Do You Have These Top Cannabis Stocks On Your Watchlist?
Cannabis stocks have been on a roll in the stock market this week. This is thanks to an announcement from U.S. Senate Majority Leader Chuck Schumer on Monday. Schumer and two other Democratic senators announced plans to push for federal legalization of marijuana in the U.S. For investors, this likely incentivized the current rallies in the marijuana sector. Even Wall Street appears to be supporting this movement. Notably, investment bank Craig-Hallum encouraged investors to consider the top marijuana stocks earlier on Tuesday. It mentions that federal legalization could cause a “3x upside” in several stocks. Ideally, should this be the case, I could see why investors are now looking for the best cannabis stocks for their portfolios.
Now, more than ever, consumers are using the substance. This is because of the pandemic keeping people at home. Many would turn to the calming substance amidst a global crisis. Making marijuana accessible to the entire country would naturally mean huge tailwinds for the local cannabis market. Even before this, some of the top players in the industry have seen unprecedented growth. Take Innovative Industrial Properties (NYSE: IIPR) and Hexo (NYSE: HEXO) for example. Both stocks have more than quadrupled since the March lows. Given the positive news this week, you might be considering investing in the sector. Well, if you are, here are some of the top cannabis stocks to watch now.
Best Cannabis Stocks To Watch Right Now
- Aphria Inc. (NASDAQ: APHA)
- Cronos Group Inc. (NASDAQ: CRON)
- Canopy Growth Corporation (NASDAQ: CGC)
- GrowGeneration Corporation (NASDAQ: GRWG)
Starting us off is Ontario-based cannabis giant, Aphria. It is an international producer and distributor of medicinal and recreational cannabis products. Back in December, it announced a merger with pharmaceutical cannabis company, Tilray (NASDAQ: TLRY). The duo essentially makes up the largest global cannabis company based on revenue. In its recent quarter fiscal posted in January, the company saw a 99% year-over-year surge in net cannabis revenue. If anything, there looks to be a growing demand for the company’s offerings. Accordingly, APHA stock has skyrocketed by over 240% in the past year, hitting a new all-time high yesterday. Current industry tailwinds aside, the company has also been busy bolstering its offerings.
On January 26, the company announced a new beverage product line known as Oasis Premium Hard Seltzer. In terms of its core business, Aphria also revealed that it would be adding topical cannabis products to its adult-use brand Solei. As the cannabis-infused cream can be applied to the skin, it does make for a more accessible means of cannabis consumption. As things appear to be looking up for the U.S. cannabis industry, Aphria seems to be ready to serve. Could this mean big gains for APHA stock moving forward? I’ll let you decide.
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Cronos Group Inc.
Another top cannabis player in focus right now would be Cronos. The company produces and distributes its cannabis-based products across five continents. Its diverse portfolio consists of a global wellness platform, two adult-use brands, and three hemp-derived Cannabidiol (CBD) brands. Given its wide selection of offerings, Cronos would be a prime choice for consumers looking to diversify their cannabis experiences. Similar to our other entries, CRON stock surged by over 18% since this week’s opening bell. In light of all this, you might be asking, how does it fare against the competition?
Well, in its third-quarter fiscal posted in November, the company reported solid figures. Cronos saw a 96% year-over-year leap in total revenue for the quarter. It also reported ending the quarter with $1.1 billion in cash on hand. The company cites growth in the adult-use Canadian market, Israeli medical cannabis market, and key acquisitions as growth drivers. On top of all that, the company also continued to expand its cannabis research scope, rebranding its research arm to Cronos Research Labs. Despite the coronavirus pandemic affecting physical store sales, Cronos continues to push forward. Do you think this makes CRON stock a top cannabis stock to watch now?
Canopy Growth Corporation
Canopy Growth is another top name in the industry right now. The leading cannabis-based consumer product company is considered one of the earliest movers in the Canadian cannabis market. Because of this, investors often look towards CGC stock when there is news shaking up the industry. Evidently, we can see this as it has gained by over 10% just this week. As Canopy Growth is slated to release its third-quarter fiscal on Tuesday before the market opens, investors could be watching closely.
In its second-quarter fiscal posted in November, the company saw a 76% year-over-year rise in total revenue. Throughout the quarter, Canopy Growth reported strong momentum across its core businesses as well. In detail, it improved market share in Canada, saw accelerated U.S. product adoption, and maintained its leading market share in Germany. More recently, the company also launched a new pet product line with celebrity Martha Stewart. The Martha Stewart CBD for Pet product line consists of a wide array of “scientifically-backed CBD wellness solutions” for dogs. Through this, Canopy Growth has basically gained another addressable market. As pet owners spend more time at home, they would be inclined to pamper their furry friends more. With the company showing no signs of slowing down, will you be watching CGC stock?
Last but not least, we will be looking at GrowGeneration. Unlike the rest of our entries, it is a hydroponics supplier. In fact, it is currently the largest player in the U.S. with 40 retail and distribution centers. The likes of which sell thousands of products to commercial and home growers. On top of that, its commercial team consists of industry-leading professional consultants that are ever ready to provide advice. For investors looking to make a pick-and-shovel play on the cannabis industry, GRWG stock appears to be in focus. Over the past year, it has jumped by over 1,000%. It also hit a record high during intraday trading yesterday as well.
Back in November, GrowGeneration saw green across the board in its third-quarter fiscal. The company reported massive year-over-year leaps of 152% in total revenue and 246% in cash on hand. Furthermore, GrowGeneration doubled its earnings per share over the same period as well. Since then, the company has kept up its momentum. On Monday, it acquired Grow Depot and its hydroponic garden centers. This expanded its Maine-based portfolio. Similarly, it also acquired Washington-based Indoor Garden & Lightning just last week, expanding its number of brick-and-mortar stores. Given GrowGeneration’s aggressive expansion strategy, would you consider GRWG stock a top cannabis stock now?