How Is The Cannabis Industry Continuing To Bring In The Bulls
If we look at the average for marijuana stock growth, cannabis stocks have shot up by around 80% from their mid-March lows. Although they are down from the high they hit last year, investors are beginning to take notice of some key marijuana stocks. As we all know, the cannabis industry is notoriously volatile. This volatility shows itself in the massive ebbs and flows we see in leading pot stock prices. Only a few months ago, certain marijuana stocks to watch began to recover from their coronavirus stricken lows. Although we are in no way out of the woods, investors do seem to be trading bullishly once more.
This is not to say that all marijuana stocks are good choices for investing because that would simply be untrue. Rather, there are a large number of very interesting pot stocks to watch that could just have some upward momentum left to give. Recently, we have begun to see more bullish trading in the cannabis industry. Analysts and investors alike have continued to see the large potential across many popular pot stocks. And if you’re skeptical of that, here are some reasons why top investors are being bullish about marijuana stocks.
Demand for Cannabis Continues to Push Marijuana Stock Earnings
Major marijuana stocks like Canopy Growth Corp. (CGC Stock Report) and Aphria Inc. (APHA Stock Report), are dependent on high demand for their products. Recent data has shown that the demand for marijuana has shot up dramatically in the past few months. In Oregon, data shows that compared to last year, demand for marijuana is up by as much as 90%. In the first five months of the year alone, sales shot up by as much as 51%. Other markets like Florida have shot up by similar numbers as a whole. What’s really interesting however is how this growth is occurring.
Studies have shown that the demand for cannabis products (anything non-flower related), has shot up by as much as 70% in the past year. Demand for raw cannabis flower, on the other hand, has grown by as much as four times. This massive demand increase continues to be reflected in the numbers of some of the most prominent marijuana stocks to watch. Although this could be an anomaly due to the coronavirus, it stands that demand is high, and may continue to rise. While many factors like new laws, stay-at-home orders, and more have contributed to this, analysts believe that demand could continue to go up.
The Changing Laws for the Cannabis Industry
Growth in the cannabis industry and for marijuana stocks is highly predicated on the need for pro-cannabis legislation. With 2020 being an election year, some analysts believe that more states could legalize cannabis by the end of the year. On the other hand, Covid has taken charge, and could rightfully distract from new laws being made. But, it remains that there are a lot of states looking to add cannabis laws to their ballots.
During this pandemic, a large portion of states deemed cannabis to be an essential business. This has helped to stress just how crucial the cannabis industry is to the U.S. Although this is not alone a reason for marijuana stocks to go up or the cannabis industry to grow, it does show the importance of marijuana in the nation. While the timeframe of legislation may be contested, nobody is arguing that more laws won’t go into place. Because of that, it looks like the cannabis industry in the U.S. is due for a lot more growth down the line.
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