Which is The Best Cannabis Stock To Buy In 2020?
The Start of November has seen green days in the market and profitable cannabis investors. As the cannabis stock sector gained market share in Mondays trading some investors took profits bringing marijuana stocks trading lower. For example, Innovative Industrial Inc. (IIPR Stock Report) opened Monday’s trading at $164.99 but ended the day almost 5% down at $145.06. Many analysts have given IIPR stock a target price of $175 which if possible, would mean the stock has more upside. Currently, in the cannabis sector, there are many companies that hold potential value.
As the stock market begins to settle after a substantial election rally, most leading cannabis stocks are trading lower in today’s action. At this time, Canadian marijuana stocks like Aurora Cannabis (ACB Stock Report) are pulling back after a great run election week. In general, this could be a good time to explore the cannabis sector for a company that can give investors exposure to the future of the cannabis industry. In reality, many analysts predict the industry could double in sales in the next 4-5 years. This would make it one of the fastest-growing sectors in the stock market today.
Marijuana Stock Volatility and Cannabis Legalization
With this in mind, there are a few things to understand about the nature of cannabis stocks. For one most leading marijuana stocks are historically volatile. It’s important to realize how they fluctuate in price so spend some time doing in-depth research into these cannabis companies before investing. As the U.S shows signs of ushering in new federal regulations these could be definitive times for cannabis industry growth. As it stands medical marijuana is currently legal in 35 states and could boost tax revenue in the U.S.
Given that revenue of $35 billion in 2025 is predicted for the U.S cannabis industry, companies that established a footprint in the states could capitalize in the future. With this in mind, many companies have been spending 2020 expanding operations. Provided you are looking for a cannabis stock predicted to see gains in the future let’s look at 2 marijuana stocks to watch in November.
Best Cannabis Stock for 2020: Canopy Growth Corporation
Canopy Growth Corporation (CGC Stock Report) is the largest Canadian marijuana company by market cap and a candidate for your cannabis stock watchlist. Yesterday the company released earnings that although showed a net loss of $97 million beat expectations. Canopy was able to achieve record quarterly net revenue of $135 million. In addition, the company increased its market share in the Canadian recreational market and is building momentum in the U.S.
Also important are cost-cutting measures the company is implementing that could increase savings in the range of $150-$200 million. In detail, these cuts include the cost of goods sold, general and administrative expenses, and inventory that could speed up the path to profitability. In addition, Canopy has plans to release THC infused beverages with Acreage Holdings in the summer of 2021. As the company increases ways to produce revenue growth potential could improve much more in the near future.
CGC stock has been in showing gains for November and seems to be settling around the $24.30 a share area. In addition, the stock reached its YTD high at the open in Monday’s trading. Since Canopy has been strategically preparing to enter the U.S cannabis market via its agreement with Acreage Holdings Inc. (ACRHF Stock Report) CGC stock should be a pot stock to watch in November. As the week continues a better entry could present itself in CGC stock so monitor this possible cannabis stock to buy.
Best Cannabis Stock for 2020: Curaleaf Holdings, Inc.
Curaleaf Holdings, Inc. (CURLF Stock Report) is a leading vertically integrated cannabis operator in the United States and has performed well in 2020. The company announced on Monday it will continue to expand its award-winning line of Select Oil brand products in Pennsylvania. In detail, the Select brand was acquired by Curaleaf in February 2020 and is found in 1000 dispensaries across 16 states. While Pennsylvania is the fifth most populated state in the U.S entry creates a broader market for the oil brand. Given that Select Oil set the standard for quality and innovation in cannabis oils it should improve Curaleafs revenue growth.
CURLF stock has climbed for the month of November currently trading at $10.73. Currently, the election rally has pushed it over the $11 mark. The stock reached its year high today pushing up to $11.20 at the bell. As Curaleaf continues building dispensaries and producing award-winning products cannabis investors should keep a close eye on CURLF stock.