The legalization of weed in Canada has paved the way for billions of dollars in legal yearly sales and has brought the cannabis market out of its shadows into a trustworthy business model.
About two-thirds of US states have adopted measures to legalize medical marijuana. In November 2018, President Trump signed the Farm bill into law which legalizes hemp and cannabis-based products throughout the country. Additionally, the U.S. Food and Drug Administration approved the first cannabis-infused drug.
Businesses in the growing cannabis industry are putting all efforts to raise money and list their shares on the U.S. exchanges to access capital. Therefore, investing in cannabis stocks doesn’t seem like a bad proposition.
ArcView Market Research and BDS Analytics, states that worldwide consumer cannabis outlays are projected to rise 38% to $16.9 billion this year, increasing from an estimated $12.2 billion in 2018, $9.5 billion in 2017, and $6.9 billion in 2016. Furthermore, total global yearly sales growth of marijuana from 2017 to 2022 is forecasted at $31.3 billion.
According to Investment bank Cowen & Co, the legal cannabis market will be valued at $75 billion by 2030. This means that investors have a lot of opportunities to make money from the growing industry. Here are some top cannabis stocks to look out for.
Tilray (TLRY)
After Tilray’s initial public offering, its stock pulled a ten-bagger. However, this wasn’t permanent as the stock fell drastically. The company was turned down by several analysts and commentators calling it an unsustainable bubble. However, since its IPO, TLRY stock rose to over 470% which shouldn’t be called a failure. Furthermore, as time passed on, the shares maintain a stable rate of nearing the $100 level. If you had second thoughts TLRY then think again.
Canopy Growth (CGC)
The last couple of months have not been easy for Canopy Growth (NYSE: CGC). The company has followed the same pattern as most other marijuana stocks. In October, CGC dropped 26%, while November seemed promising as they started gaining momentum. Sadly, the rally lost momentum, and the company ended up losing double-digits for the month.
However, the good thing about Canopy Growth is its ability to maintain steady growth. Although the company has witnessed recent sharp losses, its long-term high trend channel is always stable.
A financial institution backs Tilray. On the other hand, Canopy Growth has an alcoholic-beverages producer named Constellation Brands (NYSE: STZ). Significant investment has gradually taken over the cannabis sector, and this has made CGC one of the best stocks to buy, paying little attention to its well-publicized shortcomings.
Cronos Group (CRON)
Although most cannabis stocks find it difficult to remains stable, Cronos Group (NASDAQ: CRON) has defied all odds and stays above the competition. Currently, CRON stock has 39% lead. Indeed, most of that positivity is due to Altria Group (NYSE: MO).
The famous tobacco company drew attention when it declared its partnership with Cronos. The $1.8 billion partnership, offers a lot of financial backup for CRON to further develop its cannabinoid (CBD) products. On the other hand, Altria is seeking for something new to rekindle its traditional tobacco business. Altria’s teaming up with Cronos adds another angle in this sector to work.
Aurora Cannabis (ACB)
Aurora Cannabis (NYSE: ACB) has witnessed an unstable long-term performance in the markets when compared to its competitors in marijuana stock. In 2017, ACB stock drastically fell in Wall Street. This year, ACB is showing signs of positivity, but the company needs to put more efforts.
ACB can potentially become one of the best stocks to buy for 2019 if it wakes up from its slumber. The market is yet to favor Aurora’s buyout of Farmacias Magistrales. Farmacias grew into popularity when it became the first and only Mexican company importing raw materials containing the psychoactive component THC.
The buyout allows Aurora to channel through Latin America’s medical-marijuana market. Apart from Farmacias, ACB has other operations in Colombia and Uruguay.
WeedMD Inc.
WeedMD is a licensed producer of medical marijuana based in Canada. The company has a 26,000 square foot production facility in Aylmer, Ontario where it carries out its operation. Recently, WeedMD leased a 395,000 square foot greenhouse in Strathroy, Ontario. The Company’s goal is to increase its production capacity to over 33,000 kg/year (1,500 kg/year currently). WeedMD offers products including dried Cannabis, cannabis extracts and cannabis vaporizes. Last year, Health Canada licensed the company to sell cannabis cultivated at its greenhouse facility in Strathroy. The license allows WeedMD to move marijuana from its Strathroy greenhouse to its Aylmer, Ontario facility where they will be packaged and distributed.
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