Marijuana Stocks to Keep On Watch The Rest Of 2018

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The cannabis stock market has been thriving for some time now with a quick dip at the beginning of the year. Things look as though they are on the up for the marijuana industry as a series of positive legislation and public approval continues to hit the market. Several stocks have managed to come to the forefront of the industry because of this, and many of them have become the largest players in the industry. The companies on this list should not come as a surprise, but they are definitely the ones to look out for as we look toward the higher end of the cannabis market this year.

The marijuana stock market has changed drastically over the past ten years. For a long time, cannabis had been under the radar, treated simply as a drug. With new research and legalization across parts of the U.S. and Canada, it seems as though the market has evolved much more than anyone could have anticipated. One of the fastest growing parts of the industry is the companies that are working to build the infrastructure of the cannabis market.

One of the most prominent of those companies is Scotts Miracle-Gro (NYSE:SMG). Scotts has been around for quite some time and has been known as a supplier to those with a green thumb. Several years ago, the company realized the amount of potential they have to help those who want to grow cannabis, and have since become one of the largest suppliers to those who do just that. Scotts has come out with several products geared solely toward the marijuana industry and is looking to make even more in the near future.

Scotts has also recently announced that they will be acquiring Sunlight Supply, a large hydroponic distributor within the U.S. This transaction was valued to be at around $500 million or so, which can help to illustrate the massive amount of potential that currently exists in the cannabis market. The acquisition of Sunlight Supply “gives SMG immediate impact on the [hydroponics] category,” analyst William Chappell said. “For investors, there is a dearth of ways to play the legalization trend in the public equity markets and SMG is one of the largest companies in terms of market cap with a firm foot in the door of the industry.”

Next on the list is the company known as Aurora Cannabis. Aurora should be a household name in the cannabis industry at this point, and recently made headlines again after acquiring MedReleaf, a large competitor for over $2.5 billion. The deal represents the largest deal in the cannabis market of all time and seems as though it has only just begun. This deal also comes at a time when Canada is scheduled to legalize the use of cannabis nationwide for recreational purposes by the end of this summer. This proposition by the Canadian government has been awaited for quite some time now, so investors have begun to find new ways to invest in the cannabis market. Aurora represents one of if not the, largest cannabis companies in the world, meaning that they should be one of the safer investments in the market.

The cannabis market is still very much in its infant stages which means that there is a large amount of room to grow. Acquisitions in the industry are still pointing themselves out to be one of the largest reasons that the market is continuing to grow. With changing sentiments around cannabis for the better, and new laws going into place around the world, it seems as though the cannabis market is just now getting started.

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