Investing In The Best Cannabis Stocks In August 2021
Are you looking for the best ways to invest in top marijuana stocks for the long term? For the most part, the best cannabis stocks to buy have been showing significant volatility and market declines. In the first quarter of 2021, the cannabis sector rallied until February 10th then began to decline to current levels. For many investors, this pullback could be seen as an opportunity to establish positions in pot stocks at lower levels.
One area that has performed better than vertically integrated cannabis stocks is ancillary marijuana stocks. Ancillary cannabis companies are those companies that support the cannabis industry without touching the actual plant. Since the advent of the pandemic, these cannabis companies have grown rapidly and performed well for investors. One of these top ancillary marijuana stocks continues to defy the rest of the cannabis sector mounting gains while the rest of the top pot stocks decline in the market.
The other recently reported strong earnings but the stock price saw a significant decline in August. Ultimately these cannabis companies could continue to perform at a high level and deliver for investors. For long-term investing ancillary marijuana stocks have shown more stability in the market. This is important for long-term investing and provides a certain comfort zone for the investor. In addition, some of these cannabis stocks also provide a dividend to shareholders. Currently, dividends are rare for cannabis stocks and complement long-term portfolios well.
Finding The Best Pot Stock For Your Portfolio Right Now
For investors finding the best marijuana stocks requires due diligence on the company. Researching a company’s finances and watching how the stock performs in the market can help you make the best investments for your portfolio. In August many top cannabis stocks are trading near their lowest values in 2021. As things progress in the form of federal cannabis reform the cannabis sector could see some upward momentum. As it stands this could be a good time to make a list of top marijuana stocks to close out August.
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Top Marijuana Stocks To Watch For Long Term Investing
- Innovative Industrial Properties, Inc. (NYSE: IIPR)
- The Scotts Miracle-Gro Company (NYSE: SMG)
Innovative Industrial Properties, Inc.
Innovative Industrial Properties, Inc. is a real estate investment trust or REIT with a focus on the US-licensed cannabis market. Currently, the company has a total of approximately 6.8 million rentable square feet and 2.4 million square feet under development. As it stands, these properties are 100% leased with a weighted average remaining lease term of about 16.7 years. At the present time, the company owns 74 properties across 18 states. IIP continues to close acquisitions including properties in Pennsylvania and Massachusetts expanding its lease portfolio significantly in 2021. After the purchase, IIP will enter a long-term triple net lease with the cannabis company using the property. The company invested an estimated $1.3 billion across its portfolio and has committed another $385.3 million for the completion of construction and tenant improvements at IIP properties.
In August, IIP reported its second-quarter 2021 financials with performance-driven growth of 101% in total revenue year over year. Specifically, the company generated total revenue of $48.9 million. IIP paid its second-quarter 2021 dividend of $1.40 per share on July 15th a 32% increase from the year prior. This also represents an increase of 6% over the first quarter dividend. IIP has 21% debt to total gross assets with about $2.1 billion in total gross assets. In general, the company has generated total revenues of about $91.8 million for the first six months of 2021.
IIPR Stock Performance
IIPR stock closed on August 20th at $233.88 up 12.45% in the last month. The stock has a 52-week price range of $108.50-$236.92 and has increased 27.71% year to date. According to analysts at CNN Business IIPR stock has a 12-month median price target of $249.00 per share. In essence, this would represent an increase of 6.35% from its last trading price. In 2021 IIPR could be a top marijuana stock for your list for long-term investing.
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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. In addition, 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 August the company announced its 3rd quarter financials and reaffirmed sales and earnings guidance for fiscal 2021.
Specifically, the company reported company-wide Q3 sales up 8% to $1.61 billion driven by Hawthorne‘s growth of 48%. In detail, Hawthorne sales increased to $421.9 million compared to $285.7 million. US consumer sales for Scott’s declined by4% in the third quarter but remained 19% higher year to date. Scott’s saw company-wide sales increase to $4.19 billion up 29% for the first 9 months of fiscal 2021. In the third quarter, Scott’s acquired Hydrologic Purification Systems a California-based accessories and provider of water filtration and purification products in the cannabis market.
SMG Stock Performance
SMG stock closed on August 20th at $157.38 down 13.24% in the last month. The stock has a 52-week price range of $143.08-$254.34 and is down 20.97% year to date. According to analysts at Tip Ranks SMG stock has a 12-month average price target of $231.67 per share. Currently, this would represent an upside of 47.20% from its last trading price of $157.38. With this in mind, SMG stock could be one of the best cannabis stocks to buy for a long-term investment right now.
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