the House on April 20, and it’s on its way to the Senate for approval.

It could be a game-changer for this niche — opening doors for marijuana companies to grow, access cash, and acquire property.

But I won’t jump to conclusions or try to predict the market … Here’s what I’m watching and why…

Should You Trade Marijuana Stocks?

First, you should NEVER blindly trade someone else’s picks. Not even mine.

I want you to understand how to choose stocks to trade and create smart trading plans. That’s how you can really take advantage of hot sectors and trading opportunities.

You’ve gotta think about what makes stocks move, how they move, and what you can learn from these movements for future trades.

I’m watching marijuana stocks because they’re volatile. Many are former runners, and they can move on news and hype.

Any new development could be a potential catalyst for a spike.

But before you get too excited thinking you’ll find the Tesla of marijuana stocks … Do yourself a favor and go back and study history.

I’ve seen this kind of crazy action before … In 2018, marijuana stocks went nuts on news that Canada legalized recreational use of weed on a federal level. What happened almost immediately after legalization day came and went? All the weed stocks crashed.

Some even tanked to new all-time lows.

So learn to trade these stocks. Don’t invest in them long term. Be prepared to strike when a stock fits your pattern and strategy. Always stick to your trading plan and rules and NEVER believe the hype.

Here’s my list of marijuana stocks to watch in May 2021…

Top 10 Marijuana Stocks to Watch in May 2021

Remember, this is a watchlist. There’s no guarantee any of these stocks will fit your trading pattern or style. And if you blindly buy them hoping for the best, you’re on your own. That’s not what this watchlist is for…

If that’s your plan, I suggest you save your money and paper trade until you figure out a strategy that works for you.

Use my stock picks to understand the thought process behind how I build a watchlist so you can work to build your own. Some of these stocks are higher priced. You don’t have to trade them. Learn the top lessons here then make your own watchlist.

Here’s my list of marijuana stocks to watch in May 2021…

Marijuana Stocks to Watch #1: 22nd Century Group, Inc. (NYSE: XXII)

XXII is a tobacco, marijuana, and hemp research company. On April 26 it announced “it has fulfilled an order for 3.6 million of its variable nicotine content research cigarettes.

“These research cigarettes are destined for use in important independent, scientific studies funded largely by the U.S. Food and Drug Administration (FDA), and other federal government health agencies.”

Read the full press release here.

Recently, the FDA proposed a ban on menthol cigarettes and said it’s also considering capping nicotine content. A press release on April 30 reported that the company applauds the FDA’s decision.

As of this writing, the stock’s trading sideways. I’ll watch the stock to react to the recent news. Company officers are also hosting a live webcast on May 6 to discuss its 2021 first-quarter results.

Marijuana Stocks to Watch #2: Green Thumb Industries Inc. (OTCQX: GTBIF)

GTBIF hasn’t had any recent news since April 15. That’s when it announced the launch of its cannabis-infused beverages.

The stock recently broke out of a channel to the upside. I’ll watch for it to continue up trending. Ideally, it will have a catalyst and high volume to retest its all-time highs around $39.

Marijuana Stocks to Watch #3: Zynerba Pharmaceuticals, Inc. (NASDAQ: ZYNE)

ZYNE develops cannabinoid therapies for rare disorders. Management participated in the Society of Biological Psychiatry 2021 Virtual Meeting on April 29–May 1.

The stock is trying to break out above the $4.60s. I’ll watch for a catalyst and volume to push the stock to the upside. It’s a former multi-day runner so it has the potential for a big move.

Marijuana Stocks to Watch #4: American Cannabis Company, Inc. (OTCQB: AMMJ)

AMMJ doesn’t have any recent news. But it’s bouncing off its lows of around 17 cents.

Like the other stocks, I’ll watch for a catalyst to propel it higher. Ideally, we see it break above its resistance around 27 cents.

Marijuana Stocks to Watch #5: Cannabics Pharmaceuticals Inc. (OTCQB: CNBX)

On April 26, CNBX announced it launched a new research program to develop a treatment for melanoma.

Read the full press release here.

It’s a former multi-day runner. I’ll watch for it to break out of its downtrend. Ideally, it breaks out over the 22 cent area and starts uptrending.

Marijuana Stocks to Watch #6: Canopy Growth Corporation (NASDAQ: CGC)

On April 8, CGC announced that it entered into an agreement to acquire The Supreme Cannabis Company, Inc. (OTCQX: SPRWF).

“Following completion of the acquisition, Canopy will possess a strengthened brand portfolio including one of Canada’s leading premium brands, 7ACRES. Brand growth is anticipated with distribution supported by Canopy’s robust sales and distribution network as well as superior consumer insights and R&D capabilities.”

Read the full press release here.

On April 28, a Bank of America analyst reinstated coverage of the company with a price target of $45. The stock had a small move on the news. But it likely needs a bigger catalyst to move higher.

Marijuana Stocks to Watch #7: MedMen Enterprises Inc. (OTCQX: MMNFF)

On April 26, MMNFF announced it was canceling almost 100 million in Class B subordinate voting shares after the company posted two consecutive quarters of positive retail cash flow.

Chairman and CEO Tom Lynch said, “This is the first time in MedMen’s history that it has had two consecutive quarters of positive retail cash flow. Our future has never been brighter as we continue to execute our turnaround plan and continue to grow our business.”

Read the full press release here.

The stock had a green day following the news but has been trading sideways since. I’ll watch for it for a breakout over 38 cents.

Marijuana Stocks to Watch #8: HEXO Corp. (NYSE: HEXO)

HEXO is a Canadian marijuana company. On April 28 it announced that one of its cultivation campuses received the “leading certification standard for medical cannabis cultivation.”

Company CEO and co-founder Sebastien St-Louis said, “As we continue to go after additional market share in Canada, and to penetrate new markets around the world, this certification demonstrates that we continue to offer high-quality output our current and future CPG partners can count on.”

Read the full press release here.

The stock had a big green day following the news. I’ll watch for it to break out over $7.

Marijuana Stocks to Watch #9: Tilray, Inc. (NASDAQ: TLRY)

On April 27 TLRY announced that the company was included on the list of TIME’s 100 Most Influential Companies.

The next day a Bank of America analyst reinstated coverage on the company with a price target of $23.

The company’s also estimated to report earnings on or around May 10. I’ll watch for a reaction to the earnings.

Plus, there’s the upcoming merger with Aphria Inc. (NASDAQ: APHA) that could be a catalyst as it gets closer to completion in the second quarter. APHA shareholders approved the merger on April 14. TLRY shareholders approved it on April 30.

The new mega-company will trade under the TLRY ticker.

Marijuana Stocks to Watch #10: General Cannabis Corp (OTCQB: CANN)

CANN is another marijuana company with acquisition news. On April 21 it announced it will acquire Trees, a company with marijuana dispensaries in two states. As part of the acquisition, General Cannabis Corp. will change its name to Trees.

I’ll watch for the stock to break out over $1. But like the other marijuana stocks, it likely needs a catalyst and high volume for a big move.

See the Stocks I’m Watching

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Also, check out these blog posts:

  • Top Penny Stocks List Weekly Update
  • Top Biotech Penny Stocks to Watch

Conclusion: Should You Trade Marijuana Stocks?

When it comes to trading penny stocks, volatility can be your friend. Marijuana stocks have plenty of volatility and hype right now, so they’re creating a ton of opportunities.

But that doesn’t mean you should trade just any stock in the sector. You’ve got to be diligent about your research and studying. Only choose the setups and patterns that work for you.

If you want to make the most of weed stock opportunities, you’ve got to invest in your education account first.

I share my 20+ years of experience trading penny stocks with new traders in my Trading Challenge. I want anyone who’s dedicated to take advantage of what I’ve learned — both good and bad.

penny stock checklist

If you’re accepted (you have to apply and I only accept dedicated traders), you’ll get access to tons of video lessons, live trading, and Q&A webinars. Plus, you can get trading commentary from me and the top traders and moderators in my Challenge chat room.

I purposefully trade with a small account so I can be on the same level as new traders. I also show every single trade publicly so I can use every trade as a lesson.

But don’t apply if you’re looking to get rich quick. That’s not what I teach. Trading isn’t easy. You have to study, work hard, and put in the time and dedication.

Ready to get started? Apply today.

What do you think about these marijuana stocks to watch? Are any of these tickers on your watchlist? Let me know in the comments, I love to hear from you!

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