How Bullish Sentiment Could Find Its Way Into These Two Pot Stocks to Watch
In the past few months, we have seen the cannabis industry take a bullish turn. Although there are still days where pot stocks take on losses, the positive sentiment has been overwhelming. With this, we have seen many of the most popular marijuana stocks to watch climb in the high double digits in the past few months. Because of this, there are some pot stocks to watch that may be slightly overvalued at this point in time. On the contrary, there are a large number of marijuana stocks that are still undervalued which means that there is potential.
These companies have a lot to offer cannabis stock investors and for that reason, they are worth taking a look at. Within the cannabis industry, investors often can be prejudiced toward a company based on what it does. But, there is value to be found in every area of marijuana stocks including pure-play, ancillary, and pharmaceutical pot stocks. If we consider the fact that there will without a doubt be growth in the cannabis industry in the next few years, we can then find companies with some real value. For that reason, here are two pot stocks to watch moving forward.
A Leading Canadian Cannabis Grower Pot Stock
OrganiGram Holdings Inc. (NASDAQ:OGI) is one of the leading Canadian marijuana stocks. Currently, OGI stock has a market cap of around $240 million. This puts it in the small to mid-range of marijuana stocks by market cap. Although it is on the smaller side when compared to the giants, OGI stock has a lot to offer investors. Currently, OGI stock is trading at around 2.6 times its forecasted sales which makes it quite a cheap pot stock to watch. OrganiGram has stated that it has a very large reach across the Canadian cannabis industry.
For this reason, it has had no trouble offloading its product into the market. But, as a smaller pot stock to watch, OGI stock can be more volatile than many other choices. Despite this, it does look like the company has a lot of potential moving forward. With Canada only just legalizing derivative products at the beginning of this year, there are a lot of opportunities for OrganiGram to capitalize on moving forward. With this in mind, it remains a leading pot stock to watch.
An Ancillary Marijuana Stock That Could Benefit From Future Industry Growth
Scotts Miracle-Gro Inc. (NYSE:SMG) is one of the most popular ancillary marijuana stocks to watch. Because it has gained so much popularity in the past few years, many believe that SMG stock is poised to grow substantially. For those who don’t know, SMG stock has grown from the company’s place in the gardening supply market. While the majority of SMG stock growth is attributed to home gardening supplies, the other portion is dedicated to marijuana grow products.
Because of this, it seems as though the risk for SMG stock may be less than more pure-play pot stocks. In addition, the company’s subsidiary, Hawthorne Gardening has picked up a lot of momentum for its commitment to providing hydroponic grow supplies. Although SMG stock can be volatile depending on the season, it does show a great deal of future potential. With its limited exposure to then cannabis industry, it remains one of the most interesting marijuana stocks to watch.
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