Should You Take a Closer Look at These Pot Stocks?
Big marijuana stocks are often a great place to start when looking for a pot stock to watch. Although these companies can be quite volatile, they often represent the top of the cannabis industry. Because of this, when good things happen to the industry at large, these marijuana stocks are often the first to show results. But, as usual, results are never guaranteed in any industry let alone with pot stocks.
While some top players like HEXO Corp. (NYSE:HEXO) and and GrowGeneration Corp. (NYSE:GRWG) have shown solid results, there are some larger marijuana stocks to watch. This mostly includes the pure-play pot stocks, which have been able to come back in great numbers since the middle of March. Since that time, Covid has shown that there is a large increase in the demand for cannabis flower and cannabis products. Major retailers in the U.S. like Green Thumb Industries Inc. (OTC:GTBIF), are doing a majority of the supplying in terms of cannabis storefronts. With that in mind, here are two big name marijuana stocks to watch.
A Large Canadian Marijuana Stock to Watch
Aurora Cannabis Inc. (NYSE:ACB) is one of the most prominent marijuana stocks in the Canadian cannabis industry. Since 2015, reports have shown that ACB stock is up by as much as 250%. This is a massive gain for ACB stock, but one that has been reflected across the cannabis industry during that time. But, after hitting a high of $128 a year or so ago, the company backed down to a more reflective price of its business model. In its most recent quarterly earnings report, ACB stock posted a major amount of earnings that were unexpected to the market.
This resulted in a 200% price jump for the company in only a short period of time. Since then, investors have begun to pay a greater deal of attention to the company for its potential future plans. With Canada showing higher cannabis demand than in many months prior, many believe in the future of Aurora Cannabis. But, a lot of this is contingent on what the company does in the near future. Because of this, it remains a leading marijuana stock to watch.
A Major Pot Stock With an Interesting Past
Cronos Group Inc. (NASDAQ:CRON) is one of the largest cannabis producers in the industry. The company has similarly benefited from Covid in relation to the increased worldwide demand for marijuana. Although this demand has been felt around the industry, the majority of it has been centered in North America. CRON stock recently reported an operating loss of roughly $31 million which is almost double what it posted in the year prior. Because of this, CRON stock shot down by around 15% to just shy of $5.50.
Now, some investors could view this as a short term value buy, but others may see some long term issues with CRON stock. We have to consider the longer term of the cannabis industry when thinking about any of the largest pot stocks to watch. Because these companies have the greatest amount of exposure to the industry at large, they often can be the most volatile. On the other hand, these companies also have the greatest amount of market exposure when things in the cannabis industry are good. With roughly $1.3 billion in the bank, CRON stock remains a more secure pot stock to watch.