Finding Investments In The Best Cannabis Stocks Right Now
Are you looking for the best marijuana stocks to invest in this week? After more than two months of declines in the market top, cannabis stocks are showing renewed upward momentum. In April cannabis sales across the US showed significant growth. One example of this trend is Michigan where sales increased by 149% to $153.8 million for the month. In addition, more states continue to implement cannabis legalization with Alabama signing a bill to legalize medical marijuana in the state.
In the US and Canada, the cannabis industry is growing rapidly in 2021. One factor that is speeding up the expansion process is mergers and acquisitions. In 2021 M&As have enabled these cannabis companies to keep up with the rate of growth at the moment. In the past, the cannabis sector has been known for extreme market volatility and in 2021 this still holds true. Establishing new market highs in February the cannabis sector has pulled back since then and is now trading much lower in the market.
But there are some cannabis stocks to watch that have more market stability than most pot stocks. Ancillary cannabis stocks are those that support the cannabis industry without touching the actual plant. In many cases, this area of the market has substantial upside and has also maintained its market value well during this downturn in the sector.
Long Term Marijuana Stock Investments In 2021
Because of this stability, these top marijuana stocks are better for long-term investing. In 2020 some of these cannabis stocks delivered strong returns for investors. In the next five years, the cannabis market is predicted to grow significantly. This growth can turn into substantial market gains for traders in the future.
Another area that may hold future value for investors is the medical cannabis market. Currently, medical cannabis legislation is being passed in many new states. This is adding new markets where cannabis companies can produce larger revenue growth. For investors, this could be a good time to add top marijuana stocks to your watchlist in May.
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Before investing always do your own due diligence and market studies on a company. In many cases, this could help you make better investments for your portfolio. With this in mind, let’s take a closer look at 2 of the best marijuana stocks to buy for long-term investing in cannabis stocks.
Marijuana Stocks To Watch
Innovative Industrial Properties, Inc.
As a real estate investment trust, IIP is one of the only REITs solely focusing on the state-licensed cannabis industry. At the present time, IIP owns 70 properties across 19 states nationwide. In May IIP announced first quarter 2021 results that generated Q1 total revenue of about $42.9 million up 103% from the prior year. As an incentive for the long-term investor, IIP paid a quarterly dividend of $1.32 per share in April. As it stands the company continues to drive revenue growth with the acquisition and leasing of new properties.
At the present time, the company has approximately 6.4 million rentable square feet and another 2.4 million square feet of rentable space under development. Additionally, IIP has 100% of these properties leased with remaining lease terms of about 16.8 years. In general, this shows the long-term revenue IIP will produce for shareholders. But in the market, IIPR has been dropping in value this week.
IIPR stock closed on May 18th at $169.96 and is down 8.10% in the last 30 days. In February the stock reached a new high of $222.08 but is down 7.19% year to date. Recently 3 analysts at Tip Ranks have given IIPR stock a 12-month average price target of $207.67 per share. In essence, this represents a 22.19% increase from current levels. For this reason, IIPR could be one of the best cannabis stocks to buy for long-term investing in the sector.
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AbbVie Inc.
One of the world’s leading pharmaceuticals AbbVie Inc. has delivered innovative medicines to help solve the world’s health issues. The company is one of the largest publicly trading medicinal companies by market cap and is focused on the therapeutics market. Specifically, AbbVie provides medical solutions in areas like immunology, oncology, neuroscience, eye care, virology, women’s health, and gastroenterology. For some background, before becoming AbbVie the company then called Abbott made the acquisition of Solvay’s pharmaceutical division in 2010.
As a result, AbbVie now has the drug Marinol in its catalog. Marinol is a cannabinoid-based medicine that is one of the first FDA-approved cannabis drugs on the market. Currently, doctors prescribe the drug for patients with nausea and vomiting from cancer medications. Also, some doctors prescribe Marinol to people with AIDs to combat the lack of appetite. I April Abbvie recently beat its estimates for its first-quarter earnings and raised its guidance for 2021. In detail, the company delivered Q1 net revenues of $13.010 billion on a GAAP basis. This is an increase of 51% on a reported basis. The company also raised its 2021 GAAP diluted EPS guidance to $6.89-$7.47. Currently, AbbVie pays an annual dividend of $5.20 per share with a dividend yield of 4.45%.
ABBV stock is trading at $115.24 in the first half-hour of May 19th. In May ABBV stock reached a new 52 weeks high of $117.90 and is up 9.39% year to date. According to analysts at CNN Business ABBV stock has a 12-month median price target of $126.00 per share. This would represent a 9.33% increase from current levels. With this in mind, ABBV stock could be a good medical marijuana stock to buy for your long-term portfolio.
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