Can These Pot Stocks to Watch See Bullish Interest?
In the past six months, we have seen a great deal of bullish interest in marijuana stocks. One of the main factors behind this is the effect that the Covid pandemic has had on the cannabis industry. The marijuana stocks affected by this include some of the largest in the industry. For example, Canopy Growth Corp. (CGC Stock Report), Green Thumb Industries Inc. (GTBIF Stock Report) and HEXO Corp. (HEXO Stock Report), all saw their prices rise respectively in the past few months. If we look at the trends, we see that January to March was quite a dark time for pot stocks.
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But, as March came and went, we saw marijuana stocks begin to pick up steam once again. Since the middle of March, many leading pot stocks to watch have climbed in the high double digit percentages. While this sentiment may be short term, it is encouraging for pot stock investors to look at. In the next few months, there are several factors that will have a big role in the future of the cannabis industry. This includes the U.S. election in November and what laws pass during it. With that in mind, here are two pot stocks that could see potential growth in the next few years.
A Large Canadian Cannabis Producing Pot Stock
Aurora Cannabis Inc. (ACB Stock Report) is one of the largest marijuana stocks in the industry by market cap. While the company is seeing a lot of bullish interest, it has not been an easy or straightforward path for ACB stock. After several large acquisitions and some sizable goodwill losses, the company reported several losing quarters in a row. But, since then, ACB stock has been working to get back on track. Michelle Lefler, a spokesperson for Aurora Cannabis stated that “we continue to see growth potential in this important market and will maintain active relationships with key distribution partners to enhance availability of Aurora’s portfolio of leading, high-quality medical cannabis.” 
In the past few months, the company has been working to improve its balance sheet. It has done this through offloading unnecessary investments such as its almost 12% stake in Cann Group. In combination, Aurora has laid off quite a large number of employees in the past few months, leading to a small uptick in its balance sheet. While this change is not something that can happen overnight, it is encouraging for investors. Big shifts like these are often catalysts for future growth. Whether or not Aurora Cannabis can get its balance sheet together remains unknown. But in the long term, ACB stock may look like a pot stock to watch. For now however, investors should be skeptical in the short term performance of ACB stock.
Another Leader in the Cannabis Industry
Cronos Group Inc. (CRON Stock Report) is another one of the larger Canadian marijuana stocks. The company has been working to build a bigger presence around the world in five continents. The company has also stated that it is working on advancing cannabis research and technology. Investors on the other hand, may have trouble seeing major positives with CRON stock due to its past performance. Because it is one of the largest marijuana stocks by market cap, CRON stock has been subject to a great deal of volatility in the past. Despite this, we have seen renewed bullish interest in the company since the beginning of the month.
From October 1st to the 14th, CRON stock has shot up by around 13%. While this may not seem like a lot, it is quite substantial considering heavy losses taken by the company a few months ago. And while the short term may be a difficult place for Cronos Group, many believe that the company may have potential in the long term. This is due to its proposed expansion around the world. Recently, the company announced that its new brand PEACE NATURALS will be in many pharmacies throughout Israel. This is just one example of the company working to expand its reach in countries abroad. This new brand is a part of Cronos Israel, which has become an increasingly valuable asset to the company. With this in mind, investors should continue to watch CRON stock in the long term.
Will These Marijuana Stocks Succeed in the Long Term?
The short answer is that it is difficult to say. There are a lot of factors that go into a marijuana stock seeing success. And the largest factor behind it is what the market is doing wholly. The upcoming election in the U.S. will have a big role in the trajectory of the future of the cannabis industry. Until that time, we may continue to see quite a bit of volatility amongst major and minor pot stocks. With that in mind, all we can do is continue to hope for the best.
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