Can These Two Pot Stocks to Watch Continue to Show Momentum?
The cannabis industry has seen some very solid momentum in the past few months. With the coronavirus causing the majority of instability in the industry, as things stabilize, we will see more stability amidst marijuana stocks. The difficult thing right now is that COVID-19 is very hard to predict. Because of that, finding the right pot stocks to watch can, at times be a challenging task. But have no fear because there are plenty of marijuana stocks to watch that offer a lot of intrinsic value. These companies have worked hard to either produce large quantities of cannabis or make new and groundbreaking products for sale in the industry.
Investors should always remember to look at the fundamentals before investing in any marijuana stock. This includes checking a company’s financials, as well as the news that they are putting out. The cannabis industry is notoriously speculative. Because of this, when a company comes out with news, that news can very quickly affect a pot stocks price either positively or adversely. With this in mind, it all comes down to finding a marijuana stock that fits ones investing style.
An Extraction Marijuana Stock to Watch
MediPharm Labs Inc. (MEDIF Stock Report) is one of the most popular extraction service providers in the cannabis industry. MEDIF stock has managed to grow substantially in the past year due partly to the legalization of derivatives by Health Canada. In what was appropriately titled Marijuana 2.0 in Canada, the nation decided to legalize the use and production of derivative products. This includes edibles, oils, tinctures, and more. With that, demand for derivatives has shot up dramatically in only a short period of time. With this demand increase, MEDIF stock has seen a great deal of momentum in the past few months.
In addition, the growing fears around how COVID affects the respiratory system means that more people have been turning to edibles and cannabis-infused beverages. Analysts believe that this demand will only continue to shoot up as we move into the future. Because of that, some studies have shown that MEDIF stock could see almost 85% in sales growth in the next year or so. With massive growth occurring around the cannabis industry, MediPharm Labs remains a leading pot stock to watch.
A Very Large U.S. MSO Pot Stock
Cresco Labs Inc. (CRLBF Stock Report) is one of the largest MSOs in the U.S. CRLBF stock has continued to show a great deal of upward momentum in the past few months. In addition to this, CRLBF stock has benefited greatly from the company’s acquisition of Origin House. With this acquisition, Cresco Labs now has access to more than 550 dispensaries around California. This is a very big deal as California is widely regarded as the largest cannabis industry in the world.
With this in mind, analysts have stated that CRLBF stock could benefit from an 80% growth in the company’s sales by next year. A lot of this will depend on what type of distribution the company can have. But, with access to so many dispensaries, it doesn’t seem like there will be an issue on that front. Because of its large potential and future momentum, Cresco Labs continues to be considered a marijuana stock to watch.