Will Pot Stocks Continue to Gain Value?
While the best-performing marijuana stocks start settling in the market for November investors are becoming interested in the cannabis sector. As a whole cannabis stocks in the U.S have performed impressively for shareholders. As it stands most pot stocks to watch are showing gains since the pandemic crushed the market in March. In addition, some of these marijuana stocks had triple-digit percentage gains for 2020. For example, Florida based Trulieve Cannabis Corp. (TCNNF Stock Report) saw over 200% gains in market value from March up to the close on November 10th. The company has also continued to exceed expectations and shows consistent growth and profitability in its earnings.
Currently in the U.S. companies like Harvest Health & Recreation Inc. (HRVSF Stock Report) are showing strength and growth at a rapid pace in the nation. To elaborate Harvest’s reported earnings showing an increase in total revenue in the 3rd quarter of 86% over the same quarter in 2019. As it stands many marijuana companies are showing increases in revenue in the states. With this in mind cannabis investors often ask themselves, which is the best cannabis stock to buy? So, this can depend on many different factors including your trading style, position length, and investment size.
Which Marijuana Stocks To Invest In?
For one, ask yourself what type of investment you want to make is it long-term, short-term, or an options trade. In general, this could help narrow down your choices as you make a marijuana stock list for 2020. In case you choose a long-term marijuana stock to invest in try and find a company that is performing well and has shown continued growth and profits. For example, Innovative Industrial Properties Inc. (IIPR Stock Report) is a company that has shown growth and profitability and the stock has shown steady gains in market value. On the other hand, if you are thinking short-term or options trading, you might want to look at a cannabis stock in 2020 with more volatility.
In general, these are marijuana stocks directly related to the cannabis plant and show more volatility than an ancillary pot stock like IIPR. In fact, in November a good example of a volatile cannabis stock to invest in is Aurora Cannabis (ACB Stock Report) which in the past couple of weeks has had big fluctuations in stock price. For this reason, this could be an option to make a swing trade or place a call or put option on ACB.
As the cannabis industry continues growing there are new cannabis companies that trade at lower stock prices. In essence, these cannabis stocks present an investor with the opportunity to establish a sizable position without as much capital. For the purpose of looking for different types of pot stocks for your 2020 watchlist let’s take a look at 2 marijuana stocks in the cannabis sector.
Cannabis Stock To Watch: TerrAscend Corp.
TerrAscend Corp. (TRSSF Stock Report) is a leading North American cannabis operator that has recently opened its 8th retail dispensary location. In detail, the new location is 3900 square-foot and is the companies 5th dispensary in California. TerrAscend’s dispensary brand Apothecarium Capitola is recognized as a premier cannabis dispensary with highly-trained consultants. Recently the company preannounced strong 3rd quarter 2020 results with net sales of $51 million a 90% increase in year over year growth. In addition, TerrAscend will hold a conference call on November 19th to further disclose earnings in 2020 as well as 2021 guidance.
TRSSF Stock has shown a steady climb since mid-year, trading today around $7.20 range in afternoon trading the stock could hold value. Provided that the company continues to post better than expected revenue this could be a candidate for your cannabis stock watchlist. With continued forward momentum this company could have a future in the U.S cannabis industry. Being that pot stocks can still hold gains into the end of the year TRSSF stock is on the radar.
Cannabis Stock To Watch: Sundial Growers Inc.
Sundial Growers Inc. (SNDL Stock Report) is a licensed producer that crafts state of the art indoor facilities for cannabis cultivation. In detail, the company uses a unique growing approach and has award-winning genetics and experienced growers. In addition, Sundial’s brand portfolio includes some cannabis consumer favorites like Top Leaf, Sundial Cannabis, Palmetto, and Grasslands. Recently Sundial announced its recent sales and distribution agreement with Choklat Inc. In the agreement, the two will launch a cannabis infused confectionery brand, with chocolate bars, infused sugars, and single-serve edibles. In fact, this would expand the company’s portfolio to include edibles.
SNDL stock has been rather active for the first two weeks of November showing gains in the market. Currently trading under the $0.40 range the stock has been prone to market volatility. Because of this, it could make a good candidate for a short-term swing trade for investors. Given that shares of Sundial are said to be undervalued this could be time to put SNDL on your watchlist.