For seasoned investors, marijuana stocks could be in focus right now. Understandably, this has and continues to be the case given President Joe Biden’s more progressive agenda on the calming substance. Evidently, five states have already legalized recreational marijuana over the past four months. This would translate to about 30% of the country allowing citizens of legal age to own and use cannabis.
Not to mention, overall legal marijuana sales hit a record of $17.5 billion in 2020, according to Forbes. This marks a sizable 46% year-over-year surge. Now, more people than ever are likely turning to marijuana amidst the pandemic. After all, studies do suggest that the substance helps alleviate symptoms of general anxiety and stress. With increasing market penetration and accelerated legislative support, could now be the time to look for the top marijuana stocks?
Well, conventional players in the industry such as the Hexo Corporation (NYSE: HEXO) are already growing at breakneck speeds. Over the past year, HEXO stock has more than tripled in value. Elsewhere, even literal pick-and-shovel cannabis play, GrowGeneration (NASDAQ: GRWG) has seen its shares skyrocket by over 1,300% in that time. All in all most would argue that the cannabis industry has long-term growth potential right now. Should this hold true, would you consider adding one of these top marijuana stocks to your portfolio?Top Marijuana Stocks To Know Now
- Canopy Growth Corporation (NASDAQ: CGC)
- Cresco Labs Inc. (OTCMKTS: CRLBF)
- Aphria Inc. (NASDAQ: APHA)
- Innovative Industrial Properties Inc. (NYSE: IIPR)
Canopy Growth is a multi-faceted cannabis company with a strong investment in brand, market, and product differentiation. The company has created a dominant, global business with the potential to generate significant and sustained returns on shareholder capital for the long term. By leveraging on consumer insights and innovation, it offers product varieties in high-quality dried flower, edibles, infused beverages, and oils. CGC stock currently trades at $29.11 as of 11:08 a.m. ET on Friday, and has been up by over 90% in the last year. Yesterday, the company announced a new acquisition that has caught investors’ attention.Source: TD Ameritrade TOS
In detail, Canopy Growth will acquire The Supreme Cannabis Company (OTCMKTS: SPRWF) in an all-stock transaction valued at approximately $435 million. The transaction will further boost Canopy’s prospects for the long run. Notably, the company will possess a strengthened brand portfolio that includes 7ACRES. 7ACRES is one of Canada’s leading premium brands for high-end cannabis flowers. Canopy can also expect brand growth with distribution supported by its robust sales and distribution network.
Impressively, acquiring Supreme will bring about a premium, low-cost, and scalable cultivation facility to Canopy’s production capabilities. Given this exciting piece of news, will you consider adding CGC stock to your portfolio?Cresco Labs Inc.
Cresco Labs is a vertically integrated cannabis and medical marijuana company based in Chicago. In brief, it is one of the fastest-growing cannabis companies in the world. The company’s operations include cultivation, manufacturing, extraction, and packaging of the calming substance. Its facilities are also powered by world-class agronomists, manufacturing experts, and state-of-the-art agricultural equipment. The company’s shares currently trade at $12.48 as of 11:12 a.m. ET.Source: TD Ameritrade TOS
Last month, the company reported record quarter and full-year financials. In it, the company posted full-year revenue of $476.3 million, up by 271% year-over-year. Its fourth-quarter revenue was at $162 million, a 292% increase year-over-year. The company also ended the year with $136.3 million in cash. It is safe to say that 2020 was a remarkable year for Cresco Labs. The company has dedicated its resources to the most strategic markets and it certainly paid off. It also executed high-efficiency retail and generated substantial operating leverage as it scaled.
Given how New York had just recently passed legislation to legalize adult-use cannabis in New York, the company could benefit from this as it expands its market into another state. New York being the fourth most populous state in the U.S, it is estimated that the New York cannabis market will grow to $5 billion at maturity. All things considered, will you buy CRLBF stock?
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Aphria is a marijuana company that has been making waves in the last year. The company boasts state-of-the-art manufacturing, research, and distribution infrastructure. It also has strategic investments and alliances to scale its operations around the world. APHA stock currently trades at $20.51 as of 11:12 a.m. ET and has enjoyed gains of over 300% in the last year. Late last year, the company announced that together with Tilray (NASDAQ: TLRY), it will create the largest global cannabis company in the world.Source: TD Ameritrade TOS
Together, the companies will combine two highly complementary businesses to create a leading cannabis-focused company and will be the largest globally by revenue. It will also strengthen its leadership position in Canada, with a complete portfolio of product offerings and carefully curated brands.
This allows the company to capitalize on a $2.4 billion adult-use retail cannabis market in Canada by combining its brands, distribution networks, and world-class facilities. Aphria is also set to take on the European medical marijuana market. With so many exciting things happening for the company, will you consider buying APHA stock?
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Last but not least, we have marijuana real estate giant, Innovative Industrial Properties (IIPR). For the uninitiated, the Maryland-based company focuses on the acquisition, ownership, and management of specialized industrial properties. According to IIPR, said properties are then leased to experienced, state-licensed operators in the regulated medical cannabis industry. In turn, this could make IIPR stock a go-to for more conservative investors looking to bet on marijuana. Why? For starters, the company provides real estate for conventional marijuana sellers. While said sellers have to deal with the risks of market price fluctuations, IIPR will likely continue to benefit. Accordingly, IIPR stock is already up by over 130% in the past year.Source: TD Ameritrade TOS
Regardless, IIPR does not seem to be resting on its laurels just yet. We can see this in the company’s latest operational update posted earlier this week. In terms of year-to-date investments, IIPR has already made three acquisitions. These are properties located in California, Florida, and Texas. Moreover, the company also reported executing three lease amendments, providing additional tenant improvements in Michigan, New York, and Pennsylvania.
Overall, IIPR now owns 68 properties located across the U.S., adding up to approximately 6 million rentable square feet. To investor’s delight, 100% of said properties are currently being leased with an average remaining lease term of 16.7 years across the board. With the company firing on all cylinders now, could it be a good time to invest in IIPR stock?