Big-name marijuana stocks have seen a lot of volatility in the past few months. Although most of this can be blamed on the coronavirus, the cannabis industry has its own issues that need solving as well. Currently, issues such as the black market, vaping issues, large balance sheet losses, and more, are all having a large effect on the cannabis industry. But, as we move forward it does look like things are beginning to find a stabilization point. After the excitement ended post-Canadian-legalization, we saw a large downtrend for a substantial amount of time. But, the industry has been able to grow at a fast rate.
Depending on where you look, studies are showing that within the next five to ten years, we could see the cannabis industry value hit as high as $60-70 billion. But, investor interest has yet to come close to a peak. As we continue to watch values shoot up, it will be interesting to see what changes go into effect in the near future. Until that time, it’s best to try and locate value where it can be found. These two pot stocks are some of the largest in the industry. Because of this, they often are used as the benchmark for where the cannabis market may be headed. With that in mind, here’s a closer look at two of the largest cannabis stocks in the industry.
One The Largest Pot Stock In The Market
Canopy Growth Corp. (CGC Stock Report) has remained the largest marijuana stock in the industry for quite some time now. The company has continuously shown massive growth despite some major hiccups in the past few months. With its price being down by around 70% from its high, many investors have begun to lose interest. But, the company still has a very significant investment from Constellation Brands which happened a few years back.
Because of this, there is a big push for profitability and an even larger push to try and get the company producing new and groundbreaking products. CEO of Constellation Brands, Bill Newlands stated that “Canopy is best positioned to win in the emerging cannabis space and we are confident in the strategic direction of the company under David Klein and his team.” Although the road bumps are not expected to end any time soon, Canopy Growth still represents what the peak of the cannabis industry can look like.
A Marijuana Stock To Watch During Hard Times
Cronos Group Inc. (CRON Stock Report) is the other large marijuana stock that many talk about. Similar to Canopy, shares of Cronos have fallen by around 75% since its high last year. As a major vertically integrated producer of cannabis and cannabis products, the company has still been working to offset its large losses in recent months. With this, it’s revenue came in at around $8.4 million with a net income of around $75 million. That comes out to around $0.20 per share.
Analysts were expecting much lower which leads many to believe that Cronos could be on the right track in the near future. But, much of its current operating income comes from the multi-billion investment put into there company by Altria (MO Stock Report). As Cronos moves forward, investors should continue to analyze its balance sheet to see what direction it is headed in. For now, however, it does look like an interesting marijuana stock to watch.
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