Two Potential Marijuana Stock Calls for September
As far as marijuana stocks go, the majority of the focus is currently on the U.S. cannabis industry. Despite Canada being first to legalize pot, U.S. based pot stocks have seen a large uptick in trade interest in the past few months. This is due to a few reasons including the upcoming presidential election as well as other factors. With this, many leading pot stocks to watch are being traded by U.S. investors. Companies like Canopy Growth Corp. (NYSE:CGC) and Tilray Inc. (NASDAQ:TLRY), do have potential in the Canadian cannabis industry, but profitability and high debt amounts have put them on the back burner.
Within the U.S. cannabis industry, the most popular marijuana stocks to watch include MSOs and ESPs. These two areas of the market have been able to push high profitability and large margins. Because of this, a lot of the focus has been on these areas of the industry. However, investors should always do their research on an individual company, before simply investing. With that in mind, here are two potential marijuana stocks for September.
A U.S. Based MSO Pot Stock to Watch
Green Thumb Industries Inc. (OTC:GTBIF) is one of the most popular MSOs in the U.S. While other MSOs like Trulieve Corp. (OTC:TCNNF) have shown promise, GTBIF stock is in a league of its own. Year to date, GTBIF stock is up by as much as 40%. But, that does not account for the large losses it took prior. Since mid-March, GTBIF stock is up total by almost 250%. For any investor, that is quite a hefty number to consider. In addition, during its most recent second quarter, GTBIF stock posted a sales increase of around 17%. Year over year, it has posted almost 170% in sales increases.
That number represents a yearly sales amount of roughly $120 million. Many investors believe that GTBIF stock has a solid potential long term future. Although it is not profitable, Green Thumb Industries currently has as many as 48 retail locations around the U.S. This represents a U.S. presence in as many as 10 states. For the long term, GTBIF stock has been showing a great deal of revenue growth that outweighs its expenses. For this reason, investors should continue to keep an eye on Green Thumb Industries.
Marijuana Stock To Watch: A Gardening Supply Company
GrowGeneration Corp. (NASDAQ:GRWG) is a leader in the ancillary area of then cannabis industry. So far in 2020, GRWG stock has performed very well. For those who don’t know, GRWG stock is a part of the gardening sector of the cannabis industry. The company produces hydroponic grow supplies which it then retails across many stores in the U.S. In its most recent second quarter, GRWG stock posted a revenue increase of roughly 125%.
This represents a revenue amount of around $43 million. In terms of net income, GRWG stock reported a number of around $2.5 million. This is more than double what it produced in the previous year time frame. With Covid boosting cannabis demand, GrowGeneration has seen a large uptick in sales in the past four months. Because of this, many believe the strong bullish sentiment could increase in the near future. With that in mind, it remains a marijuana stock to watch.