Investing In Top Marijuana Stocks Long Term In 2021
Are you looking for the best marijuana stocks to buy long term? While the cannabis sector is known for extreme market volatility there are cannabis stocks that could provide great returns for the long-term investor. This week the cannabis sector is rallying because Republican-led legislation is signaling a bipartisan push for federal cannabis legalization and reform. Specifically, the States Reform Act is being circulated as a draft but is expected to be filed this month.
This has become a catalyst for pot stocks and has started an uptrend in the sector. For long-term investors, there are many ways to take advantage of the growth in the cannabis industry. One way is to invest in ancillary marijuana stocks. Ancillary cannabis companies are those companies that support the cannabis industry without touching the actual plant. These companies provide many different important elements such as real estate, growing supplies and equipment, and online logistics.
Specifically, in 2020 ancillary cannabis stocks saw significant gains in the market after the March 2020 market crash. In the US some of these companies have been delivering strong earnings in 2021. Some of these pot stocks also offer a dividend for long-term shareholders. In general, dividends are seldom seen in top cannabis stocks to buy making some ancillary pot stocks better candidates for the long hold.
Researching The Best Pot Stocks To Buy Right Now
Before investing in cannabis stocks, it’s important to do your own research on a company. Researching a company’s financials and studying how the stock performs in the market can help you achieve the best returns on your investments. One-way investors keep an eye on certain stocks is by creating a watchlist of the best cannabis stocks to invest in. This can help you narrow down the ones that fit your trading style and offer an opportunity for market gains.
[Read More] Top US Cannabis Stocks To Buy In November? 2 To Watch As Pot Stocks See Gains
Since Friday, November 5th we have seen many top marijuana stocks begin to regain some of the value lost since reaching new highs in February. As things continue to progress with cannabis reform, we could see some more upside from pot stocks. Let’s look at 2 top ancillary marijuana stocks to add to your watchlist for long-term investing.
Best Ancillary Marijuana Stocks To Watch Right Now
- Innovative Industrial Properties, Inc. (NYSE: IIPR)
- The Scotts Miracle-Gro Company (NYSE: SMG)
Innovative Industrial Properties, Inc.
One of the largest in the cannabis REIT market is Innovative Industrial Properties, Inc. a real estate investment trust with a focus on the US-licensed cannabis industry. At the present time, the company has a total of approximately 7.5 million rentable square feet and 2.7 million square feet under development. Specifically, these properties are 100% leased with a weighted average remaining lease term of about 16.7 years. In detail, the company owns 76 properties across 19 states. As of November 3rd, IIP has invested a total of $1.5 billion and committed another $391.7 million to reimburse tenants for property improvements. IIP continues to close acquisitions including properties in Pennsylvania and Massachusetts expanding its lease portfolio significantly in 2021. Also, the company expanded its long-term real estate partnership with Goodness Growth Holdings, Inc. (OTC: GDNSF) in New York.
On November 3rd IIP reported its third-quarter 2021 results with general total revenues of about $53.9 million for the quarter. This represents an increase of 57% year over year. In addition, recorded net income to common stockholders can in at about $29.8 million in Q3 or about $1.20 per diluted share. Also important, IIP paid a quarterly dividend of $1.50 per share on October 15th representing an increase of 28% year over year. Currently, the company has approximately $127.3 million in cash and about $554.4 million in short-term investments.
IIPR Stock Performance
IIPR stock closed on November 8th at $281.98 up 21.27% in the past month. Currently, the stock has a 52-week price range of 145.07-$282.86 and is up 53.98% year to date. According to analysts at CNN Business IIPR stock has a 12-month median price target of $290.00 per share. This would be an increase of 2.96% from its last trading price. For long-term investors IIPR stock could be one of the best ancillary cannabis stocks for long-term investing.
[Read More] 2 Known Marijuana Stocks That Deserve More Attention From Investors
The Scotts Miracle-Gro Company
Scotts Miracle-Gro is one of the world’s largest marketers of branded consumer lawn and gardening products and has a hand in the cannabis market. Specifically, the company’s wholly-owned subsidiary Hawthorne Gardening is a leading supplier of nutrients, lighting, and hydroponic equipment used in the process of growing cannabis. In September Scott’s named Cory Miller as Executive Vice President and Chief Financial Officer.
On November 3rd Scotts announced record full fiscal year 2021 results that saw Hawthorne sales increase 39% in fiscal 2021. In general Scotts US consumer segment sales increased 11% in fiscal 2021. The company saw full-year GAAP earnings of $9.03 per share and non-GAAP adjusted full-year EPS of $9.23. In addition, Scotts gave fiscal 2022 guidance with non-GAAP adjusted EPS of $8.50-$8.90 and announced the intention of share repurchase of $300 million in fiscal 2022.
SMG Stock Performance
SMG stock closed on November 8th at $167.00 up 13.63% in the past month. Currently, the stock has a 52-week price range of $139.20-$254.34 and is down 16.14% year to date. According to analysts at Tip Ranks SMG stock has a 12-month average price target of $208.25 per share. Based on this analysis this would represent an upside of 24.70% from its last trading price.
[Read More] Top Marijuana Stocks To Buy Right Now? 2 US Pot Stocks With Analysts Forecasting Triple-Digit Gains
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
