Will 2020 Be The Year These Pot Stocks Takeoff?
The cannabis industry has shown a great deal of promise so far in 2020. While we are already in September, it is difficult to predict where the cannabis industry could go by the end of the year. This is due to Covid and how unpredictable it has been for the stock market. The end of 2020 has one factor going for it that could change the way marijuana stocks move in the market. That factor is the presidential election in the U.S. No matter what happens, the result of the election will be big news for pot stocks.
This includes U.S. marijuana stocks like Innovative Industrial Properties Inc. (NYSE:IIPR) and also Canadian pot stocks like Aurora Cannabis Inc. (NYSE:ACB). In addition to electing a president, several states will decide whether or not to legalize cannabis this election season. Again, this could completely change the way that the cannabis industry functions. As far as statewide legalization goes, MSOs like Harvest Health & Recreation (OTC:HRVSF) stand to win or lose the most. With that in mind, here are two marijuana stocks that have already shown growth in 2020.
Marijuana Stock to Watch: GW Pharmaceuticals
GW Pharmaceuticals Inc. (NASDAQ:GWPH) is one of the largest pharmaceutical pot stocks in the cannabis industry. So far in 2020, several leading money management companies have added shares off GWPH stock to their holdings. This includes management firms like Point72 Asset Management and BlackRock. The company was made famous a few years ago after producing the drug known as Epidiolex. Epidiolex, which is used to treat rare forms of epilepsy, has seen massive critical appeal from those who need it. In its latest quarter, GWPH stock posted around $117 million in net sales.
Investors believe that by the end of the year, GWPH stock could report almost $500 million in sales. In addition, the company is working to get Epidiolex licensed in several countries abroad. Although GWPH stock has posted losses in the past two quarters, these losses are decreasing substantially. Because of this, analysts have stated that GWPH stock could potentially post profits in the 2021 fiscal year. With that in mind, GW Pharmaceuticals remains an interesting alternative marijuana stock to watch.
Marijuana Stock to Watch: AbbVie Inc.
AbbVie Inc. (NYSE:ABBV) was once a major producer of cannabis infused pharmaceuticals. Last year, however, its main drug known as Marinol was sold to another company. But, ABBV stock is still considered a pharmaceutical pot stock due to its 59 medical cannabis patents. Investors who have considered ABBV stock have done so due to its placement in the cannabis industry. Because it is neither a pure play pot stock nor a purely pharmaceutical pot stock, AbbVie is able to avoid a lot of the volatility that comes with both of those.
Instead, many believe that ABBV stock is a solid long term play in the cannabis industry. With its 59 medical cannabis patents, AbbVie has the potential to become one of the major pharmaceutical companies working out of the cannabis industry. With ABBV stock trading at around $90 as of mid-September, it is by no means a cheaper marijuana stock. But, since mid-March, ABBV stock has grown by as much as 40%. Because of this, investors should consider AbbVie when searching for potential hidden value in the cannabis industry.
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