When looking at marijuana stocks, gains in the past few months have been difficult to come by. This stems from a variety of reasons, but most notably a looming uncertainty of the industry’s future. Many of the most popular pot stocks to watch in the past six months or so, have seen some heavy downtrends due to the aforementioned reason, in addition to a heavy amount of speculative trading. What this has left us with is a market with little to no certainty about the biggest companies in the industry.
With that in mind, some companies are worth watching as they present an opportunity to potentially get in good entry levels. This, however, should be done carefully as volatility is still very high throughout the pot stock market. With only a few big contenders to choose from, these few pot stocks may be worth researching, but they also may be worth passing on in the current state of the market.
Marijuana Stocks: The Fall From Victory
Cronos Group (CRON Stock Report) was once the cream of the crop when it comes to marijuana stocks. The company saw soaring gains for several months which attracted many investors. This, however, was swiftly followed by a large downtrend that can only be attributed to the shaky future of the market. The company has since seen losses of around 30% in this year alone. Many believe that this steep decline is not over at this point, but only time will tell.
The company has stated that it plans to move deeply into the medicinal side of the industry which has seen a large uptick in potential in the past few months. Additionally, Cronos Group has quite a lot of free cash on hand, which has not fully been used to the greatest advantage at this time. Investors are still waiting to see how well the company can capitalize upon its foreign investments. With moves being made in Europe, Israel and its home state of Canada, the company remains an interesting pot stock to watch at this point.
Marijuana Stocks: The Other Big Player
Aurora Cannabis (ACB Stock Report) is another case similar to Cronos Group. The company saw quite some large gains during the early months of the industry last year. Since that time, Aurora has seen some heavy declines of around 44% in 2019 alone. This means that investors should be very skeptical about Aurora as the company has not yet been able to produce any consistent gains.
In terms of the future, however, it does look like Aurora holds a special place at the top of the market. Additionally, it plays into the medicinal cannabis market have made it a pot stock to keep an eye on. The hopes are that Aurora Cannabis can produce some gains in the form of profitability moving into the next year or so. Only time will tell however as the company remains in a spiral moving in the wrong direction.