September Could Bring In The Green For These Pot Stocks
As with every new month, the potential for marijuana stocks is continuing to rise. Companies like Tilray Inc. (NASDAQ:TLRY) and HEXO Corp. (NYSE:HEXO) have been leading the industry since they are at the top of the cannabis industry. But, the largest pot stocks to watch are not always filled with potential. As intelligent investors, we always have to know the financials of the company we are looking at. Since this data is easily available online, it can be an incredibly useful tool for investors to utilize. When looking for a pot stock to watch, investors should make sure they know about two factors.
The first is profitability. Whether or not a marijuana stock is showing a profit is a major identifier of what type of success it could see. The second factor is what type of future plans the company has in store. This can also help to determine a long term game plan for investors. Both of these factors are extremely important when looking to identify value in the cannabis industry. While some pot stocks like Innovative Industrial Properties Inc. (NYSE:IIPR) may show solid short term numbers, investors should use the above factors to determine the longer term.
A Leading MSO Pot Stock to Watch
Green Thumb Industries Inc. (OTC:GTBIF) is one of the most popular MSO pot stocks that investors have been watching. Because it is based in the U.S., the company is subject to the individual statewide laws in where it works. In the first half of 2020, GTBIF stock reported as much as $220 million in revenue. This number already outpaced the entire revenue that GTBIF stock posted in the 2019 fiscal year.
Currently, GTBIF stock shows that the company runs as many as 48 stores around the country. With revenue growing at a current rate of 170% per year, Green Thumb Industries looks like it has a great deal of future potential. In addition, the company has been working to put a large amount of its profits back into the company. Because it operates retail locations, its business model can be more capital intensive than many others. With that in mind, GTBIF stock continues to be a leading marijuana stock to watch.
A Canadian Cannabis Producer
Village Farms International Inc. (NASDAQ:VFF) is a very popular marijuana grower based out of Canada. The company began its operations as a grower of vegetables. But, it quickly realized the large potential of growing cannabis to be sold in the market. Although it does grow a great deal of cannabis, VFF stock has also benefited greatly from its current sales of vegetables. The company a while back created a joint venture known as Pure Sunfarms to create high quality cannabis utilizing its premium grow methods.
This joint venture has been able to push gross margins as high as 44% in the past year. VFF stock reports that it owns as much as 60% of Pure Sunfarms which gives it complete say in what happens. Although VFF stock is a pure play marijuana stock, it tends to be less volatile than other similar pot stocks to watch. But, as an industry leader in producing high yield, high quality cannabis, Village Farms continues to illustrate to investors just why it is a marijuana stock to watch.
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