Best Marijuana Stocks – Marijuana, a product that comes from the Cannabis plant is an effective and highly promising medicinal substance. Many areas have started or have pushed for the legalization of its use, as its possibilities for growth in terms of significance to research and recreation are virtually endless. Nowadays, Cannabis is being legally cultivated in most of the countries in the western areas, and research about its potential benefits is increasing. We are here to help you harness your interest in this increasingly popular investment by giving you the best marijuana stocks you can consider placing your bets in.
Rise Of Cannabis Stocks
On the 17th of October of the year 2018, the country of Canada pushed for the legalization of the use of cannabis for adult use. With this decision, the stocks of the said crop rose as popular rages wherein investors clamored to be involved in the market early. This unprecedented interest created a bubble that eventually led to the fall of stock prices when the hype vanished. However, cannabis stocks are looking promising once again as prices have regulated, and plenty of investors are considering ventures in this industry. If one is to look past the market’s controversial history and focus on its promising benefits instead, there is a big room for growth in this venture.
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The five companies that are listed here are market drivers that you should consider first when considering placing capital on marijuana markets. Each company has its unique characteristics, and they each have a strategy that could boost their stocks at any moment. Potential investors like you must know the strengths and weaknesses of these companies for your decision of where to place your capital in. You should now scrutinize which venture you are most convinced by, and who knows, you might make a big fortune by joining this promising market.
Top Marijuana Stocks to Buy
One of the leading Cannabis companies is the Cronos Group, whose claim to fame in the sector is their focus on the recreational side of marijuana use. It is considered to be a speculative play because the company relies heavily on the legalization of marijuana use at the federal level. Should this happen in the future, Cronos Group earns its right as one of the best marijuana stock in the market.
- American tobacco company Altria has partnered with Cronos Group in 2018, investing about $1.8 billion in their ventures. The Marlboro, Parliament, and Virginia Slims maker has seen Cronos Group as the most promising company for getting involved in the sector.
- The huge investment made for Cronos Group is recorded as one of the most impressive balance sheets in the whole marijuana market sector.
- The small number of remaining states that have not yet decriminalized the use of cannabis is considered to be the tipping point for Altria’s investment.
- Cronos Group is in the position of capitalizing the market for recreational marijuana use, as evidenced by its success in the Canadian market.
- The partnership between the two big companies is highly strategic as Cronos needed a strong partner for managing the regulatory environment of the region whereas Altria saw the potential success of this venture.
This best marijuana stock company offers a unique opportunity for potential investors for their getting involved in this business sector. GW Pharmaceuticals or GWPH manages to be disengaged in the debate for marijuana legalization by investing in derived products from the plant.
- GWPH does not get involved in growing the plant, nor its use as an adult recreation substance.
- Instead, it focuses on developing cannabinoids as key ingredients for a variety of therapeutic products.
- Cannabinoids are substances that can be extracted from the cannabis plants, therefore freeing the company from debates on their legal cultivation. They receive their raw material as an entirely new, and less controversial product and processes that instead.
- Epidiolex, which is cannabidiol that has been refined heavily, is their claim to fame. The drug is used to treat seizures in young patients caused by Lennox-Gastaut and Dravet syndromes. Valproic acid which used to be the standard treatment, alongside clobazam, for the said diseases was overshadowed by the wonder drug.
- The United States Farm Bill has secured cost reduction and an increase in accessibility for GWPH.
- Currently, the company is developing Sativex, a new treatment for multiple sclerosis patients.
- They are also developing two cannabis-based treatments aside from the above options which are now clinical candidates, securing their place as the best marijuana stock company with their promising products.
GrowGeneration is a company that is directly involved in the planting and growing of the cannabis plant as they are an American farm supply company. They cater to a unique part of the market, however, as they can shield themselves from regulatory risks.
- Retail hydroponic and organic gardening stores are what GrowthGeneration is involved in the United States. Both ventures are not illegal, the reason why GrowthGeneration can work their way through the regulatory risks of the sector.
- Their investors can find themselves benefitting from the growing trend of marijuana growing as the company sells equipment to the farmers.
- Unlike other companies also involved in the sector, GrowthGeneration is seeing strong growth in terms of their revenue and profits. They are expected to give $0.31 profit per share as profits are expected to reach $5.5 to $7.5 million this year.
Abbreviated as ACB, Aurora Cannabis is a company based in Canada that is currently on the rocks. Investors have been skeptical of the company’s recent cash-burning ventures, but there is still reason for considering buying their stocks. After all, its recent activities and revenues are providing a certain promise that the company will be able to rise back to the top of the industry.
- A significant number of investors is expecting the company to decline, but stock market experts see this as an opportunity to buy the company’s stocks to secure profits when it finally recovers.
- Aurora Cannabis has drastically reduced its cash burn by laying off its workforce and slashing huge amounts from their capital expenditures.
- Their third-quarter earnings have proven to be promising, with an increase of about 18% on a quarter to quarter basis.
- The company is expected to turn a profit in the first fiscal quarter of 2021, potentially giving risk taker investors dramatic gains.
Canopy Growth Corporation
Another company that is kind of hitting the rocks is Canopy Growth Corporation. They recently missed revenue expectations, and stock prices have declined as a result. Similar to the situation of ACB, the time for investors to place their capital on this company is now to gain larger profit margins when the company recovers.
- Canopy Growth Corporation or CWG is named as a top three company in the sector worldwide in terms of market capitalization. In Canada alone, it holds the title of being the largest producer of cannabis in the region.
- Being a top market player in the industry, the company was able to attract the investment of Constellation Brands. The collaboration is parallel to that of Cronos Group and Altria’s partnership, giving CWG the chance to operate properly despite heavy market regulations. Constellation Brands is known for Modelo, Corona, and Casa Noble, all of which are alcoholic beverage brands. They placed $4 billion on investment to the CWG in 2018.
- It incurred a drastic decrease in revenue growth in recent reports but remains to be one of the best in the space.
- Its recent failures provide an opportunity for investors to seriously consider buying their stocks now for maximum profits when the company can recover later on.
- There is a sense of security for these potential investors as CGC is capable of waiting for the right time to overturn its bad business deals as they have cash amounting to billions on hand. CGC is observed to be focussing on acquiring assets, a move to control the space in its infant stage. When the market has gotten big enough, CGC is expected to have also grown big enough that no company will be able to compete with it as it has taken control of the industry with its vast assets. This strategy has been proven effective in plenty of other industries wherein those that focussed their efforts in controlling rather than reaping early benefits became its long-term leaders.
Summary – Best Marijuana Stocks
Before jumping into sorting out the given top companies that are ruling the cannabis market to see which one you should invest in, it might help you get engaged in the product more if you know some of its backgrounds. Cannabis is a plant that used to be indigenous to eastern Asia but has since been cultivated worldwide due to its health and recreational benefits. The species of Cannabis sativa in particular gives the patient a serotonin boost when consumed (most popularly done through smoking). The species has a variety of strains that can be grown, with each strain having their unique strengths and characteristics. If it is to your interest to know more, check out more information from this source.