4 Cannabis Stocks You Should Be Watching
The cannabis industry reaches far and wide, with many different types of companies based around the globe. These companies can be either directly involved in the sale of medical and recreational cannabis, or the distribution, development, and research of it.
Although recreational cannabis is still far away for many states and countries, there are still plenty of cannabis companies to invest in. From advanced biotech businesses to simple cannabis packaging startups, there are a plethora of companies getting involved in the green rush.
If you’re looking to diversify and expand your portfolio, cannabis-related stocks are something you should consider. We’ve put in the work, and scoured the internet for some of the more promising cannabis stocks worth looking into. We are no stock market experts, but read on to see some of our favorite picks!
#1 Canopy Growth Corp.
“[Canopy Growth Corp] controls a large chunk of the Canadian recreational cannabis market, currently valued at a staggering $7.7 billion.”
Based out of Canada, this company was one of the first cannabis producers to be licensed and federally regulated on the New York Stock Exchange (NYSE). They’re also a serious heavyweight, being the world’s largest legal cannabis company.
After its inception, Constellation Brands invested and took control of nearly a 40% stake of the company. This collaboration is significant because Constellation Brands is an American beer, wine, and spirits producer (Corona, Modelo, Svedka, etc.) with vast reach across global markets.
It looks like the alcohol industry is attempting to get in on the green rush by investing in a significant portion of a legal cannabis company. It seems to be paying off as well since Canopy Growth Corp. (CGC) controls a large chunk of the Canadian recreational cannabis market, currently valued at a staggering $7.7 billion.
For a time, the company was struggling with earning profits after trying to expand its share of the market. However, the recent quarter was profitable, and it seems that the company is on the verge of a serious turnaround. Right now might be a great time to look into this company, despite its previous hiccups.
#2 Amyris Inc.
Amyris Inc. is a U.S. based company involved in the research and development of chemicals for use in cosmetics, fragrances, and pharmaceuticals. The company is worth about $485 million, so it’s clearly no startup.
What separates Amyris from the rest is their use of state-of-the-art biotechnology techniques to produce chemical compounds. Combining machine learning with biology, they can create sustainable ingredients at an industrial scale.
Amyris has now applied this technology to produce high-quality CBD without the need for growing and harvesting any cannabis plants. The company claims that through this method, their CBD is manufactured without intensive agriculture, which results in a clean and pure product.
At the moment, Amyris will be shipping their biotech derived CBD to a company called LAVVAN. LAVVAN is a beauty and personal care company, so the CBD will likely be used in a wide variety of cosmetic products.
We highly recommend taking a hard look at this stock because they’re one of the best value stocks you can find right now. First off, they have one of the best price-to-sales ratios, which indicates that the company is producing steady revenue. It also has good momentum compared to other cannabis stocks, since it has declined very little in the last year.
#3 Tilray Inc.
Tilray is a pharmaceutical and cannabis company based in Canada but has many operations located worldwide. This titan of a company has a total market cap of approximately $1.3 billion.
They made history when they became the first cannabis company to launch on an American stock exchange. Since then, they have been steadily producing premium cannabis products for both Canada and the USA.
Not only do they sell legal cannabis in North America, but they also have a wide range of cannabis-based medications that they ship worldwide. Tilray doesn’t have to rely on the domestic market as they have a firm base to stand upon across the globe, which is good for stability.
Right now, we recommend watching Tilray Inc. because they are one of the fastest-growing cannabis stocks. Year after year, they have been steadily increasing in market share, and the recent quarter of 408% revenue growth shows that they’re not slowing down.
#4 GW Pharmaceuticals PLC
GW Pharmaceuticals PLC is a British company that primarily develops pharmaceuticals. In the late 1990s, they were allowed by the British government to conduct scientific research on the medicinal use of cannabis plants.
Over time, they developed and released the pharmaceutical Epidiolex. This drug is the first cannabis-related medicine that gained approval in markets around the world. In fact, it is still the only cannabis-derived medications approved and recommended by the US Food and Drug Administration (FDA).
They also have another cannabis-related pharmaceutical called Sativex, which will help treat multiple sclerosis and neuropathic pain. This new drug has a fast track from the FDA and will be another of the few drugs that have specific FDA approval.
The company possibly having two FDA approved cannabis-like drugs will make them a force to be reckoned with long into the future. Already, GW Pharmaceuticals PLC is showing an astounding 2,550% revenue growth.
On top of that, the company’s stock has a lot of momentum, and it doesn’t seem to be slowing down anytime soon. Watching this company is a no-brainer, and when they get another FDA approval, their stocks might skyrocket.
Sky High Stocks
We expect to see these companies and others grow even more, not only due to their respective initiatives but also due to the changing landscape of the cannabis industry. As the world begins to embrace recreational and medicinal cannabis, these companies will find a broader market, increasing the value of their stocks.
The green rush is far from over, and these stocks represent some of the potential that the cannabis industry holds. Investing in the stock market comes with uncertainty, and cannabis stocks are no different. In the last few months alone, we have seen many cannabis stocks plummet. This market is high risk, but the potential reward for early investors could be well worth the chance. Use these four stocks as a starting point when diving into the world of cannabis stocks.