Great Marijuana Stocks to Invest in Now
By Tamila McDonald, July 31st, 2018
Marijuana stocks
As more states embrace recreational and medicinal marijuana, the once taboo industry is taking the investing world by storm. One estimate suggests the US marijuana industry could reach a value of $25 billion by 2020. With this significant growth potential, marijuana stocks may be of interest to investors.
The legal cannabis sector is already worth $6.7 billion in the US alone. It’s worth another $8 billion in Canada.
However, not every marijuana stock is performing as well as others. If you’re considering taking the leap and investing in marijuana stocks, here are a few worth exploring now.
MariMed (OTC: MRMD)
When it comes to professional management companies serving the cannabis industry, MariMed is a leader. Additionally, the company markets a variety of cannabis products. Their offerings include Nature’s Heritage, Kalm Con, and Betty’s Eddies.
Over the course of 2018, MariMed’s stock soared by over 240 percent. This was largely based on their Q1 earnings report. Revenue hit the $2 million mark, an 81 percent increase year-over-year.
As additional medical marijuana markets open, including in Maryland and Massachusetts, MaeriMed may see significant growth. In Q1, they began operating in Maryland They also have a facility in Massachusetts under construction.
iAnthus Capital Holdings (OTC: ITHUF)
iAnthus Capital Holdings currently operates in four states: Florida, Massachusetts, New York, and Vermont. They have 46 dispensaries and eight cultivate facilities. They are also forming strategic partnerships with businesses in Colorado and New Mexico.
This year, iAnthus shares rose by 150 percent. After acquiring GrowHealthy Holdings in January, their stock prices surged. The primarily surged because they expanded their operations into Florida. In early April, they acquired Pilgrim Rock, which was based in Massachusetts.
The growing Massachusetts market will help iAnthus, but their locations in Florida and New York also leave them well-positioned since the states have only a limited number of licenses.
Canopy Growth Corporation (NYSE: CGC)
A Canadian marijuana stock, Canopy Growth is the largest grower in Canada and, in regards to market cap, the biggest marijuana stock in the world. Year-to-date, Canopy is up 24 percent, even though the price fluctuated until the end of April.
In May, the company became the first marijuana stock on the New York Stock Exchange (NYSE). Now that recreational marijuana has been legalized in Canada, only the second nation to do so, Canopy is likely to see a surge in their stock prices. Recreational sales could begin as early as September, making now a great time to consider investing in the company.
They are also a big player in the global medicinal marijuana market, which could help them achieve additional gains. Further, a deal with Constellation Brands, an alcoholic beverage maker, that could lead to cannabis-infused drinks helps differentiate the company from the pack.
Aphria (OTC: APHQF)
Unlike the other marijuana stocks on the list, Aphria has struggled a bit this year. However, this Canadian company could benefit from the legalization of recreational marijuana in Canada, giving it a chance to experience significant growth.
Additionally, the company has a robust retail distribution network thanks to a deal with Southern Glazer’s. Aphria also targets the global medical marijuana market, which expands the companies reach and objectives, and has a relationship with Liberty Health Sciences, something that could help them penetrate the US market.
Cronos Group Inc. (NASDAQ: CRON)
A medicinal marijuana cultivator based in Toronto, Cronos Group became the first marijuana stock on the NASDAQ. The company serves an international market, including Canada and Germany. They also have a facility under construction in Israel and have a license in Australia through a joint venture.
Though Cronos Group doesn’t have a US presence yet, their revenue is respectable. Additionally, if the American market settles over time, they may venture into the country.
GW Pharmaceuticals (NASDAQ: GWPH)
If you are interested in marijuana stocks but hesitant to pick a company that is based mainly on the plants, GW Pharmaceuticals may be a happy medium. The company has an FDA-approved drug. The drug uses an active ingredient from cannabis, which is the first of its kind.
The medication, Epidiolex, is a treatment for seizures for two forms of epilepsy, Dravet syndrome and Lennox-Gastaut Syndrome.
In the end, it provides an alternative approach for those who may want to invest in a marijuana-style product without the same risks that come with changing regulations.
Scotts Miracle-Gro (NYSE: SMG)
If the idea of directly being involved in cannabis makes you nervous, then investing in Scotts Miracle-Gro might be a better option. It’s considered ancillary to marijuana stocks. The company has made a substantial connection through its hydroponics products. They even went as far as to acquire Sunlight Supply Inc. This purchase gave them a significant foothold in the hydroponics world.
Effectively, investing in Scotts Miracle-Gro gives you the ability to indirectly invest in the cannabis industry. Buy this stock without actually investing in marijuana.
