The major marijuana stocks in the cannabis industry represent the top-notch of the market. With only three or four companies occupying this area of marijuana stocks, it can be difficult to choose just one or two pot stocks to watch. But, this is where we come in. There are a couple of tips for finding the right marijuana stocks to watch, especially during this tough time in the market. It’s also worth noting that no strategy is perfect and there are some flaws to every method. This is simply the plight of investing in any industry, let alone the cannabis industry.
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But, pot stocks are notoriously volatile and that is definitely something to keep in mind. This volatility usually strikes the top tier of the marijuana industry before it trickles down to the smaller companies. The top companies in the industry do present a great place to begin searching for marijuana stocks to buy, and ones that could have real long term potential.
Within the industry, there is potential for both the long and short term. The long term, however, is where we may begin to see the most gains as projections continue to rise for the five to ten year period. With this in mind, these two top market cap pot stocks continue to present investors with interesting opportunities.
The Largest Cannabis Stock in the Industry
Canopy Growth Corp. (CGC Stock Report) is a company that is best to think of in the long term. Prior to the coronavirus, Canopy Growth looked like it could be showing some real long term potential. But, the company has since seen some real downturns in the industry. These challenges have hit the company hard, but it may mean that now could be the time to buy the dip. One of the biggest positives for the company is that it has a large amount of free cash. This is due to the investment made by Constellation Brands (NYSE:STZ) only a few years back. But, large free cash alone does not qualify the company as one to invest in. 
However, Constellation Brands last week purchased almost 20,000,000 warrants of CGC. This shows just how much potential they believe the company to have. One of the factors that Canopy Growth has on its side is its sheer size. It is the largest cannabis stock by a stretch, which means that it could continue to lead the industry into the future. This could also mean that the company could receive a large portion of the growth coming in the next few years. For now however, it may be a waiting game to see if Canopy can get to a low enough price to make it a solid marijuana stock to watch.
The Other Big Pot Stock Player
Aurora Cannabis Inc. (ACB Stock Report) has definitely seen better days. Despite the market seeing some real uptrends in the past two weeks, Aurora has not managed to grow in value by that much. The company is expected to release its earnings on May 14th, which could show some real positives. But, investors have not gotten too excited yet. Again, Aurora is another company that may be best to think of in the long term. Similar to Canopy Growth, the biggest factor that Aurora has on its side is sheer size.
The company is also in the production of an extremely large amount of cannabis which could also help its case. But, Aurora has some real troubles. The company does not have a major investment like Canopy and has continued to post some serious losses despite large revenue amounts. The company has worked to cut costs by laying off workers and halting production, but only time will tell if this is enough to turn its business around. For now, investors should be skeptical about calling Aurora a marijuana stock to watch.
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