Investments In The Top Marijuana Stocks In 2021
Are you looking for investment opportunities in top marijuana stocks right now? Recent market declines have made the best cannabis stocks to invest in much more attractive to traders. So far this year most leading cannabis companies are reporting first quarter 2021 earnings that show significant revenue growth when compared to the prior year. In the US the cannabis industry is growing rapidly with new states like Alabama, and Montana also legalizing cannabis.
On the federal level, the US is moving closer to introducing legislation for cannabis reform and legalization. In 2021 cannabis reform is one of the biggest catalysts for the marijuana industry. In reality not even strong earnings from leading companies have been able to create momentum in the cannabis sector this year. Since the presidential election, most marijuana stocks have moved on the possibility of a federally legal US cannabis market.
But recent declines in the best marijuana stocks to buy in 2021 have created a good opportunity for those investors looking to establish positions in May. In some ways, the current downturn in the market may present larger gains in the future. Looking back to the highs marijuana stocks reached in February the possibility of the sector heading near those prices would mean a significant move. For investors looking for long-term investments in the cannabis sector, there are ways to gain exposure to the cannabis industry that are more stable than others.
Marijuana ETFs And Pharmaceutical Cannabis
Currently, one way more traders are establishing investments in the cannabis industry is through top marijuana ETFs. ETFs or exchange-traded funds are a type of investment fund that trades on the stock exchange. In many ways, ETFs are similar to mutual funds with the exception that ETFs are bought and sold throughout the day in the market.
In many cases, marijuana ETFs provide exposure to a specific area of the cannabis market. Currently, some give investors broad exposure to the US cannabis industry and many of its ancillary companies. With analysts predicting the US market will grow substantially in the next five years this could be a better option for long-term investing.
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Another area of the cannabis sector that has recently been transformed by mergers and acquisitions in the medical cannabis market. According to BDSA US legal cannabis sales surpassed $17.5 billion in 2020 and are projected to reach $55.9 billion by 2026. During this time the medicinal segment of the cannabis industry will grow substantially. Making medical cannabis stocks possible long-term investments. With this in mind let’s take a closer look at 2 ways to invest in the cannabis industry for the long term.
Marijuana Stocks To Watch
- AdvisorShares Pure US Cannabis ETF (NYSE: MSOS)
- Jazz Pharmaceuticals plc (NASDAQ: JAZZ)
AdvisorShares Pure US Cannabis ETF (MSOS)
AdvisorShares Pure US Cannabis ETF is the first US cannabis ETF with $1 billion in assets to focuses solely on American cannabis companies for their asset holdings. This ETF has current assets which include some of the leading US MSOs, top U.S. cannabis REITs, CBD companies, pharmaceutical companies, and hydroponic suppliers. Specifically, this marijuana ETF has majority holdings in Trulieve Cannabis Corp. (TCNNF), Curaleaf Holdings, Inc. (CURLF), Green Thumb Industries Inc. (GTBIF), and Cresco Labs Inc. (CRLBF). With the cannabis sector losing value for three months there could be some upside for MSOS ETF in the coming months.
Judging from its top assets this marijuana ETF could be well-positioned to give investors returns from top US cannabis companies. MSOS ETF is trading at $39.75 on May 20th up 8.36% year to date. In February MSOS ETF reached a high of $55.91 and has been consolidating around its current levels for 30 days. According to analysts at Wallet Investor MSOS ETF has a 1-year forecast of $75.875 per share. In essence, this would represent a 90.88% increase from current levels. For this reason, MSOS ETF could be a way to invest in the American cannabis industry for the long term.
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Jazz Pharmaceuticals plc
Jazz Pharmaceuticals plc, a biopharmaceutical company, that develops and markets pharmaceutical products for many different medical needs. The company produces medicines for the US, Europe, and international markets. Primarily, the company has a portfolio of products that focuses on neuroscience, including sleep medicine and movement disorders; and in oncology, including hematologic and solid tumors. Recently JAZZ acquired GW Pharmaceuticals which produces the cannabidiol-based FDA-approved drug EPIDIOLEX. Specifically, the drug is in use to treat seizures in patients with Dravet syndrome, and tuberous sclerosis complex.
Recently, JAZZ beat Q1 earnings estimates with total revenue first-quarter revenue of $607.5 million up 14% from Q1 2020. Additionally, the company gave 2021 total revenue guidance of $2.55-$2.70 billion. Generally speaking, JAZZ is a good way to gain exposure to the biopharmaceutical industry. Which includes one of the top cannabis-derived medications.
JAZZ stock is up 6.16% year to date trading at $176.34 on May 20th. In May JAZZ stock reached a new high of $181.46 and is up 4.82% in a month. According to analysts at CNN Business JAZZ stocks has a 12-month median price target of $205 per share. Essentially this would be a 16.22% increase from current levels. With this in mind, JAZZ stock could be a top medical marijuana stock for your long-term portfolio.
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