In the cannabis industry, there are behemoths and smaller marijuana stocks. While both have their own value points, investors tend to focus on the bigger pot stocks first. Without a doubt, it is a tough time to invest in marijuana stocks. But, for anyone who has been watching the industry in the past few months, they know that it has gotten much more stable. This stability is defined by seeing more consistent gains, and less large jumps in prices. And while this may be true for the moment, it is difficult to predict just how long this stability will last.
For now however, it seems like investors are very much focused on the next few years in the industry rather than in the short term. This focus is helping to push companies up in value in all size ranges of the cannabis industry. But when it comes to the largest marijuana stocks to watch, there are a few things to look for to decide which might be a better investment than others. There is no sure-fire way of picking a marijuana stock to watch, but there are some factors we as investors can look out for.
A Leading Marijuana Stock Makes a Comeback
Canopy Growth Corp. (CGC Stock Report) is one of the most popular marijuana stocks in the industry. If you invest in cannabis stocks, the odds are pretty high that you know about Canopy. The company has been working to come back from months of losses following a less than stellar 2019 year. In a press release put out recently, the company stated that a large investor, Constellation Brands (STZ Stock Report) will exercise around 19 million warrants to buy shares of Canopy. CEO, Bill Newlands stated that “Canopy is best positioned to win in the emerging cannabis space.”
And although that statement may seem overstated, the company does have a unique position in the cannabis industry. As the largest company by far, it stands to potentially gain the most from future growth in the market. Because of this, many believe that the company will continue to be an industry leader moving into the next few years. Canopy definitely has some issues to contend with, but these do seem small compared to the future it could have in store. Because of this, the company continues to be a marijuana stock to watch.
An Emerging Marijuana Stock With a Bright Future
Green Thumb Industries Inc. (GTBIF Stock Report) is another big name in the cannabis industry, but it is nowhere near as large as Canopy. The company recently posted first-quarter revenue totaling just over $100 million. This number represents an almost 270% increase year over year and almost 40% over the previous quarter. The company has managed to grow its revenue substantially in only a short period of time which is one of the main reasons so many investors are attracted to it. And, Green Thumb seems like it is just getting started.
The company has been working to open a series of stores in the U.S. where cannabis is legal. Currently, it has as many as 44 locations around the country. But, what’s really interesting is that the company has licenses to open more than 50 other stores around the nation. This is a massive amount of growth potential that should not be ignored. And although its size may not be the same as some of the largest marijuana stocks to watch, the company continues to show impressive numbers and results overall.