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The Cannabis Industry Could Post Substantial 2020 Growth

Marijuana Stocks Continue To Grow

Will Marijuana Stocks Continue to Perform Into 2021?

In the past few months, the Covid pandemic has wreaked havoc on many world markets. In the beginning of the pandemic, this was the case for the cannabis industry as well. Top marijuana stocks like Innovative Industrial Properties Inc. (IIPR Stock Report), Trulieve Cannabis Corp. (TCNNF Stock Report), and Green Thumb Industries Inc. (GTBIF Stock Report) saw major losses in only a short period of time. Shortly after however, marijuana stocks quickly began to climb quite quickly. Other industry players like Curaleaf Holdings Inc. (CURLF Stock Report) and OrganiGram Holdings Inc. (OGI Stock Report), saw their stock prices begin to shoot up by massive amounts.

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Since March, it is not uncommon to see many pot stocks grow in the double and triple digits. Now the main reason for this is the effect of the widespread stay at home orders that have been put in place. With these orders, more people are at home smoking cannabis than ever before. Because of this, many leading pot stocks have reported extremely high cannabis demand as well as better than expected financial results.

In 2020, the global cannabis industry is projected by analysts to hit as much as $20 billion in sales. If that comes true by the end of the year, we will have witnessed as almost 40% jump in sales over the previous year. By the year 2024, BDS Analytics projects that the cannabis industry will reach as much as $47 billion in sales. With that in mind, let’s take a closer look at how marijuana stocks could perform into next year.

The Numbers for Marijuana Stocks This Year Don’t Disappoint

In the cannabis industry, analysts expect growth to continue in both the short and long term. Roy Binham, the co-founder of BDS Analytics stated that “while the 2020 forecast is down less than 1% from the forecast released earlier this year, cannabis sales YTD have swung wildly in different states as a result of COVID-19. Sales in many U.S. markets performed stronger than expected, resulting in upward forecast revisions for Colorado, Illinois, Michigan, New Mexico, Oklahoma, and Oregon, while sales in Nevada dropped significantly and are struggling to recover.”

As stated before, Covid has resulted in many marijuana stocks posting significantly higher numbers than expected. Because of this, investors have seen pot stock prices climb by large amounts in the past few months. While we can’t say exactly that the bullish sentiment will remain forever, in the short term it looks like things are going quite well.

The Effect of the Election on Marijuana Stocks

One of the biggest catalysts for the future of the cannabis industry is the effects that the election will have. This year, 12 states will have cannabis on the ballot. Historically, the majority of states that have had cannabis on the ballot, have seen the legislation pass. This year should be no different in that regard. But as always, we cannot truly predict what will happen whatsoever. In the past few months, we have also seen a large amount of tax revenue be driven to states that have legal cannabis industries. This is a major push for new states to join the group of those that already have legalized marijuana.

In addition, the federal government has yet to change its laws regarding the cannabis industry. If it does, it would be a major boost for both marijuana stocks and small cannabis businesses alike. In 20 states so far, marijuana has been deemed an essential business during the pandemic. Because of this, the importance of the cannabis industry to the U.S. has never been more important. With that in mind, this November could be big news for the cannabis industry at large.

Marijuana Stocks Continue to Shine Across the Industry

In the past few months, we have seen several sectors of the cannabis industry grow substantially. This includes both MSOs and ESPs. On one hand, MSO pot stocks have been able to dominate the retail marijuana landscape by offering cannabis straight to consumers. These companies usually have a large range of dispensaries in many states around the country. Because they are the most forward facing aspect of the cannabis industry, MSOs are often a good marker of how the cannabis industry is going.

On the other hand, ESPs or extraction service providers have also seen a lot of growth in the past few months. This is due to the legalization of derivative products that took place in Canada at the beginning of this year. With this in mind, investors should always be looking for where the most value is in the cannabis industry. This includes searching through all of the different areas of the market where companies might have upward momentum left. All things considered, the future of the cannabis industry and marijuana stocks alike, looks to be quite solid.

By J. Phillip

Coming from Miami FL, Jonathan Phillip or (J. Phillip) is a social media marketer and currently head of PR and social media management for MarijuanaStocks.com. When working with clients in various sectors Jonathan will use his expertise and knowledge to make sure the correct audience is viewing and engaging with your content product or service. Jonathan is a self-taught marketer and entrepreneur learning from the best and sharpening his skills with each project.

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