Are These Pot Stocks Well Positioned To Lead The Pack?
The coronavirus pandemic has caused great volatility in the cannabis industry, which has made it harder to find the best marijuana stocks in 2020 than usual. Recently, Aurora Cannabis (ACB Stock Report) and other pot stocks dipped after Aurora said it will cut staff in Europe and scale back other operations, marking the latest pullback of the industry. Don’t get me wrong, this is not to say that there’s no longer opportunity in the marijuana space. Rather, investors should look at all pot stocks with great potential. The potential can be characterized by solid business plans, strong balance sheets with manageable debt levels, and consistency gains in stock performances. With these criteria in place, it could help investors filter out the best marijuana stocks to buy.
Although Covid-19 has brought detrimental effects for global businesses, pot stocks around the world are showing signs of rebounding. This comes after a strong demand recorded during the implementation of stay-at-home orders. The reason behind the surge in demand could simply be due to the change of nature in the business. From recreational and medical uses to become “essentials’ during the pandemic has driven a huge demand for marijuana consumption. And because people have nowhere to go during the pandemic. While some turn to gaming, movies, and other entertainment, there are a fraction of people turning to cannabis.
As a result, the cannabis industry could shoot past $15 billion in sales by the end of this year alone. In several states, the dramatic increase in sales means that the $15 billion marks is more in reach than ever before. But just how will this happen? Let’s dive in to have a closer look at the cannabis stocks that are making big moves recently.
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Best Marijuana Stocks To Buy In 2020 [Or Avoid]: Curaleaf Holdings
Curaleaf Holdings (CURLF Stock Report) is one of the fastest-growing U.S. marijuana stocks in the market. No pot stock is expected to generate more robust sales by 2024 than the company, which could well surpass $2.5 billion if Wall Street analysts’ estimates are correct.
As of today, Curaleaf has more operational dispensaries than any other U.S. multistate operator (MSO). For this reason, the company could continue to grow its retail store count organically and through acquisitions. Recently, CURLF stock has grown substantially with the company’s addition of its Select cannabis oil brand. With this acquisition, the company extended its presence to as many as 12 states around the U.S. Should the company successfully acquire Grassroots, this would further push a higher market MSO share, in turn lifting CURLF stocks.
Because of its massive growth potential and strategic acquisitions, many believe that Curaleaf is in a good position to see a lot of upward momentum in the near-term. With all that in mind, could CURLF stock be the best marijuana stocks in the market right now?
Best Marijuana Stocks To Buy In 2020 [Or Avoid]: Tilray Corporation
To many marijuana stocks investors, Tilray (TLRY Stock Report) is a marijuana evangelist with one single aim, to push the public legitimacy of cannabis use. Certainly, we do not know if the company will be able to achieve its lofty goal. But the company has been making strong partnerships and growing its networks. All that work is to cement the company’s position as a force to be reckoned with.
One of the reasons why Tilray is a marijuana stock to watch is because of the strong growth potential it entails. The company posted a 14.3% increase in the amount of bulk hemp product sales compared to the prior year, along with a 23% increase in adult-use sales. These positive sales figures along the steps taken to stabilize its cash flow issues are working for Tilray. On top of that, Tilray also believes that European operations will be more successful than their Canadian counterparts. The denser population and higher operating efficiencies enable the company to export its product tariff-free to the EU countries.
In the European market, Tilray is able to differentiate itself through more cost-effective cultivation. And this is especially important, as the company has seen the rising cost of goods sold per gram of bulk hemp product over time