Marijuana stocks have been in quite a volatile mode for some time now. In only a few short months, we have witnessed the leading pot stocks both climb and fall by substantial numbers. While a lot of this has to do with the effects of the coronavirus, the cannabis market itself definitely should take part of the blame. The coronavirus has caused a very interesting situation in the cannabis industry. Investors have begun to invest off of fear rather than trading on a company’s intrinsic value. This means that there is both the potential to make quite a lot of money, but also lose a lot of money at the same time.
Of course, this is the risk with any investment, but the current level of volatility has made this very much the case with the leading cannabis stocks. It is difficult to tell whether or not we will see a huge rebound in the very near future. A lot of this depends on how quickly we can see a shift in the pandemic and its severity. This will be the largest signal of change in the near future. Besides this, it will remain quite up in the air as to what happens in the next few weeks. But, many investors choose to believe in the long term as it holds the most amount of potential for cannabis stocks. With that in mind, these are two leading marijuana stocks to watch.
One of the Most Well Known Alternative Marijuana Stocks
Innovative Industrial Properties Inc. (IIPR Stock Report) is widely regarded as being one of the most interesting marijuana stocks to watch. The company is a REIT that offers a lot of benefits to both conservative and more frivolous investors alike. During its most recent report, the company missed earnings by only a small amount. This resulted in a solid loss during the trading day. But, many believe that this could be the time to buy the company at a very cheap price.
Although it did not make expectations from Wall Street, the company did almost quadruple its year over year revenue, posting earnings of around 120% per share. The real potential for IIPR comes in the long term. If the company is able to continue its current growth amount, it remains one of the strongest REITs in the cannabis industry. In addition, IIPR pays out a dividend which yields around 5%. This is quite a healthy amount and should give another solid reason to think about IIPR in the long and short term.
Marijuana Stock To Watch: A Large Multi-State Operator
Green Thumb Industries Inc. (GTBIF Stock Report) has been talked about quite widely around the cannabis industry. The company is one of the largest MSOs or multi-state operators in the entire U.S. market. In its year-over-year numbers, the company saw its revenue shoot up by around 300%. This is almost unheard of outside of the MSO area of the cannabis industry, which is partly why the company’s received so much attention. What makes it so interesting is its business model.
While many MSOs choose to broaden their locations around the U.S., Green Thumb has chosen to focus on specific industries such as Illinois. With these high growth states as its backbone for growth, the long term could be very promising for Green Thumb. But, what is worth mentioning is that the company has yet to turn to profitability. This is something that it hopes to solve in the very near future as MSOs are easier than other cannabis companies to make profitable. With a solid business model on hand, the company remains one of the more interesting cannabis stocks to watch.