In the cannabis industry, there are the winners and there are the losers. At times it can be difficult to figure out which marijuana stocks are which. But, in the past few weeks we have witnessed mostly big gains from the top down. This in no way means that we will continue to see consistent gains amongst the leading marijuana stocks, but it does mean that the future of some cannabis stocks may be exciting. Usually, investors tend to focus on the largest pot stocks in the industry before looking at the smaller ones. And this strategy works for some, but just because a cannabis company is large, does not mean it is successful. The two pot stocks mentioned below both offer different value points for different investors, and that is what is worth figuring out.
By assessing the details and financial, an investor can make a much more educated decision as to what they want to do. With this year showing an extreme amount of volatility for marijuana stocks, it seems as though our expectations should remain limited. But moving forward, there is a lot of exciting news on the way for the cannabis industry. This news should be taken with a grain of salt, but the reality is that we have yet to see even a small amount of the projected growth for the cannabis industry. Because of that, these two pot stocks are definitely worth watching.
One of the Largest Marijuana Stocks in the Industry
Cronos Group Inc. (CRON Stock Report) is without a doubt one of the largest marijuana stocks in the industry. The company received a large infusion of around $1.8 billion in cash from Altria (MO Stock Report) a few years ago, giving it quite a lot of forward momentum. And although that cash infusion was appreciated, the company has not managed to show any massive returns until the past few weeks. But, Cronos Group does have an advantageous position in terms of its cash standing as opposed to almost every other marijuana stock.
In addition, the company has made large moves into the hemp market via the acquisition of Redwood last year. The company has seen some bad trends in the past few months due to the coronavirus, but as stated before it is seeing some solid forward momentum in recent trading days. With its sheer size position, the company is quite ahead of the game when compared to other marijuana stocks. Although the company does have its issues, it remains one of the most prominent cannabis stocks to watch right now.
A Downtrodden Marijuana Stock With a Recent Uptick in Value
Aurora Cannabis Inc. (ACB Stock Report) has had quite a lot of trouble over the past few years. The company managed to shed a large portion of its value in only a few short months during the tough times of the 2019 cannabis industry. But recently, it has surpassed expectations, pushing better results than most other previous quarters. In its recent third-quarter results, the company massively beat market expectations. Because of this, many have begun to focus on Aurora as a potential future winner.
The company has seen a large amount of growth in its sales, due mostly to the coronavirus and the large stay-at-home orders put in place around the world. In addition, the company stands to be one of the leaders in the European cannabis market, and specifically in Germany. With these large potential growth prospects, Aurora does look to have a lot going for it in the next few years. For now however, it does look like the company remains quite volatile compared to most other cannabis stocks.