All rights reserved. A number of factors suggest that marijuana stocks may continue to rise. First, none of the big waves currently spooking benchmark indices affect the legal cannabis industry. Second, medical cannabis, on the one hand, potentially offers significant social utility.
The perception exists that big pharma companies should focus primarily focus on revenue generation rather than medical breakthroughs. On the other hand, medical marijuana companies have no such quandaries. If anything, an organization that produces a proven, effective cannabis strain would represent a buyout target.
This asymmetry challenges Big Pharma, but makes marijuana-based pharmaceuticals among the best stocks to buy. While the sector remains risky, the deflated market environment offers attractive deals on these 10 marijuana stocks. Within a few months after its initial public offering, TLRY stock pulled a ten-bagger. But as you know, the victory was short-lived, and Tilray came crashing down to earth. Naturally, several analysts and commentators blasted the company as an unsustainable bubble.
The following November appeared promising, building off a sharp burst of momentum. Unfortunately, the rally lost traction and CGC ended up losing double-digits for the month.
Its longer-term bullish trend channel remains intact. That said, I think the broader fundamentals favor CGC stock. Big money is increasingly stepping into the cannabis sector, making CGC one of the best stocks to buy despite its well-publicized setbacks. The iconic tobacco company made headlines when it announced a partnership with Cronos. On the other side of the fence, Altria needs something fresh to reinvigorate its traditional tobacco business.
A key long-term synergy could be the vaporizer market.Canadian companies dominate the global cannabis market, but US cannabis stocks show much potential for savvy investors.
Investors in the marijuana market have gained an abundance of cannabis listings to invest in. While Canada remains the hotbed of the cannabis investing world, the American market is seeing a rush for US cannabis stocks.HOW TO GET RICH FROM CANNABIS - POT STOCKS, HEMP FARMING & CBD
The market offers a variety of US cannabis stocks operating either directly in a legal market or seeing by gaining benefit from an investment or partnership. Despite its nebulous status at the federal level, cannabis has flourished in the US as investors have gained entry into the country. Companies largely act as multi-state operators MSOsowning assets in states where the drug is legal.
For those interested in cannabis investmentthe Investing News Network offers a look at a variety of publicly traded US cannabis stocks on American exchanges. The list includes US cannabis stocks operating in the industry or involved through an investment divided by the respective exchange.
This list includes stocks currently actively trading and involved in the marijuana industry available on US exchanges. One of the premier listings in the public markets, the companies in this list represent a mix of pure cannabis plays that have reached a high enough level to be listed and established companies that gained exposure to the marijuana market one way or another.
As one of the largest tobacco companies, Altria Group manages a portfolio of assets across the globe. Aphria was one of the first companies to reach the TSX and help solidify the growth of the marijuana industry. After undergoing a management change, the firm has maintained its attention to its scale growing operations and its international ventures. Aurora Cannabis has secured a spot amid the leading producers of marijuana in Canada and has operations across the globe. CannTrust is a Canadian producer with a deep network of patient users that is actively developing its recreational offerings in the Canadian market.
The company plans to develop hemp operations in the US market. Canopy Growth is one of the largest leading Canadian cannabis producers, with investments across the entire sector. The beverage maker behind Corona beer has a play in the cannabis market thanks to its investment and ownership stake in Canopy Growth.
IIP is a real estate investment trust REIT signing lease deals for the use of facilities in the medical cannabis space. As a REIT, the company operates in the cannabis space but does not touch the cannabis plant in any way. Molson Coors Brewing Company is another beverage maker that gained an entry to the cannabis market through a partnership. The firm will aid in the development of cannabis-infused drinks for the legal Canadian market as part of its joint venture with HEXO. The mix of companies here also includes a few Canadian cannabis firms.
The firm, like many other producers, has expressed interest in entering the US cannabis market at an appropriate time.
Organigram is an indoor grower of cannabis and supplier of the medical and recreational markets in Canada.Most investors in marijuana stocks will probably say "good riddance" to Multiple issues plagued the Canadian cannabis industry, in particular, causing many pot stocks to sink this year. But a new year is only days away, with new opportunities on the horizon. My view is that will be a much better year overall for marijuana stocks than was.
And, as was the case last year, some stocks will rise above the rest of the pack. Here are my picks for the three best marijuana stocks to buy in in alphabetical order. I think that the new year should be a happy one for Constellation shareholders. The company's premium beers are likely to continue dominating the market. My take is that Constellation's anticipated launch in spring of a Corona-branded hard seltzer should add nicely to sales.
I also expect the company's focus on premiumization and brand building with its wine and spirits products should pay off. The lack of retail stores in Canada has been a huge problem for Canopy, but the situation will improve considerably in as Ontario issues licenses for new stores. Canopy Growth is poised for success in Canada's nascent cannabis derivatives market in as well. Klein is the ideal person to bring much-needed fiscal discipline to the cannabis producer and align Canopy with Constellation's interests.
My view is that IIP should be able to repeat its formula for success in quite easily.
Farm Bill Passes, and These Hemp Companies Will Be Big Winners
The company currently owns 46 properties in 14 states that it leases to customers. It has plenty of financial flexibility to add more cannabis properties in the new year that will drive even further growth. Cannabis markets are still in their infancy in several of the states where IIP operates. And with 33 states with legal medical cannabis markets and several likely to vote on legalization inthe company has lots of growth opportunities.
While IIP is poised to deliver strong revenue and earnings growth next year, there's also another reason to like this stock: Its dividend. IIP's dividend yield now stands at a mouth-watering 5. And Valens appears to be poised for an even bigger year in I think that Valens just might be the biggest winner of all in Canada's Cannabis 2. If these companies' cannabis derivatives products sell well and I suspect they willValens will succeed, too. Valens should also generate strong growth from its white-labeling deals.
Under these contracts, Valens buys cannabis, extracts derivatives such as CBD and THC, packages the final products edibles, vapes, etc.
The company says that it's in negotiations related to over 50 other opportunities. The Canadian market should be enough on its own to fuel Valens' growth. However, the company could also benefit from international growth. Valens is focusing especially the European, Latin American, and Australian medical cannabis markets.
It's also eyeing the U. Dec 29, at AM. Author Bio Keith began writing for the Fool in and focuses primarily on healthcare investing topics. His background includes serving in management and consulting for the healthcare technology, health insurance, medical device, and pharmacy benefits management industries.
Follow keithspeights. Image source: Getty Images. Stock Advisor launched in February of Join Stock Advisor. Related Articles.Who knew that legalizing hemp production would be the one issue that both Democrats and Republicans would agree on? A provision in the Farm Bill approved by Congress legalized hemp production. This will be a boon not just for hemp-manufacturing companies and hemp-processing companies, but for hemp-derived cannabidiol CBD companies.
The U. And there are many well-established companies set to take advantage of this lucrative market. Still, it will have huge implications for Wall Street. Why would a conservative like McConnell, who has long rallied against legalizing marijuana, want to legalize hemp?
Jobs, jobs, jobs. Schedule I drugs are those that have, according to the DEA, no currently accepted medical use and have a high potential for abuse. How one could abuse hemp has always been a head-scratcher. The seeds and flowers can be used in health foods, body care products, and nutraceuticals.
CBD is known to reduce stress and anxiety and make people feel more alert and focused. Studies have also shown that CBD reduces the symptoms associated with schizophrenia. Hemp and CBD products can be turned into medicines, oils, extracts, drinks, etc. On December 11, he tweeted the following:. My provision in the Farm Bill will not only legalize domestic hemp, but it will also allow state departments of agriculture to be responsible for its oversight.
The demand for tobacco may be waning, but the demand for marijuana, hemp, and CBD has been soaring. Industry analysts estimate that the U. And now that hemp is legal, farmers can buy crop insurance, apply for loans, grants, and write off business expenses just like for any other crop. Whereas investing in a marijuana pure-play company would be off the table for some, investing in hemp-manufacturing companies, hemp-processing companies, or businesses that manufacture CBD products opens the door of opportunity.
Instead of delving into larger marijuana stocks that everybody is more than well aware of, it might be more advantageous to look at some of the lesser-known American hemp stocks—companies that should perform very well now that hemp is legal in the U.
In fact, the company only began trading on December 3. The Chicago-based company is one of the largest integrated multi-state cannabis operators in the U. The new assets will allow Cresco to cultivate, manufacture, process, and operate a medical marijuana dispensary, with the opportunity to obtain up to three medical marijuana dispensary licenses and three adult-use dispensary licenses.
This does not include the full amount of proceeds from financing activities completed subsequent to the end of the quarter. The Tempe, Arizona-based cannabis company has one of the largest footprints in the country. Since beginning operations inHarvest Health has expanded its presence in the U. On December 19, Harvest Health added to its existing retail licenses in Pennsylvania by winning every medical marijuana dispensary license it applied for.
This means Harvest can now open more retail stores than any other company in the state of Pennsylvania. Harvest Health has six months to become operational before it begins dispensing medical cannabis. Harvest Health will be the biggest medical marijuana retailer in Pennsylvania, and it already has the largest footprint in Arizona, the third-largest medical marijuana market in the U.
Through the new joint venture, AWW will buy, develop, and finance new construction projects, engage in land purchases, capital improvements, and sale-leasebacks to Harvest Health and other businesses operating in the cannabis industry. But it should experience significant exposure now that hemp has been legalized. The Las Vegas-based company is a leader in the industrial hemp industry.
Hemp Inc offers products and services to the medical and recreational marijuana industries. On top of that, the company develops and operates web sites that provide news and entertainment related to the medical marijuana industry. The company is light on news and its current financial position will not set Wall Street on fire.
That said, the stock has been bullish since news of the Farm Bill became public. Hemp Inc is a very speculative play, but it has huge potential and is worth keeping an eye on in Medical marijuana is legal in 33 states and recreational marijuana is legal in 10 states and Washington, D.To read more about which hemp stocks to consider, you can find our latest top hemp stocks here. This is an extremely large piece of legislation that is only reviewed every 5 years sinceand outlines the regulations governing everything from food stamps to how land can be used for environmental purposes.
Industrial hemp has over 25, recorded uses. You read that right. As big as that is, the Hemp-derived CBD market is also a monster. CBD is the new buzzword in the wellness world.
Industrial hemp-CBD contains less than 0. However, the Farm Bill removes hemp from the Drug Schedule altogether. And herein lies a problem. This creates a grey area covering both legality and prescription. Does the farm bill completely override the DEA? Fast forward toand Charlotte's Web is now the undisputed market leader in the hemp-derived CBD market. The Colorado-based, vertically-integrated business, operates on over acres of irrigated farmland, with a 50, square foot in-house production and manufacturing facility.
They also have contract farming agreements for their hemp in Kentucky and Oregon. Charlotte's Web confirmed that its' retail presence has surpassed 6, doors as of May, while its' hemp acreage planting is planned to double this year. With the 1 CBD brand in the US, a very strong management team with deep experience and track record in cultivation, distribution, sales and finance, Charlotte's Web is in pole position to take advantage of the booming Hemp market in Founded inthis vertically-integrated business manufactures, sells and markets it's hemp-derived CBD brands across the US.
There are two distinct divisions to CV Sciences. They have a pharmaceutical division and a consumer-products division. The pharmaceutical division focuses on the research and development of new CBD based drugs.
Their consumer products division, however, is a whole other story.
Their PlusCBD brand is sold nationally through their network of retailers and has more than 50 products in the range. These cover verticals such as beauty care, nutraceutical and vape to name but a few. Given the range of products and their current reach, this is certainly no early-stage company. Extremely profitable and well-positioned to take advantage of the US Hemp market, the stock was one of the best performers ofand we see no reason why it couldn't be one of the best in They have a great balance sheet, solid management, and if they could look to uplist from the OTC to one of the bigger exchanges inthe stock could really perform well.
Elixin o l has been one of our favourite stocks from quite some time now. Elixinol Globalwhich operates in the industrial hemp, dietary supplements and emerging medicinal cannabis sector, comprises three separate companies. Elixinol US is the main business unit. The company manufactures and distributes hemp-based dietary and skincare products to the US market and exports to another 40 countries globally including the first-ever CBD-based product to Japan in mid According to sales figures, Pet Releaf accounted for roughly 65 percent of the pet market's CBD product sales in We've long enjoyed our relationship with Pet Releaf.
This deal strengthens our supply arrangements and mutual and synergistic distribution networks. It ensures Pet Releaf products, which so many dog and cat lovers rely on, will have scalability and ongoing quality of supply.
The other two companies both operate out of Australia. Hemp Foods Australia sells hemp foods and seeds via both a retail network and wholesale channels. And finally, there is Elixinol Australia, a late-stage medicinal marijuana applicant, that will be looking to produce premium medicinal marijuana for the emerging Australian medicinal market. The company is also expected to experience further revenue growth in Q2following the rollout of national distribution sales for the US.Last year was supposed to be when marijuana stocks proved their worth, transcending from speculative investments to worthwhile long-term holds.
However, this didn't even come close to happening. When the curtain closed, the vast majority of cannabis stocks ended the year lower by a double-digit percentage. In a year when a lot could have gone right, the reality is that very little did. Canada continues to struggle mightily with supply issues caused by an inadequate number of open marijuana dispensaries in Ontario. Additionally, regulatory agency Health Canada's inability to review and process licensing applications in a timely manner has led to significant delays in bringing product to market.
Meanwhile, select U. The collective end result being that black market marijuana thrived in North America, while most marijuana investments seemed to go up in smoke. While many of these issues won't be resolved overnight, the expectation is that a more cost-focused cannabis industry will take the necessary steps forward inleading to a much better year.
But there are a handful of marijuana stocks that I don't believe will simply tread water or be part of the status quo in Rather, I see the following companies as the best pot stocks investors can buy in They're far from being brand-name companies, but they have the differentiating factors needed to stand out in what should still be a high-growth industry over the long run.
Canadian growers were certainly given the opportunity to be industry leaders, but a combination of regulatory issues and overzealous spending has made that nothing more than a pipe dream OrganiGram is unique in a number of ways relative to its peers. For one, it's the only major grower i. Being based in New Brunswick, OrganiGram has the natural ability to gobble up market share in Canada's eastern provinces.
It's also worth mentioning that OrganiGram is one of five growers that have forged supply deals with every Canadian province, so it's certainly not stuck just servicing these less-populated markets. Another factor that really stands out with OrganiGram is the company's production efficiency.
According to its management team, it is capable ofkilos of peak yearly output, yet is working with less thansquare feet of cultivating space. The secret is that it uses a three-tiered growing system in its licensed rooms, thereby pushing its projected yield per square foot to around grams.
Comparatively, this yield is about double that of its peers, and it should mean substantially higher margins. But perhaps the most important thing to remember about OrganiGram is that it's the only Canadian grower to have produced a no-nonsense profit. In the fiscal third quarter, net sales of cannabis outpaced costs of goods and operating expenses by 1.
Sure, it wasn't a huge operating profit, but it's the first real operating profit we've seen in the industry, without the aid of fair-value adjustments or other one-time benefits.
This is a well-run company with the tools to outperform in as derivative sales pick up. That's a trend I'd expect to continue in The basis for IIP's business model is pretty simple.
The company acquires assets for growing and processing medical marijuana, then leases these properties out for an extended period of time often 10 to 20 yearsthereby reaping the rewards of rental income. Furthermore, it passes along annual rental increases to its tenants, allowing it to stay ahead of the inflationary curve, and charges a 1. In other words, although IIP primarily grows by making acquisitions the hallmark of most REITsit does have a modest organic growth factor built in.
InInnovative Industrial Properties wound up nearly quadrupling its portfolio from 11 assets owned to 42 properties in 13 states. More important, IIP provides updates to its metrics following every acquisition. As of now, the company's weighted-average remaining lease is Also, this is the only pure-play cannabis stock that pays investors a dividend -- and a fat one at that!
This fast-growing company is perfect for growth and income seekers alike. Ancillary companies will continue to play a key role in the long-term development of the pot industry, but many are contending with the same supply or tax issues hurting direct players.Comment on This Story Click here to cancel reply.
Or to contact Money Morning Customer Service, click here. Your email address will not be published. Sign me up for the Money Morning newsletter. Save my name, email, and website in this browser for the next time I comment. There's an entire legal cannabis wave sweeping the nation. Legalization across the United States is set to provide huge windfalls for pot stocks in the coming year. Canada has fully legalized marijuana.
Top Marijuana Stocks for April 2020
Eleven U. It's also a fair bet that the United States is heading toward full legalization. CBD products were made completely legal in the U. That allowed CBD products to explode on the market over the last few years. One of our top cannabis stocks to own in the coming months and years is Tilray Inc.
A Canadian researcher, cultivator, and producer of medical cannabis products, Tilray has grown into one of the world's largest legal marijuana companies. It's one of the best marijuana stocks for growth in this market. The Next American Aristocracy is expected to be fueled by today's cannabis boom. If you take advantage now, you could enjoy the kind of wealth "that lasts generations. BUD is the world's largest brewer to research non-alcoholic, cannabis-infused beverages in Canada.
While this partnership was meant for Canada, there's no reason it can't expand to other nations once it gets off the ground. Manitoba was the biggest hemp company in the world. That should help Tilray top the CBD market.
Tilray is certainly one cannabis stock that we recommend watching for But there are many others. Here's our full list of cannabis stocks to watch in Canada-based Cronos Group Inc. In addition to the company's size, Cronos continues to innovate.
This creates refined and highly pure CBD oil. Better yet, the company doesn't have to pay the overhead to cultivate massive quantities of plants. Altria Group Inc. In a market that continues to expand, these numbers will grow as well. Canopy Growth Corp.