Top Cannabis Investments In 2021
Are you looking for the best marijuana stocks to invest in this summer? So far in June, most leading cannabis stocks have begun to show some upward momentum until this week. After climbing for the first 2 weeks of the month these last couple of days have seen the cannabis sector give most of its momentum back. In general, 2021 has seen the cannabis sector show its traditional market volatility as the year progressed.
After rising to new highs in February the top marijuana stocks to buy saw a sharp decline and have been consolidating for about 4 months. As a result, most top pot stocks are trading near some of their lowest price points so far this year. On the other hand, leading cannabis companies are performing well delivering strong earnings for the first quarter of 2021. Needless to say, the cannabis industry is expanding rapidly across the US and on a global scale.
For the next five years, many analysts are predicting extreme growth in the cannabis market. In fact, some are expecting the industry to more than double cannabis sales by 2026. For investors, this means there could be long-term gains in some top marijuana stocks. But because of the cannabis sector’s volatility, there are some marijuana stocks that have shown more stability for long-term investors.
Different Investment Options In the Cannabis Sector
At the present time, ancillary marijuana stocks have shown investors more stable market movement than vertically integrated cannabis stocks. Primarily ancillary marijuana companies are those that support the cannabis industry without touching the actual cannabis plant. In the past couple of years, these supporting companies have grown alongside the cannabis market and have delivered significant returns for investors.
Now with the possibility of federal cannabis reform investors are looking for the best cannabis stocks to invest in for the long term. Besides ancillary marijuana stocks, there is another way to gains exposure to the cannabis sector that gives investors the ability to invest in a particular area of the market. In 2021 more investors are focusing on marijuana ETFs as a way of establishing a broad position in the cannabis market.
For those that don’t know ETFs or exchange-traded funds is a type of investment that has many characteristics of a mutual fund except it trades on the market like a stock. Currently, top cannabis ETFs represent an opportunity for investors to gain exposure to a particular part of the market like the US cannabis industry versus the Canadian market. With this in mind, we can look at some of the best ancillary marijuana stocks and cannabis ETFs in June.
Marijuana Stock And Cannabis ETF To Watch
Innovative Industrial Properties, Inc.
One of the only real estate investment trust that’s focusing on the US licensed cannabis industry is Innovative Industrial Properties, Inc. Currently, IIP owns 72 properties across 19 states nationwide. During May IIP closed several acquisitions that include properties in Pennsylvania and Massachusetts expanding its lease portfolio. Once the purchase of the property is complete IIP will enter into a long-term triple-net master lease for the properties.
In its latest first quarter 2021 results, the company saw total revenue of about $42.9 million an increase of 103% from the prior year. At the present time, IIPR stock is outpacing the stock market gains. On June 15th IIP declared its second-quarter 2021 dividend. In detail, the company announced a dividend of $1.40 per share which represents an increase of 6% over the first quarter dividend. Currently, the dividend equates to an annualized dividend of $5.60 per share and is the 11th dividend increase since 2014.
IIPR stock closed on June 15th at $189.25 up 3.34% year to date. In February IIPR stock reached a high of $222.08 and has delivered a total return of 486.08% to shareholders in the past 3 years. According to analysts at CNN Business IIPOR stock has a 12-month median price target of $219 per share. In essence, this would represent an increase of 15.72% from its current trading price. For this reason, IIPR stock could be one of the best marijuana stocks to buy and hold for the long term.
AdvisorShares Pure US Cannabis ETF (MSOS)
In 2021 Pure US Cannabis ETF is the first US marijuana ETF to surpass $1 billion in assets under management. Primarily, this ETF focuses on American cannabis companies for their holdings and assets. Generally speaking, the ETF has assets that include US multi-state operators, top U.S. cannabis REITs, CBD companies, pharmaceutical companies, and hydroponic suppliers. Specifically, the cannabis ETFs majority holdings are Trulieve Cannabis Corp. (TCNNF), Curaleaf Holdings, Inc. (CURLF), Green Thumb Industries Inc. (OTC: GTBIF), and Cresco Labs Inc. (OTC: CRLBF).
At the present time, US cannabis companies have outperformed Canadian cannabis companies significantly. In the first quarter of 2021 most US companies have delivered strong financials. Meanwhile, Canadian companies have struggled to perform. As it stands the cannabis sector is at some of its lowest market value this year. This has positioned MSOS ETF at a price point that could deliver substantial upward momentum this summer.
MSOS ETF closed on June 15th at $38.80 up 6.30% year to date. In February MSOS ETF reached a high of $55.91 and is down 5.32 the past five days. According to analysts at Wallet Investor MSOS ETF has a 1-year forecast price target of $70.996 per share. This would represent an increase of 82.98% from its current trading levels. With this in mind, MSOS ETF Could be one of the best marijuana ETFs to buy in 2021.