With June comes a new month of potential for marijuana stocks. Although we have been in June for a week or so at this point, we have another three that could help to show some positive momentum for cannabis stocks. The cannabis industry has been working to fight off market volatility associated with the coronavirus, but so far it has done quite a good job. Many have stated that the potential for marijuana stocks resides in the long term rather than in the next few months. Although this may be true, there is still some potential upside during the short term time period.
Investors have been focused on several sub-sectors outside of just the pure-play pot stocks. While these sub-sectors are in no way a guarantee for seeing returns, they do offer investors a different value point to get into the industry. These sectors could be anything from MSO marijuana stocks to extraction service providers and more. Investors should do the research to see which area of the cannabis industry suits their investing style best. With this in mind, it all comes down to the amount of research one is willing to do. The internet has made it easier than ever to find out all one can about a given cannabis stock. Because of this, investors should make sure they have all the information they can available to them.
A Marijuana Stock That is Making Its Way Back on Top
Green Thumb Industries Inc. (GTBIF Stock Report) is one of the most promising marijuana stocks in the industry right now. During January, the company shot down by as much as 60% due to coronavirus related volatility. Although this was a shared sentiment amongst most cannabis stocks, Green Thumb was undoubtedly hit quite hard. Since that time, the company has shot back tremendously to the tune of around 150%. While this is partly a correction, it is mostly to do with the fact that the company has put out much better than expected first-quarter numbers.
In its most recent report, the company stated that it had revenue around of around $100 million. This represents a more than 35% jump from the quarter prior. In addition, the company was able to generate a positive EBITDA of around $20 million which is more than double the previous quarter as well. A lot of this is due to the shift in market demand that has taken place with COVID-19. Green Thumb continues to be poised to take advantage of the growing cannabis market. For this reason, it remains one of the leading marijuana stocks to watch.
The Biggest Marijuana Stock of Them All
Canopy Growth Corp. (CGC Stock Report) is a household name for anyone who watches cannabis stocks. The company has continued to make headlines in the past few months for its commitment to growing in the face of adversity. In its last quarter, the company reported quite a large amount of losses, missing expectations quite widely. It also reported an almost 15% loss in sales over its previous quarter. But, since that time, the company has managed to move back toward getting on top.
As the largest cannabis company in the industry, Canopy always has had a very unique position amongst other cannabis stocks. Many have stated that it will be able to benefit greatly from the increase in market demand from the coronavirus as well. Because of this, the hopes are that its future 4th quarter numbers will show some major upside potential. Until that time, investors should remain skeptical, and keep using the numbers that Canopy puts out to make educated decisions. But as a whole, it does remain a marijuana stock to watch moving forward.