Are These Marijuana Stocks Leading The Industry
Recently, the feelings of many investors seems to be negative with the current trading in the market. This is partly due to the probability of our government not coming to an agreement on the stimulus package before the election. As a result, most marijuana stocks are trading lower in the market. Subsequently, another issue was when Aphria Inc.’s (APHA Stock Report) posted a negative earnings report. In fact, the company fell short of analyst expectations bringing APHA Stock 15% lower in early morning trade action.
To demonstrate how pot stocks affect each other, Aphria’s dismal earnings also brought other Canadian marijuana stocks lower as well. Canopy Growth Corporation (CGC Stock Report) stock was down more than 3% in early trading on October 15th adding to its declines in the current week. Because of the stimulus package delays and new Covid-19 vaccine concerns, the stock market seems to be ending the week on a downtrend.
Are Pot Stocks a Good Investment?
It’s important to realize that many of the top marijuana stocks experience regular market volatility. Once you have a better understanding of the risk involved in the cannabis sector you can start looking for possible marijuana stocks to buy. With this in mind, investors should pick a trading strategy that they are comfortable with and begin their research on these cannabis companies. With attention to detail, traders can find a pot stock to buy with the most possible growth potential for their portfolio.
Generally speaking, many cannabis companies have recovered well from the pandemic market crash in March. The most compelling evidence of cannabis industry growth in 2020, is the increased demand for cannabis across the nation. To clarify marijuana companies were deemed an essential business allowing most dispensaries to stay open during the shutdowns. This helped improve sentiment towards federal cannabis legalization in the U.S and also allowed cannabis businesses to expand operations during that time. There are many different kinds of marijuana companies to choose from when deciding which is the best fit for you. Let’s take a closer look at 2 of the best performing marijuana stocks in the cannabis industry.
Top Performing Marijuana Stock: Innovative Industrial Properties, Inc.
Innovative Industrial Properties, Inc. (IIPR Stock Report) is the first and only real estate company on the NYSE that focuses on working with the licensed U.S. cannabis industry. Currently, the company owns 63 properties across the states that it holds leases on with some of the top marijuana stock companies in the industry. Many analysts believe Innovative Properties is one of the best-positioned companies to grow alongside the U.S. marijuana industry. For this reason, more hedge fund companies have been bullish on IIPR stock this year.
In fact, IIPR stock was in 20 hedge fund portfolios at the end of the second quarter. In addition, IIPR stock is up more than 70% since April. Not to mention Innovative Properties also gives a dividend yield as an incentive to investors. Recently this yield was raised to $1 quarterly or 5.5% yield. In view of the profitability and stock incentives given by Innovative Properties, this stock is a pot stock to watch.
Top Performing Marijuana Stock: The Scotts Miracle-Gro Company
The Scotts Miracle-Gro Company (SMG Stock Report) is one of the world’s leading suppliers of consumer lawn and gardening products. The Company has outperformed the market that it’s in for 2020. Scotts is also the sole owner of its hydroponic growing subsidiary Hawthorne Gardening. With the marijuana industry in mind, the company developed Hawthorne to become a leading supplier to cannabis growers in the industry. Both businesses have seemed to flourish during the pandemic shutdowns.
As it seems more people developed a green thumb during the year. And as more states legalize cannabis Hawthorne stands to have some solid growth in the coming years. With about $3.2 billion in sales this ancillary marijuana stock company has become a possible pot stock to buy. SMG stock has seen 57% gains year to date and many analysts believe it might keep giving. With that in mind do some due diligence and find the best investment for your portfolio.
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