Top 10 marijuana stocks to invest in in 2021
Are you looking for a healthy return on investment by redeeming the marijuana stocks? With numerous medical benefits slowly unfolding, we can see the growth potential of these stocks.
Your current medical potential obliges you to keep an eye on the best medical marijuana stocks that you can’t miss out on! With these stocks in your portfolio, you can make substantial gains in a short amount of time.
If you’re still wondering how to invest in marijuana stocks, this article will help you find the best tips for 2021!
We did the research for you!
All you have to do is decide which is the best choice!
So without further ado, let’s take a look at the top 10 marijuana stocks you can’t miss in 2021.
Founding year: 1998
Market value: $ 2.8 billion
GW Pharmaceuticals is known for herbal CBD products.
GW Pharmaceuticals is at the forefront of making therapeutics from CBD through the release of Epidiolex for children and has made a name for itself in the CBD-based medicines.
Although the company’s finances had gone through a purple stain, the silver lining is sales growth. The revenue growth from $ 10 billion in 2017 to a whopping $ 440 billion in June 2020 is a positive sign for investors.
On the flip side, growing spending has made the bottom line red, although losses have shrunk over time.
As losses shrink from $ 29 million to a meager $ 9 million, things look good for GW Pharmaceuticals.
The product pipeline is more interesting.
With the recent approval of Epidiolex’s oral solution for the treatment of TBS, we’re sure it can prove to be one of the best marijuana stocks in the fight against seizures.
Year found: 2013
Market value: $ 10 billion
With the strong numbers and robust line of products, the canopy growth has proven itself in the CBD market.
Canopy Growth boasts immense market valuation. Followed by strong industrial support from alcohol giant Constellation Brands, it is poised to be the giant in the CBD market.
We’ve seen the tumultuous numbers over the past few years with Canopy Growth, but the success the brand has achieved has been phenomenal.
With the recent launch of standalone websites for the sale of CBD products, the company has taken a giant step towards becoming a global leader in CBD-based products.
Canopy’s future can only get better from now on! Let’s sit tight and invest to ride the profit roller coaster with this mega CBD brand!
Founding year: 1985
Market value: $ 75.77 billion
Altria, with nearly 40% stake in Canada’s largest marijuana company, Cronos Group, is set to resume its boom!
With the recent election of Joe Biden as US president, the decriminalization of cannabis is on the agenda.
As Altria looks forward to taking control of Cronos by holding more than 50% of the seats on the board, Altria is repositioning itself in a marijuana company.
In the past, Altria has suffered badly in terms of its financial condition, with the stock falling steadily over the past 5 years. Including the massive 9% discount, the loss on the stock is close to 3.6%, which is not attractive.
In addition, their most recent project at Juul Labs took a cumulative write-off of nearly $ 9 billion in 6 months.
Founding year: 2014
Market value: $ 4.93 billion
A very young runner in the cannabis market, Aphria can take advantage of the rising marijuana stock price as it appears to be quite undervalued.
The company, which is currently trading around $ 16, has been ignored by many but has seen some really encouraging results.
With modest losses close to $ 5.1 million in the first three months of fiscal year 21, it beat the analyst’s estimate by 50%.
Aphria is a must have in your portfolio as it has almost 16% Y-on-Y sales growth and greater efficiency, which is reflected in the cost of sales.
With the change in business activity allowing it to increase market penetration, it has started the price war against the big fish!
Don’t miss this multi-digger with 11 out of 13 bullish analysts on this stock!
Green Thumb Industries Inc.
Founding year: 2002
Market value: $ 8.20 billion
The GTII’s case is a giant and cannot be denied.
With a loss of more than 60% over the past 5 years, GTII is trading 7.04 times the PB rate, resulting in an over-value stock of more than 150%.
With the company’s negative PE ratio compared to the industry PE ratio of 43.6X, the numbers for GTII don’t seem that good.
On the positive side, with the opening of the marijuana market, the sector is projected to see positive growth of 60.8%, which is twice the market growth.
With the positive sector growth, GTII can see growth close to 100% of its current share price, making it a strong competitor in this sector!
Analysts were fairly bullish on EPS in relation to GTII. Although the current EPS is negative with the opening of the marijuana sector, GTII can see EPS grow four times by 2023.
Since the ROCE has developed positively in the last year, it looks good for GTII to invest in it!
Innovative industrial real estate
Year found: 2016
Market value: $ 4.66 billion
At a time when the cannabis industry was just too young compared to its counterparts like alcohol or tobacco, IIPR was evolving into a REIT. With the strong growth in recent years and up more than 150%, this stock is one of the strongest picks.
As early as 2018, the company began leasing medical marijuana production with just 9 properties.
In two years real estate growth was 6 times which accelerated in the first half of fiscal 20.
The stock’s financial health is very positive, along with a strong focus on future contributions.
With forecast earnings of over $ 200 million through 2023, the stock is still undervalued compared to its industry peers.
Strong past gains, backed by the stock’s lucrative valuation, make it a must have in the portfolio for 2021.
Founding year: 1868
Market value: $ 12.66 billion
With the ecstatic growth in the Hawthrone division by a whopping 72%, SMG has had the best returns from COVID19.
As WFH became the norm, the home garden began to find its way into our lives.
This resulted in SMG’s garden products growing by more than 20%, which is nearly 70% of their sales.
Hawthorne, with its expertise in hydroponic production distribution, saw tremendous demand due to its soil-free ability to grow crops.
These products are an essential part of cannabis growth, making it a direct beneficiary of marijuana legalization.
Since the result looks better at a rate of more than 10%, SMG has a very good chance of offering you a return of 15-20% within a year.
Since the PE ratio is the same as the US chemical sector’s PE ratio, SMG appears to be slightly overvalued.
However, with long-term assets of over $ 2 billion and a very good current quota, SMG seems like a healthy choice during the growth of the booming marijuana market!
Year of foundation: 1945
Market value: $ 41.06 billion
When a brand is in the limelight due to COVID19, it has to support Constellation Brands with its Corona Beverages product line.
Investing in Constellation Brands may be the safest choice if you are a risk averse investor. By diversifying into 4 different sectors, the risk was reduced!
In 2017, a share of almost 10% in CGC was achieved. In 2018, the brand almost quadrupled its stake by investing 4 billion in CGC.
This creates the fourth source of income!
Constellation Brands has strategically diversified its business with exercisable warrants that give the brand an almost 55% stake in CGC when exercised.
CGC’s share price has suffered lately, which has resulted in moderate numbers for STZ as well.
There are no fewer reasons to like STZ, however.
In particular with the expansion of the brandy product line through the takeover of Copper & Kings, the portfolio of STZ has become even larger!
Year found: 2012
Market value: $ 4.69 billion
Cronos enjoys the deep pockets of Altria and has started expanding worldwide.
With its recent entry into the Israeli drug market, Cronos has made its intentions clear. ie growth!
And it’s absolutely possible after seeing amazing sales growth!
180% year-over-year sales growth during the pandemic!
The snowflake model shows very positive health for the company, along with financial data that predicts five times revenue growth in 2025.
CRONOS ‘annual returns of close to 40% and the undervaluation of the stock make it a perfect buy!
The PE ratio of CRONOS is close to 36X, which is 10X less compared to the industry.
Supportive PB rates with strong forecasts for industry growth make this a very positive buy in the marijuana sector!
One company that deals exclusively with the cannabis industry is Curaleaf Holdings. The Massacheutus-based company has an inspiring medical story for every entrepreneur!
Today, with a huge empire in the US, it has kept customer satisfaction as its primary goal.
His beginnings in medical marijuana are slowly moving in the recreational direction. With the change of the target group to adults, CURLF would like to make optimal use of its vertical integration!
With recreational marijuana legalized in several states, CURLF could turn out to be the dark horse.
From strategic positioning to infrastructural support, everything speaks for CURLF. With more than 14 acquisitions since going public, CURLF is on an expansion course.
With a staggering result for five consecutive quarters and a downright positive EBIT, it has approached the greener numbers according to GAAP principles.
Betting against marijuana? Don’t miss CURLF.
Click here to rate this post!
[Total: 0 Average: 0]