Are These The Best Cannabis Stocks To Watch In January 2021?
Cannabis stocks have piqued investors’ interests recently. The November U.S. election certainly helped lift up the sentiment in the space. This undoubtedly helps to position some of the top cannabis stocks on investors’ radar again. For a relatively young industry with lots of potential, don’t be surprised if these pot stocks break out in the near future. Of course, this is an industry that is highly dependent on legislators to be able to grow its reach. Therefore, there is a lot to consider before making an investment decision.
According to Stifel, global marijuana sales will soar to $200 billion within this decade. With the industry has the potential to turn into such a massive market, it is understandable for investors to make a list of top pot stocks to buy before Biden takes over the White House. But the truth is unless Congress approves decriminalization and the president signs it into law, the cloud of uncertainties will still hover around the industry.
Is There Still Big Potential In Pot Stocks?
Given that many analysts believe top pot stocks will continue to see upward momentum in 2021. It could potentially benefit your investment portfolio if the right call is being made. Now, under the new administration, I guess it’s safe to say that the government seems to be taking a lighter stance towards the industry. As you may already know, Vice President-elect Kamala Harris was the Senate sponsor of the Marijuana Opportunity Reinvestment and Expungement (MORE) Act. For this reason, it casts a strong vote towards decriminalization… and hopefully legalization in the future.
As we finish the past year like no other, investors are starting the year ‘high’ on weed. No, not literally. What I really meant was top cannabis stocks like Trulieve Cannabis Corp. (TCNNF Stock Report) and Canopy Growth (CGC Stock Report) started the year on a strong note. And this could simply because of the upcoming Senate runoff races in Georgia. Should the votes go in favor of the Democrats, we could see another run in top cannabis stocks in the stock market today. Therefore, it’s natural that excitement began to grow for marijuana stocks. But instead of trying to pick winners among the crowd, investors may be better off looking for profitable cannabis stocks to buy. With all that being said, do you have a list of top cannabis stocks to watch as we start 2021?
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Top Cannabis Stocks To Watch In The Stock Market Today
- GrowGeneration Corp. (GRWG Stock Report)
- Aphria (APHA Stock Report)
- Altria (MO Stock Report)
Top Cannabis Stocks To Watch This Month: GrowGeneration Corp.
GrowGeneration Corp. (NASDAQ: GRWG) is one highly profitable marijuana stock to watch and it’s also the one with the fastest growing quarterly results. GRWG stock is up 880.98% in 2020 and could continue posting gains in January 2021. The company’s quarterly earnings expanded 217.9% year over year in the most recent quarter. For starters, Grow Generation is the largest chain of specialty hydroponic and organic garden centers in the U.S. with 36 storefront locations. In essence, the company supplies products necessary for growing cannabis and works closely with major marijuana companies in the U.S. market.
From its most recent financial report, the company has reported a revenue of $55 million for Q3 2020. It also gave full-year revenue guidance of between $185 million and $190 million. Additionally, the company continued strategic acquisition and expansion plans in the quarter, giving GrowGen more growth potential for 2021. It was easily one of the best performing cannabis stocks for 2020. In essence, GRWG stock showed greater market stability than other pot stocks in the U.S. in 2020.
As decriminalization efforts advance in the U.S. and the cannabis industry continues to expand on a state-by-state basis, there’s a great chance that GrowGeneration’s products are going to be in high demand. And the company has been busy preparing the groundworks for this. For instance, it set up stores in states with the highest potential growth in cannabis demand. The company has also sourced quality products which can then be sold to cannabis cultivators. As the company is taking steps to capitalize on the growing pot opportunity, shareholders could be in for big rewards. As GrowGen continues expanding its retail locations in new cannabis markets, GRWG stock is one cannabis stock to watch right now.
Top Cannabis Stocks To Watch This Month: Aphria
Canada’s biggest pot grower by revenue, Aphria (NASDAQ: APHA) had a good start in 2021. The company has been in the limelight after news of it merging with Tilray (TLRY Stock Report). The could cement the combined entity’s position as a global leader in fully integrated cannabis production. The merger is expected to deliver significant cost savings. In addition, it will lead the new entity to better compete in the freshly expanded U.S. adult-use market. Should this deal go through, it’ll also be strongly positioned for growth in the E.U., thanks to Tilray’s investment in production facilities in the region.
In November 2020, Aphria purchased SweetWater Brewing. SweetWater Brewing is a U.S. based craft brewer which focuses on the cannabis lifestyle business via its flagship “420” brand. You can see how this synergizes with Aphria’s business. In essence, if federal regulation changes occur Aphria will be set up to enter the U.S. with THC-infused beverages and other cannabis derivatives.
Notably, it’s important for investors to realize that shall legalization take place in the U.S. in the future, APHA stock could be a cannabis stock that sees gains. With the Tilray merger and the recent acquisition of SweetWater Brewing, would you say that APHA stock is a Canadian marijuana stock with strong growth potential? If yes, would this make APHA stock worth adding to your watchlist?
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Top Cannabis Stocks To Watch This Month: Altria
Looking for the best pot stocks to buy doesn’t always involve direct investments in marijuana companies. Sometimes, investors could bet indirectly on the institutional investors that have a big stake in cannabis companies. For instance, investors can invest in a tobacco company Altria (NYSE: MO) as a way to profit from marijuana. Back in December 2018, Altria acquired a 45% stake in Canadian marijuana producer Cronos Group (CRON Stock Report) for $1.8 billion. Altria also has a warrant that allows it to increase its stake in Cronos to 55%. Should Altria decide to exercise its warrant, it will gain majority control of Cronos. That could pave the way for Altria to take over the whole of Cronos. Of course, this is speculative at best.
With Altria’s expertise in regulatory matters and distribution capabilities, there is an opportunity for Cronos Group to grow substantially in the years to come. Besides, Altria’s larger balance sheet could be very potent for purchasing other marijuana businesses. That could enable Altria to diversify its business, perhaps even building up a leadership position in the cannabis industry.
While Altria’s shares have yet to recover to their pre-pandemic level, its dividends have been reassuring. Currently, its dividend yield is around 8%. This supports Altria’s status as a top dividend stock. That’s considering that its yield is quite high relative to that of other big companies. Besides, it has been consistent even during difficult times like now. For this reason, MO stock is one attractive option to have if you are looking for a steady stream of income and yet have some exposure to the marijuana industry.