In the cannabis industry, the focus of investors often tends to be on the largest marijuana stocks by market cap. Although this can be a great way to start creating a list of cannabis stocks to watch, it often denies a large amount of the potential with the mid and small-cap marijuana stocks. Because of this, it’s best to take a look at both ends of the spectrum with a mindset that does not have a prejudice toward size. The real prejudice should be in relation to the numbers that a marijuana stock is putting out. This includes everything from scaling the amount to profitability and its future plans. These concepts all help to define where a pot stock could go in the near future.
And, with a bulk of the potential of the cannabis market happening in the next few years, it seems as though it would be asinine to make assumptions in the short term. For now, however, focusing on the results that a company is producing can be the best way to find a cannabis stock. Of course, the largest marijuana stocks are making the biggest waves, but if you watch the cannabis industry, you know that there is usually a trickle-down effect. With that in mind, these are two leading cannabis stocks to consider.
The Big Marijuana Stock Player
Cronos Group Inc. (CRON Stock Report) is a household name for anyone who invests in the cannabis industry. The company became the first NASDAQ listed marijuana stocks back in February of 2018. Since that time, a lot has changed both for the better and for the not so good. On one hand, Cronos has had some major issues with over-production and less than expected demand. Although this is a sentiment shared by a large number of leading cannabis stocks, due to Cronos’ size, it was hit quite hard. But, in the past few months, the company has begun to adapt to the needs of the cannabis industry.
The company has done this by laying off workers, decreasing grow size, and recalculating its future strategies. Since mid-May, Cronos has shot up in value by as much as 35%. This is quite large considering how long a downtrend existed within the companies share price. As one of the top three largest marijuana stocks in the industry, the company continues to set a top-down example for the rest of the cannabis stocks. And while it may have an interesting future ahead, its sheer size continues to make Cronos Group a leading marijuana stock to watch.
A Pharmaceutical Marijuana Stock to Watch
GW Pharmaceuticals Inc. (GWPH Stock Report) is in no way a small marijuana stock, but the company does not have the same pull in the industry as the larger pure-play pot stocks. Founded back in the late 90s, the company has been able to grow massively over the course of the past two decades. In the past year, the company has dropped in value by around 50% following some issues with legislation and the market overall. But, since mid-March, GW has shot up by more than 75% in value. While this type of gain is not unheard of, it definitely should get some notoriety.
The company’s claim to fame is a drug known as Epidiolex, which has seen widespread success for its ability to treat rare forms of epilepsy. In addition to one or two other drugs, Epidiolex was one of the first pharmaceuticals containing cannabis to be approved by the FDA. Last year, the drug alone brought almost $300 million to the company which astounded investors. Many believe that this amount of revenue should only increase given the demand for the drug and the consistency of that demand. Because of this and the massive commitment to research and development, GW Pharmaceuticals remains one of the most prominent marijuana stocks to watch.