While the majority of the cannabis industry has been hit quite hard by the coronavirus, there are still some solid options out there for pot stocks to watch. It is worth mentioning that investors should be extremely aware of the constant price action. With the effects of this pandemic stemming quite far into the industry, it seems as though we are far from seeing the end of these massive fluctuations. But, within the volatility lies a large amount of hidden value. Many of the top marijuana stocks in the market, now lie at extremely bare-bones prices.
This means that investors could come in and scoop up some intriguing pot stocks at very low levels. But, just because a pot stock is cheap doesn’t mean it’s the right choice. Finding the right pot stock means putting hours of research and time into a companies financials, statements, and current data. The most active investors are the ones with the best chance of seeing gains during a time like this.
But with price action moving the way it is, it might be time to take a second look at some alternative pot stocks that are producing some very interesting numbers. These companies might not be the most obvious choices, but they without a doubt represent value to investors who can find it. Because of this, these two pot stocks are definitely worth watching.
A Pot Stock Worth Watching
Constellation Brands (STZ Stock Report) is a cannabis stock by virtue of its massive investment in one of the leading companies in the industry. The multi-billion investment which took place around 3 years ago, helped to give Constellation Brands a large footprint in the cannabis market. Its agreement with Canopy Growth (NYSE:CGC) was created with the goal of producing cannabis-infused beverages. But, Canopy’s performance has been quite negative in terms of Constellations balance sheet.
The real investment opportunity here is with Constellation’s primary business model. As the producer of Corona and Modelo, the company is one of the largest beverage companies in the world. It focuses on producing cannabis-infused beverages that should also help two push its revenue even further once these beverages see more traction. For now, it greatly depends on what Canopy Growth does to produce higher operating revenues before we can truly call Constellation Brands a pot stock to watch.
Is This Cannabis Company A Pot Stock To Watch
Innovative Industrial Properties (IIPR Stock Report) is a more obvious choice when it comes to investing in cannabis stocks. Although the company is not a traditional pot stock, it does have quite a large role in the greater industry. As a REIT, IIPR operates by purchasing and then leasing out facilities to those who wish to grow cannabis. Recently, it has seen heightened demand for marijuana, which means more people looking to lease properties to grow cannabis. In 2019, the company was able to push its revenue up by as much as 270%.
While this amount of growth is not unprecedented in the cannabis market, it is definitely a major positive for the company. One of the major benefits of IIPR is that it offers high dividends to its investors. Right now, it’s divided is around 6% which is quite high. The company has grown this dividend yield by as much as 6% in the past three or so years. Because of these impressive numbers, the company continues to be a pot stock to watch.