Can These 3 Pot Stocks to Watch Continue to Outperform the Market?
Since the end of 2019, marijuana stocks have been quite topsy turvy. The high market volatility of industry-leading pot stocks like Canopy Growth Corp. (NYSE:CGC) and Tilray Inc. (NASDAQ:TLRY), has been a benefit to some investors. On the other hand, investors that want a more stable portfolio might want to look at ancillary marijuana stocks rather than pure-play. When choosing a pot stock to watch, the first aspect to consider is what type of portfolio one wants. On one hand, long-term investors may want to look at marijuana stocks that show greater amounts of stability.
This includes as mentioned before, ancillary pot stocks, or other more stable areas of the cannabis industry. On the other hand, those who swing trade may want to look at pure play pot stocks. The entirety of the cannabis industry is known to be quite volatile. That means that investors should expect large fluctuations in their portfolios. With that in mind, picking a pot stock to watch is much easier than people think. It all comes down to knowing where to look and how to find value in the cannabis industry.
Marijuana Stocks to Watch: Curaleaf Holdings Inc.
Curaleaf Holdings Inc. (OTC:CURLF) is a U.S. based multi-state operator. CURLF stock has seen a large amount of critical appeal in the past few years as it has one of the broadest consumer bases in the industry. The company operates out of 23 states in the U.S. and is working to expand upon that every day. In its most recent second quarter, CURLF stock pushed 142% revenue growth and more than 180% in gross profit growth. Its profitability is one of the aspects of the company that separates it from most other marijuana stocks.
Many pot stocks have struggled to see an ounce of profitability due to the market and how capital intensive it can be to run a cannabis business. But, Curaleaf has continued to show potential in the face of market adversity over the past few years. In addition, its recent acquisition of the MSO Grassroots means that it has an even wider footprint than before. This should help it to continue climbing to the top of the cannabis industry. Although CURLF stock can be quite volatile, it does remain a pot stock to watch.
Marijuana Stocks to Watch: OrganiGram Holdings Inc.
OrganiGram Holdings Inc. (NASDAQ:OGI) is considered to be one of the midsized marijuana stocks to watch by market cap. Although it is not as large as other Canadian pure-play pot stocks, OGI stock has a lot to offer investors. The company recently released its third-quarter report which was less than stellar. With revenue down by a quarter, most investors are chalking this up to the effects of COVID on world markets.
After the report came out, many investors dropped their positions in OGI stock. But, the underlying business and its potential to become a major cannabis grower, means that there could be some forward momentum in the future. While OGI stock has hopefully seen the brunt of its bearish sentiment, many investors believe that it could be a value buy. With this, investors should continue to keep a close eye on OGI stock moving forward.
Marijuana Stocks to Watch: GW Pharmaceuticals Inc.
GW Pharmaceuticals Inc. (NASDAQ:GWPH) is one of the largest pharmaceutical pot stocks in the cannabis industry. Prior to its mid-September drop in price, GWPH stock had been up by around 70% year over year. Similar to OrganiGram, many investors are chalking this up to COVID-related market insecurity. The company is in the production of several leading cannabinoid-based pharmaceuticals. Its main drug down as Epidiolex treats rare forms of Epilepsy and other seizure disorders.
With FDA approval, GWPH stock has seen its price shoot up in the past few years. In addition, the majority of the company’s revenue is coming from sales of Epidiolex. Because sales of this drug have not dropped substantially, there is little to no backing behind the company’s most recent price drop. But, volatility is something that is always present in the cannabis industry. Last year, GWPH stock reported as much as $311 million in sales. This year, the company projects that it will sell even more. With that in mind, GWPH stock remains a leading pot stock to watch.
These three marijuana stocks to watch are only a few of a much larger industry. While there are a lot of options in the cannabis industry, only a handful have shown a great deal of potential. It is up to investors to find out all of the information they can about a given company before making a decision. With that in mind, we can only hope that the industry continues to see a great deal of growth moving forward.
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