Top Weed Stocks To Buy Now
Marijuana stocks have given cannabis investors nothing but false starts over the past few years. Most recently, there were a plethora of issues facing the industry throughout 2022, including inflation, overproduction, lack of capital, job losses and cratering stock prices.
top weed stocks to buy now
The long-term prognosis for the cannabis industry is good. Ultimately, the following nine picks look like the best marijuana stocks (and funds) to benefit from this ongoing growth and maturation.
Still, IIPR remains one the best REITs on Wall Street, as well as one of the best marijuana stocks, according to analysts. Piper Sandler analyst Alexander Goldfarb has an Overweight rating (the equivalent of Buy) on IIPR, with a $140 target price, some 55% higher than current levels.
A total of 39 states, as well as Washington, D.C., have legalized medical marijuana. Twenty-one states and D.C. have legalized adult-use cannabis. As more states legalize recreational weed, Curaleaf should be able to continue to grow its business organically and through acquisitions.
Cresco is one of Wall Street's favorite marijuana stocks. Of the 19 analysts following the stock, 13 give it a Strong Buy, three say it's a Buy, and three have it at Hold. Plus, the average target price of $6.88 implies the stock will more than triple over the next 12 months or so.
Not forgetting that this is an article about the best marijuana stocks, British American Tobacco invested an additional $5.1 million last March in Canadian cannabis producer OrganiGram Holdings (OGI (opens in new tab)), bringing its stake in the company to 19.5%. The two continue to collaborate on new cannabis-related products.
By comparison, the MJ ETF follows the performance of the Prime Alternative Harvest Index, which in addition to tracking cannabis stocks, also includes cigarette manufacturers such as Altria (MO (opens in new tab)) and a 20.1% weighting in the ETFMG U.S. Alternative Harvest ETF (MJUS (opens in new tab)). As a result of the ETF weighting, the Canadian content in MJ is slightly less than 42%.
If you thought last year was difficult for the broad-market stock indexes, take a closer look at how marijuana stocks fared. The vast majority of publicly traded pot stocks lost more than half of their value in 2022 as high inflation, growing competition, and a lack of cannabis reform on Capitol Hill weighed on the industry.
But a big down year for weed stocks may be the green light investors have been waiting for. Research firm BDSA is still estimating that global cannabis sales will nearly double from $30 billion in 2021 to $57 billion by 2026, with the U.S. accounting for roughly three-quarters of this $57 billion. With consumers treating cannabis as a nondiscretionary good and buying pot products even in the face of high inflation and a weaker economic outlook, it could be a smart industry to invest in during the ongoing bear market.
IIP is also one of the few cannabis stocks benefiting from the lack of progress reforming federal marijuana laws. The company's sale-leaseback program seeks to acquire facilities with cash and immediately leases the property back to the seller. These sale-leaseback agreements put cash into the hands of multistate operators (MSOs) that might otherwise have limited access to basic banking services. In return, IIP lands long-term tenants.
Which cannabis stocks are the best buys as the industry slims down? Cresco Labs (OTC: CRLBF) and Green Thumb Industries (OTC: GTBIF) are two top-shelf MSOs that have what it takes to survive the industry's early growing pains. Here is why investors might want to buy these two cannabis stocks in February and hold them for the long term.
It will also create several important cost-saving synergies, and give the new entity a commercial presence in every major cannabis market in the United States. This transformational deal should cement Cresco's competitive position as a leader in the high-value U.S. cannabis market, making it one of the safer cannabis stocks to own in this challenging operating environment.
George Budwell has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ayr Wellness, Cresco Labs, Green Thumb Industries, Organigram, and Trulieve Cannabis. The Motley Fool recommends HEXO Corp. and SNDL. The Motley Fool has a disclosure policy.
The lack of reforms at the federal level has adversely hit investor sentiment about cannabis stocks. Nonetheless, Wall Street analysts are upbeat about Curaleaf, Innovative Industrial Properties, and Jazz Pharmaceuticals based on the massive growth prospects in the marijuana space. However, investors should remember that most of the cannabis stocks are generally very volatile and high-risk investments.
Investors looking to take advantage of cannabis stocks on sale should consider the reasons behind the deep discounts because they differ by company and country. There has been the impact of a broader downturn, and there is more beta for cannabis stocks, notes sector director Kristoffer Inton, but he sees companies operating in U.S. and Canadian markets facing different sets of challenges.
Cannabis stocks have benefited from more customers consuming the product where it is legal in the U.S., and Inton feels that federal-level prohibition is not as big a problem for U.S.-based cannabis companies compared to some other issues.
Despite cannabis stocks having a very challenging year, this quarter has been quite strong. The New Cannabis Ventures Global Cannabis Stock Index is up 31.4% since 9/30, when it posted an all-time closing low:
At 420 Investor, we focus on 31 stocks and hold just 12 currently in our model portfolios. We are careful to avoid heavily promoted stocks, we look for management teams that are strong and we pay attention to the financials and are always checking the story, too.
Industry analysts generally see a murky path forward for all of the cannabis reform bills on Capitol Hill, but but they feel that meaningful steps towards legalization are expected to continue to spark interest in cannabis stocks.
The final stock on my list is Tilray (TSX:TLRY), a Canada-based marijuana producer. Tilray has reported 14 consecutive quarters of positive adjusted EBITDA (earnings before interest, tax, depreciation, and amortization), which is a rarity among TSX pot stocks.
As the marijuana industry grows, many investors have taken notice, leading them to consider cannabis investing as a lucrative portfolio addition. But in a quickly changing stock market, what are the potential risks and rewards of investing in marijuana and which marijuana stocks are the best to buy now? Is investing in the marijuana industry really a "green gold rush?"
The great part of owning risky stocks is the chance at reaping high rewards. You could lose money, but if things go well, you might reap an impressive return on your investment. Just look at the 660% return investors made on Canopy Growth Corp. between 2016 and today.
The legalization of cannabis across the world, and especially in the U.S. has created amazing opportunity for investors. As more states legalize cannabis for both recreation and medicinal uses, investors may be able to capitalize on the attractive price of cannabis stocks, with substantial potential for future growth.
Not all cannabis stocks are created equal. They see highs and lows like any other industry, so it's important to do your research and get to know the ins and outs of investing in cannabis. Money Morning gurus are on top of it, check out their picks for the best marijuana stocks to invest in.
This article takes a deep dive into the marijuana industry, in search of the best marijuana stocks today. Surprisingly, there are over 100 to choose from with full or partial exposure to the marijuana industry.
Growth stocks that are priced for perfection can disappoint investors and produce underwhelming total returns, even if the original thesis about strong underlying growth rates for the industry proves true.
In recent years, we have already seen this play out to some degree. Despite further legalization of marijuana in additional countries and states, the stocks of many cannabis companies have underwhelmed, as profit margins are slim for many of these companies, and since valuations were too high, which caused multiple compression headwinds over the years.
The Horizons Marijuana Life Sciences Index ETF has moved down since our last update. Share price declines in a range of cannabis stocks have caused its net asset value to decline, and rising interest rates and high inflation lead to lower interest from investors when it comes to investing in oftentimes barely profitable growth stocks.
This primarily includes consumer goods companies (beverage stocks, tobacco stocks) that have ventured into the marijuana space, but that continue to generate the majority of their revenues and earnings in another industry. Our top five picks among these companies are analyzed below.
Investors get a dividend that yields 1.4% from Constellation Brands, which is not really a lot, but better than what one receives from pure-play cannabis stocks, as those generally make no dividend payments at all. At the same time, the stake in Canopy Growth allows for substantial upside potential in case things go well.
Among those stocks with indirect exposure, there are several ones that are reasonably to attractively priced and that offer an above-average dividend yield on top of that. These companies give investors the ability to benefit from future growth opportunities in the marijuana industry without taking on a lot of risk. 041b061a72