2 Marijuana Stocks To Watch As the Second Half of the Year Approaches
While we quickly traverse the 2020 year, there are some definite marijuana stocks to watch. Although the industry has been quite tumultuous, cannabis stocks seem to be doing quite well comparatively. A lot of this is based on the idea that the cannabis industry will grow substantially in the next decade. Many investors have hedged their pot stock bets on this fact. Just how much the industry will grow remains to be seen. But, some analysts have put it anywhere from $40 to $100 billion in value over the next 10 years.
With that in mind, it’s worth taking a deep look into the cannabis industry to see which pot stocks are worth watching. When searching, investors should make sure that they know a company’s long term game plan. As stated before, with so much potential in the long term, investors should keep this time frame in mind. In addition, investors should pay attention to what a marijuana stock is doing in the present day. This means taking a close look at a company’s financials as well as future goals. With that in mind, these are two marijuana stocks to watch for the near and distant future.
A Large U.S. MSO Marijuana Stock With a Big Financial Backer
Acreage Holdings Inc. (ACRGF Stock Report) is a U.S. based MSO pot stock to watch. Last year, marijuana stock giant Canopy Growth Corp. (CGC Stock Report) invested around $3.4 billion into ACRGF stock in a buyout. But, this buyout was predicated upon the U.S. changing its federal laws that go against cannabis. Since then, however, that deal has shifted which could help ACRGF stock in the near future. The new deal appears to be an upfront $37.5 million or so to help with current financial needs. Later on, the company will have access to as much as $100 million in loans as it continues to expand.
While many cannabis stocks expand rapidly, access to capital can often be limited. It seems as though ACRGF stock is poised to take advantage of this capital, and potentially push some solid future gains. Analysts have put a price target for ACRGF stock of around $3 which is not far from where it currently stands. But, a lot of this remains on Acreage’s shoulders. Whether or not the company can make substantial headway in terms of growth remains to be seen. For now, it does look like a leading pot stock to watch.
An Ancillary Marijuana Stock With Solid Potential
GrowGeneration Corp. (GRWG Stock Report) is not a well-known marijuana stock amidst the cannabis industry. But, this could be related to the fact that GRWG stock is not really a pot stock in the traditional sense. Rather, the company provides gardening solutions for those who wish to grow cannabis using hydroponic or organic methods. In the first half of the year, GRWG stock reported an increase of around 70%. This is quite substantial and shows just how much potential the company has for growth. In the most recent GRWG stock report, the company posted year over year gains of around 150%.
In addition, it posted revenue totaling around $33 million for the first quarter alone. With its stores in as many as 10 states around the country, GrowGeneration has remained a longstanding pot stock to watch. But, with competitors like Scotts Miracle-Gro Inc. (NYSE:SMG), it will need to stay vigilant and ahead of the game. For now, it looks like there is plenty of room to grow alongside one another. Estimates have shown that the U.S. hydroponics market could reach $30 billion in value within the next five years. With that in mind, GrowGeneration remains a leading pot stock to watch.