Cannabis stocks have garnered significant attention in recent years. This comes as more and more countries and states legalize marijuana for recreational and medicinal purposes. According to a report by Grand View Research, the global legal marijuana market size was valued at USD 13.2 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 25.5% from 2022 to 2030.
This trend has led to a surge in the number of cannabis-based companies listed on stock exchanges. Which in turn has attracted a large number of investors looking to capitalize on this burgeoning industry.
What Are Cannabis Stocks?
Cannabis stocks refer to shares of companies that produce, distribute or sell marijuana and related products. These companies may be publicly traded on stock exchanges like the Nasdaq or the London Stock Exchange (LSE). They may also be listed on over-the-counter markets or through private placements.
Investing in cannabis stocks can be a risky proposition. This is partly due to the fact that the industry is still in its infancy. As well as the fact that they are subject to a number of regulatory and legal challenges. Additionally, the cannabis market is highly competitive and there are a large number of companies vying for a share of the market.
Before investing in cannabis stocks, it’s important to do your due diligence and carefully research the company you’re considering investing in. Look for companies with strong financials, a clear business plan, and a track record of success. It’s also a good idea to diversify your portfolio by investing in a range of different companies rather than putting all your eggs in one basket. If this has you keen on investing in the cannabis sector in 2023, here are two companies to consider adding to your stock market watchlist.
Cannabis Stocks To Buy [Or Avoid] In 2023
- Curaleaf Holdings Inc. (OTCMKTS: CURLF)
- Innovative Industrial Properties Inc. (NYSE: IIPR)
Curaleaf Holdings (CURLF Stock)
First up, Curaleaf Holdings Inc. (CURLF) is one of the leading players in the cannabis industry, specializing in both the medical and adult-use markets. Curaleaf cultivates, processes, markets, and dispenses a variety of cannabis products including flower, pre-rolls, vapes, concentrates, and extracts.
In November, Curaleaf released its third-quarter 2022 financial results. In detail, the company reported a loss of $0.07 per share along with revenue of $339.7 million for the 3rd quarter of 2022. Additionally, during the quarter the company reported that it generated $60 million of positive operating cash flow and $71 million throughout the first nine months of 2022.
Year-to-date shares of CURLF stock have fallen by 55.54%. Meanwhile, as of Wednesday’s trading session, Curaleaf stock is trading lower on the day by 4.39% at $3.92 a share.
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Innovative Industrial Properties (IIPR Stock)
Next, Innovative Industrial Properties (IIPR) is a real estate investment trust (REIT) that focuses on the cannabis industry. IIP acquires, owns, and leases properties to state-licensed operators in the medical-use cannabis industry.
This month the company announced its fourth-quarter 2022 dividend. Diving in, IIPR reported that it will pay a dividend of $1.80 per share of common stock for the fourth quarter of 2022. This represents an increase of 24% over the previous year’s dividends. Next, the company has also declared a quarterly dividend of $0.5625 per share of its 9.00% Series A Cumulative Redeemable Preferred Stock. These dividends will be paid on January 13, 2023, to stockholders who are on record as of December 30, 2022.
Year-to-date, shares of IIPR stock have dropped by 59.54%. Meanwhile, as of Wednesday’s mid-morning trading session, IIPR stock is trading lower on the day by 0.92% at $100.69 a share.
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