It is no surprise that the marijuana industry is growing and growing. There are a huge amount of companies that engage in research, distribution, development, or sale of both recreational and medical marijuana.
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Best Marijuana Stocks For 2020
Cannabis itself has only begun to gain acceptance more widely in recent times.
Best marijuana stocks began to receive hype when recreational sales started in Canada. With sales becoming legal in one form or another, producers have begun to be listed on large US exchanges, with their counterparts making the choice to seek out listings in Canada too.
Are you looking for the best marijuana stocks to buy now? Read on to learn everything you need to know.
The Growth Of Marijuana Stocks
So can you find decent marijuana stocks on major exchanges at the moment?
All in all, the profit for the industry is quite small as many producers of marijuana are having to spend a lot of money to grow. Sales growth is still large but is not as big as many assumed it would be.
Both an oversupply and undersupply of marijuana has caused a dent the marijuana stocks to buy in business.
The industry, however, and any stocks pertaining to it, should be watched, as there is potential for plenty of long-term growth. But just like many other investments, investors need to look at marijuana stocks objectively and analyze them for the best marijuana stocks opportunities.
Trends That Affect Marijuana Stocks
There are analysts that believe the business of selling marijuana could be a competitor to the pharmaceutical and alcohol industries.
The marijuana industry may also have the ability to rake in bigger deals, some of these in particular with tobacco and beverage companies.
Legalisation of Hemp
Legalisation of hemp within the US has made many companies attempt to create hemp themselves. They have either created hemp by themselves or created CBD products that they then sell through bigger retailers.
These actions could help sales to grow and could also help cannabis to be destigmatized.
Are Cannabis Stocks Worth Buying?
Marijuana stocks are in actuality very volatile. Putting money into these stocks at the moment is really more speculative than anything else.
And why are they such a risk? Besides the possibility of overvaluation, there are some other aspects that can make putting money into marijuana dangerous.
Weed is actually illegal on a federal level in the United States. While protections exist for legalization of marijuana, the Department of Justice is still able to affect large change.
The regulation of cannabis is very important. Making sure products are what they are can be a factor that affects the growth of businesses. Having solid practices can be confirmed by a cannabis risk management group.
Challenges of Cannabis Business
Companies in the industry also are presented with numerous banking challenges. Even though this is changing, banks are not servicing companies within the industry. This presents companies going into the marijuana industry with a significant problem.
There’s also the fact that the industry is still in its formative stages. As a result, it is difficult to tell how things will transpire and what direction the industry will move in.
Despite this, investors that are willing to take on some portfolio risk can find themselves in an advantageous position. If you’re looking to do the same, read below for some ideas on how you can get into marijuana stocks.
How Marijuana Stocks to Buy Now?
Below are some marijuana stocks that have the lowest 12-month price to sales ratio within the whole sector. As a quick primer, the price to sales ratio is an indicator of current stocks that have turned a profit so far.
Lower ratios indicate there is less being paid per dollar of revenue that is generated by a company.
1. Village Farms International Inc
Village farms operate greenhouse facilities for agriculture. Their primary purpose is growing a variety of produce including bell peppers, tomatoes and cucumbers. However, they have recently begun to move towards the growth of cannabis and marijuana stocks.
2. Amyris Inc
Amyris prides itself on being an industrial biotechnology company. Their main prerogative is providing bioscience solutions, while also distributing chemical products.
Amyris has begun to develop platforms that biosynthesize cannabinoids via the use of fermentation. This allows them to create reliable and pure products at a low price.
3. Aphria Inc
Operating in Canada, Aphria produces, supplies and sells both recreational and medicinal marijuana. Their product range includes a wide variety of items, including cannabis oil or CBD vape pan.
They also recently were able to procure a cultivation license from Health Canada, allowing the construction of a cannabis greenhouse building.
Production space is being extended by 1.3 square million feet alone for much more annual capacity for marijuana stocks to buy.
The Fastest Growing Marijuana Stocks By Revenue
The next few stocks have brought in the most amount of year-on-year growth in the last quarter of the year.
These sales are an indication of how business is growing and how much more money is being made so it can cover costs. This money can then be reinvested or returned to participating shareholders in marijuana stocks to buy.
4. Valens GroWorks Corp
This biotechnology company is based in Canada and specializes in the processing and formulation of cannabis. They also cater to analytical testing.
5. Harvest Health & Recreation Inc
Harvest Health is a company specializing in medical marijuana. As well as cultivating marijuana, they also have production facilities and dispensaries.
6. GW Pharmaceuticals PLC
This biopharmaceutical company has its headquarters in the UK. Their therapeutics are based around discovering and developing products that help with the treatment of Multiple Sclerosis as well as neuropathic pain.
Marijuana Stocks Moving The Quickest
The stocks below are notable for their high return in the past 12 months and it change the experience in vaping technology.
7. Innovative Industrial Properties Inc
This company is notable for its lease and owning of industrial properties. It focuses on acquiring construction and development within the marijuana industry.
8. Cara Therapeutic Inc
Cara therapeutics focus on research and development of pharmaceutical products. They also work on the commercialization of opioid-based items, cannabis products, and anesthetic drugs.
Should You Invest In Marijuana Stocks?
With the volatility in the market at the moment, it is not apparent which the best marijuana stocks will yield the most return in the long term. People looking for the best marijuana stocks to buy now should treat them like growing IPOs.
When there is an indication that the industry has begun to curb losses, then the state of these stocks will likely improve. People wishing to get into buying stocks need to have a high tolerance for risk and need to cut their losses if need be marijuana stocks to buy.
Want to keep up to date with more finance and cannabis news? Take a look at some of our other articles.