Is Now The Time To Buy These Top Marijuana Stocks?
As improving pandemic conditions continue to set the reopening trade ablaze this summer, marijuana stocks could take center stage in the stock market today. For the most part, this could be the case as the recreational marijuana movement continues to sweep the nation. Yesterday, the states of Connecticut and Washington D.C. passed legislation, legalizing adult recreational use of cannabis. At the same time, similar bills were passed in Guam and the Commonwealth of the Northern Mariana Island regions as well. With the U.S. cannabis market rapidly expanding this year, I can understand if investors are keen on the sector now.
Now, the passing of these bills does fall on the 50th anniversary of President Nixon declaring the war on drugs. Connecticut governor Ned Lamont highlighted the need for this timely shift as more lawmakers consider the sociopolitical impacts of the criminalization of marijuana. Not to mention, there is also a ripe market for the calming substance now. According to Grand View Research, the legal marijuana market was worth about $9.1 billion in 2020. This figure is projected to grow at a compound annual growth rate of 26.7% through 2028.
If anything, even companies such as Amazon (NASDAQ: AMZN) and Uber (NYSE: UBER) have recently rallied behind decriminalization as well. Given all of this, it comes as no surprise that marijuana players like GrowGeneration (NASDAQ: GRWG) and Green Thumb Industries (OTCMKTS: GTBIF) continue to thrive. Over the past year, both GRWG stock and GTBIF stock are looking at gains of over 180%. By and large, when you consider the current change in federal sentiment paired with the industry’s current momentum, companies and investors alike could benefit. On that note, here are three top marijuana stocks to know in the stock market now.
Best Marijuana Stocks To Watch Before July
- Canopy Growth Corporation (NASDAQ: CGC)
- Tilray Inc. (NASDAQ: TLRY)
- Industrial Innovative Properties (NYSE: IIPR)
Canopy Growth Corporation
Canopy is a cannabis company that is based in Ontario, Canada. The company is a leading diversified cannabis and cannabinoid-based consumer product company. It is known for leveraging on consumer insights and innovation as it boasts a wide variety of high-quality dried flower, oil, infused beverages, edible, and soft gel capsules among others. CGC stock currently trades at $23.15 as of 2:09 p.m. ET. Earlier in the month, the company reported its fourth-quarter and fiscal year 2021 financial results.
Firstly, it posted a revenue of $119.89 million, a 37% revenue growth year-over-year. Specifically, it saw strong-double digit growth across both cannabis and other consumer product businesses. Secondly, the company says that it maintained the #1 position market share of the total flower category in Canada. It has also recently announced a slew of acquisitions to further solidify Canopy’s leadership position in the Canadian recreational market. It also says that it remains on track to achieve a positive adjusted EBITDA during the second half of FY 2022.
In April, the company also announced the launch of Vert, the company’s first Quebec-exclusive brand. “The operation of our Vert Mirabel facility is guided by a team of incredibly passionate growers that are dedicated to bringing locally grown cannabis to Quebec,” said Sylvain Miron, Director, Vert Mirabel. “This product is truly a fusion of Canopy’s cannabis expertise with the Vert Mirabel team’s multi-generational knowledge in greenhouse operations.” With that in mind, will you consider adding CGC stock to your portfolio?
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Tilray Inc.
Tilray is a Canadian pharmaceutical and cannabis company with primary operations headquartered in Toronto, Ontario. In brief, the company’s unprecedented production platform supports over 20 brands in over 20 countries. It also has comprehensive cannabis offerings, help-based foods, and alcoholic beverages. TLRY stock currently trades at $17.00 as of 2:10 p.m. ET and has been up by over 90% year-to-date. On June 8, 2021, the company announced the launch of a new medical cannabis brand, Symbios.
Symbios will complement the company’s existing medical brand portfolio in Canada. It will help provide a broader spectrum of formats and unique cannabinoid ratios at a better price point. This would include flowers, oils, and pre-rolls for their health and wellness regiment. Tilray also announced new high-potency, medical cannabis topicals under the Aphria brand that is designed to target inflammatory joint diseases by regulating tissue inflammation when applied topically to the skin.
The company has just completed its announced business combination with Aphria. The combined company will operate as Tilray and brings together two highly complementary businesses to create the leading cannabis-focused consumer packaged goods company with the largest geographic footprint in the industry. Tilray will now focus on business integration and accelerating its global growth strategy. As its Canadian and German markets begin to re-open, Tilray is well-positioned to transform the industry with its highly scalable operational footprint and curated portfolio of diverse medical and adult-use cannabis brands. For these reasons, will you consider watching TLRY stock?
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Innovative Industrial Properties Inc.
Innovative Industrial Properties (IIPR) is a leading provider of real estate capital for the medical-use cannabis industry. As a real estate investment trust (REIT), the company must distribute through a dividend to its stockholders at least 90% of its taxable income. IIPR stock currently trades at $185.66 as of 2:10 p.m. ET and has been up by over 80% in the last year.
On the operational front, IIPR has not been sitting idly amidst these exciting times for the marijuana industry. In May, the company made three key property acquisitions while both expanding and entering into long-term leases. Firstly, IIPR acquired a 239,000 square feet industrial space in Pennsylvania and deepened its partnership with Parallel, a leading cannabis well-being company. Following that, the company closed the deal on an 85,000 square feet location in Michigan. After doing so, it entered into a long-term lease with Sozo Companies for continued use as a cannabis production site. Late last month, the company also announced that it had acquired a Massachusetts property as it enters into a long-term lease with Temescal Wellness.
If all that wasn’t enough, IIPR continues to make strides on the financial front as well. In its recent quarter fiscal posted last month, the company posted solid figures across the board. Notably, it saw total revenue for the quarter more than double year-over-year. To investors’ delight, IIPR’s earnings per share also jumped by 45% over the same time. All things considered, would IIPR stock be a top watch for you now?
