Will These Pot Stocks to Watch Continue to Shock Investors?
In the past few months, we have seen marijuana stocks climb in value in substantial numbers. At the top, pot stocks like Innovative Industrial Properties Inc. (IIPR Stock Report), Curaleaf Holdings Inc. (CURLF Stock Report), and Acreage Holdings Inc. (ACRGF Stock Report), have climbed in the high double-digit percentage points. This occurred after COVID quickly wreaked havoc on market prices earlier in the year. As we sit about six months out from then, it seems as though there are some new pot stocks to watch.
These companies have managed to climb to the top whether because of their business model or the products that they produce. When searching for a marijuana stock to watch, it is important to see where the company sits in the larger cannabis industry. Some companies are working their way up, while others are attempting to stay at the top. It truly comes down to how much effort the individual investor is willing to put in. This includes using the tools we have available to read up on a companies financials and fundamentals.
With this information in mind, investors can begin to create a watchlist of which pot stocks are worth watching and which are not. As usual, investors should also make sure that they are staying up to date with what is going on in the industry. In this way, there will be no surprises when it comes to price action. With this in mind, let’s take a look at two top marijuana stocks to keep an eye on.
A Leading ESP Pot Stock to Watch
Valens Company Inc. (VLNCF Stock Report) is one of the leading Canadian non-pure play pot stocks. The company works as an ESP or extraction service provider. This means that it produces extracted products on a contracted basis. Because of this, the company has been able to maintain consistency in its profits as well as in its long term plans. Wall Street has stated it expects the company to post around $0.05 in full-year EPS by the end of 2021. But, until then the company has some issues to solve on the Canadian home front.
This year, the country has seen a slow down in the production of cannabis and cannabis oils. Because of this, VLNCF stock has been adversely affected in the past few months. Despite this, Valens has historically been able to produce profits more easily because derivatives are a much higher margin product. With this, many believe that in the long term, VLNCF stock will be a shining example of an ESP pot stock to watch. In addition, since VLNCF stock is not a pure play company, it is great for those who are looking to diversify their portfolios. With that in mind, Valens remains a leading pot stock to watch.
A Pharmaceutical Pot Stock to Watch
AbbVie Inc. (ABBV Stock Report) is one of the leaders when it comes to cannabinoid-infused pharmaceuticals. In the past, the company created the drug Marinol, which is used to treat nausea across the board. Toward the end of 2019, the company sold the rights to the drug to Alkem Labs. Since that time, the company has been working to utilize the core components of Marinol to make new pharmaceuticals. This includes drugs that are being used to treat nausea in chemotherapy patients as well as in those suffering from other illnesses.
As of this year, ABBV stock is backed by the eighth largest pharmaceutical company in the world by market cap. At the current point in time, the company does not have any marijuana-infused pharmaceuticals in its pipeline. But, the company does have 59 patents for cannabis-related drugs in the U.S. alone. One of the major issues with this is that the federal government does not support the cannabis industry. This means that the approval timeline for the FDA to approve cannabis-infused pharmaceuticals is quite long. Regardless, it looks like ABBV stock could be another solid long term performer in the cannabis industry. Because of this, it remains one of the leading pot stocks to watch for the near and distant future.
What This Means for the Future of the Cannabis Industry
These two pot stocks are only a few of a much larger cannabis industry. In the industry, there are marijuana stocks for every type of investor. Whether retail or institutional, investors need to make sure that they know what their portfolio type is before choosing a pot stock to watch. With this information in mind, investors can better decide which pot stocks suit them. Although there are a lot of options, after doing the proper research, it should be easy to narrow it down to just a few pot stocks to watch.