Can These Pot Stocks Continue to Show Momentum?
Marijuana stocks have seen a wild past year or so. In that time, many popular pot stocks to watch have fallen and then climbed back up. With so much volatility in the cannabis industry, how do we know which big-name pot stocks may be future winners? Well, we can start by identifying some common factors. When it comes to large pure-play pot stocks, the amount that a company can grow is important. But, this is nowhere near the most important thing to look out for.
Rather, we should also be paying attention to what a leading pot stock is doing to stay competitive in the larger market. It doesn’t matter how big a marijuana stock is, if it isn’t staying up to date, it won’t survive the long term. In addition to this, we should always be looking at a cannabis stock’s financials. With this information, we can then make an educated guess as to what type of momentum will occur in the next few months. With that in mind, here are two big-name marijuana stocks to watch for the second half of the year.
One of the Largest Marijuana Stocks in the Cannabis Industry
Aurora Cannabis Inc. (NYSE:ACB) is considered to be one of the largest marijuana stocks in the industry. After some tough months of trading ACB stock, the company has since seen its shares shoot back up. Back in May, ACB stock embarked on a 1 to 12 split. As a result of this, ACB stock shot up by as much as 240% in only a short period of time. Although ACB stock has been very volatile, investors seem to have regained confidence in the company.
Investors should note that a lot of the momentum that ACB stock has, is based on the overall momentum of the cannabis industry. Investors continue to believe that Aurora Cannabis is very well positioned to remain one of the largest marijuana stocks in the industry moving forward. With the demand increase resulting from Covid, it seems as though the next few quarters of earnings will be very telling for the company. For that reason, investors should continue to view it as a pot stock to watch.
A Marijuana Stock to Remain Skeptical About
Cronos Group Inc. (NASDAQ:CRON) is one of the largest pot stocks in the industry, but CRON stock has not remained a fan favorite. Currently, CRON stock is trading at around 100 times its earnings which makes it quite expensive. But, that valuation means that investors have high hopes for CRON stock in the next few years. After March when most marijuana stocks began to rise, CRON stock did too. In the present day, CRON stock sits around 70% up from where it was in mid-March.
Now, this still puts the company at around 50% down from its all-time highs, but it is a substantial gain regardless. Cronos Group still has a lot to do to regain investor’s trust. But, the company has managed to do that little by little. Although CRON stock still remains quite volatile, it is working to move past this. Investors may want to wait for the price to dip slightly below its current levels before considering it a pot stock to buy. But for now, it does remain a marijuana stock to watch.