The Best Marijuana Stocks That Promise Huge Returns
It’s estimated that the marijuana industry can be worth as much as $77 billion by 2022. It’s currently hovering a bit above $20 billion.
As wheels of legalization continue their march forward, it’s worth getting in on the action now before it’s too late.
But which marijuana stocks are going to be winners and which ones will go up in smoke? Continue reading and we’ll walk you through the best marijuana stocks that should deliver plenty of gains over the coming years.
Aurora Cannabis (NYSE: ACB) is one of the higher-profile stocks out there. There are a good amount of people who are shorting the stock due to its poor performance of the last several months.
However, as we know all too well in stocks, past performance doesn’t indicate future results. In fact, Aurora Cannabis is one of the most popular stocks on the stock-trading application – Robinhood.
This indicates just how popular marijuana-based businesses are with Millenials and could mean there’s some major growth potential in store.
With quarterly losses of CA$2 million, Aurora isn’t profitable at the moment. But many burgeoning marijuana businesses today aren’t.
From Q3 2019 to Q4, Aurora’s revenue grew by 52%. This indicates good things to come for 2020.
Tilray (NASDAQ: TLRY) has been serving customers overseas which makes it one of the best medical marijuana shops around. It recently beat revenue expectations by earning $49.5 million.
Tilray’s stock is fairly cheap at the moment, mainly due to an oversupply of marijuana in the market.
A big reason to go long on Tilray is thanks to its recent partnership with Anheuser-Busch, the owner of the Budweiser brand. Tilray’s new parent company plans to make non-alcoholic CBD-infused drinks, which should help boost Tilray’s sales.
Scotts Miracle-Gro (NYSE: SMG) sells consumer lawn and pest products. Although they might not be the first thing that comes to mind when you think marijuana stocks, the company has certainly benefited from their investments in Hawthorne Gardening Company.
Hawthorne develops hydroponic systems that are used to help grow large volumes of marijuana.
Over the past year, SMG’s stock has spiked 39%. The company also hit over $1 billion in revenue for the first time this year.
Thanks to the fact that Scotts Miracle-Gro is not an actual marijuana company but rather one that’s simply invested in marijuana products, it can better withstand market troubles.
And when the marijuana market expands, so will Scotts.
The Best Marijuana Stocks for You
There are dozens of marijuana stocks and ETFs out there who are all vying for your attention. Since legal marijuana is a nascent industry, it’s a bit of a wild west situation right now.
That’s why it’s so important to realize that the best marijuana stocks are going to be the ones with good balance sheets and clear potential for growth and market share.
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