Can These Pot Stocks Make Big Headway Next Year?
Marijuana stocks have made big headway already in 2020. After hitting lows in March, many leading pot stocks like Canopy Growth Corp. (CGC Stock Report) and Aphria Inc. (APHA Stock Report) have seen large double-digit percentage gains. As we enter October, it looks like there could be more potential waiting for the cannabis industry. In the U.S., the upcoming election will cause a big stir amongst marijuana stocks. Several pieces of legislation in combination with a new President would help to completely shift the future of the cannabis industry.
Major pot stocks like Innovative Industrial Properties Inc. (IIPR Stock Report), Green Thumb Industries Inc. (GTBIF Stock Report) and Scotts Miracle-Gro Inc. (SMG Stock Report) are counting on new laws to go into place in order to see as much success as they can. One of the major issues that we have in the current cannabis industry is that companies do not have access to proper banking. This means several things. For one, marijuana companies cannot gain access to banking services such as credit or loans.
This makes it incredibly difficult for them to grow in the long term. In addition, companies have to work entirely in cash, creating a dangerous situation for both the company and the employees. With this, we see that there needs to be some major changes in order for the cannabis industry to run smoothly. The hopes are that this election season, some factors will shift in the favor of the cannabis industry. With that in mind, here are two pot stocks to watch for potential 2021 profitability.
A Leading Pharmaceutical Pot Stock to Watch
GW Pharmaceuticals Inc. (GWPH Stock Report) is one of the leading pharmaceutical companies working out of the cannabis industry. The company has worked tirelessly to produce and research its CBD based drug known as Epidiolex. This drug, which is used to treat rare forms of Epilepsy, has been hailed as a miracle drug for those who need it. GWPH stock has primarily grown for its role in the U.S. pharmaceutical industry. But, the company has been working to move into abroad markets such as Europe.
If it is able to get approval from the governments abroad, it would give GWPH stock an advantageous market position. The company has stated that by 2021, it should see more than a 50% increase in sales of Epidiolex. With this, Wall Street has projected roughly $2 per full year in expected earnings per share. Of course, a lot of this depends on whether or not GWPH can keep up with its current momentum. If it is able to, it could become the largest supplier of cannabinoid based pharmaceuticals in the entire cannabis industry. With this, there is a lot to look forward to for the future of GWPH stock.
Another Pot Stock Benefitting From CBD Sales
Charlotte’s Web Holdings Inc. (CWBHF Stock Report) is a marijuana stock that might raise some questions being on this list. This year, we have seen shares of CWBHF stock shoot down by almost 90%. A lot of this has been caused by the FDA’s issues with CBD and new regulations. In the past two months, however, CWBHF stock has been able to come back to some extent. There is still a great deal of uncertainty surrounding Charlotte’s Web. The FDA has stated that it does not want to allow the use of CBD in topicals or oils as well as food and beverages.
This has put Charlotte’s Web in a difficult situation as the company relies on sales of these products to see revenue. But, it seems as though there could be a changing of tides in the near future as the importance of CBD continues to be illustrated. Wall Street has stated that next year, we may see Charlotte’s Web post around $0.04 in profit per share. This could accompany a potential 50% sales growth for the 2021 year. If all things go according to plan, CWBHF stock may continue to look more attractive as time goes on. With this in mind, Charlotte’s Web remains one of the leading pot stocks to watch.
What These Pot Stocks Say About The Cannabis Industry
The cannabis industry is changing very quickly. The hopes are that we can continue to see this explosive growth as we move into the future. These two marijuana stocks to watch only represent a small portion of a much larger industry. But, they also present an interesting opportunity for investors who are willing to do their own research. With marijuana stocks, it all comes down to how much time an individual is willing to put in. If one is eager to find out information about a given company, they may be able to see more profits than someone who isn’t. With that in mind, it seems as though the cannabis industry can only go up from here.