Top Cannabis Stocks to Consider This Month

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The cannabis market has managed to stay extremely lucrative over the course of the past several years, but new updates in terms of legislation and the changing public sentiment have contributed to an even higher amount of growth in the market. A few stocks have come to the forefront of the new market given the influx of capital and resources now that legalization is occurring in various parts of the world. With Canada leading the charge on the legal cannabis industry, it seems as though the investments will continue to pour in.

One of the most prominent stocks in the industry and one that is more a part of the ancillary market on cannabis has remained Scotts Miracle-Gro (NYSE:SMG). Scotts has been one of the largest suppliers for the actual growing of the physical cannabis plant for some time now, and has recently delved into the market by branding new products specifically for the growth of cannabis. The company saw its stock price drop by around 20% during the first half of this year, but there are two main reasons as to why investors believe this happened. One of the most prominent reasons comes from the disorganization of the California roll-out of recreational cannabis. When California decided to legalize the use of recreational cannabis on January 1st, there were still many issues that needed to be solved before the industry could be fully successful. Many of these issues have been ironed out, but this did cause a large amount of uncertainty in the market.

The second reason for this comes from the fact that an especially long winter meant that consumers in the U.S. did not end up buying their usual lawn care products until much later in the season. These issues, however, are extremely temporary, and investors have already moved back into the spotlight of Scotts Miracle-Gro.

Next on the list should come as no surprise as it is Canopy Growth Corporation (NYSE:CGC). Canopy Growth has remained one of only a few companies in the industry to continue delivering solid returns even when other stocks were unable to. The company began the year on a positive note as one of the only marijuana-play stocks to be listed on an exchange as prestigious as the New York Stock Exchange. The company is up by around 25% this year and looks to continue making gains as we move through the rest of the year. One of the biggest pieces of news to hit this side of the market has as stated above, been the addition of recreational cannabis into Canada. This bill is supposed to go into effect as soon as September of this year, which means that Canopy could potentially continue to gain throughout the end of the 2018 year. According to one report “the company plans to get into the cannabis-infused beverage market.” This has been a part of their new strategy as they have partnered with Constellation Brands (NYSE: STZ). All in all, Canopy continues to present a positive way to get into the cannabis industry for those looking for a place to start.

The cannabis industry as a whole has been in its infant stages for some time now, but with a large amount of partnerships and continuing investments into the industry, it looks like the market is growing very quickly. The next few years will be extremely instrumental in securing the growth of the industry as a whole, but only time will tell how new legislation and the changing public opinion on cannabis can continue to effect the market.

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