Canopy Growth. Tilray. Aurora Cannabis. Cronos Group. These are 4 marijuana stocks to watch, buy, and hold.
There are companies that sell marijuana for both medicinal and recreational use. There are those that specialise in either. However, no matter which of the two a marijuana company decides to stick to, one thing is sure: the industry, overall, is bound to grow.
Marijuana, otherwise known as pot, has been gaining increasing acceptance. In 2018, Canada legalized its use for recreational use. And presently, a substantial number of states in the U.S. too have okayed its recreational use. Here is a page you can check out marijuana penny stocks
As a result, investors have been ramping up their interest as those pot companies continue to explode in worth and overcome regulatory barriers.
Hence, here are four marijuana stocks that are poised for long-term growth and which you can buy and hold.
Canopy Growth Corp. (NYSE: CGC)
It is no accident that the largest cannabis companies in the world are Canadian. And one of those is Canopy Growth Corp. The cannabis producer, although mainly focused on the Canadian market, has been expanding abroad.
And that means more growth. A notable instance of this is the company’s recent conditional buyout of Acreage Holdings, leading to an expansion of its production capacities, a move that will open the massive U.S. market for it.
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With this solid position for growth, it is no wonder that this stock is an analysts’ favourite. Canopy Growth currently has a market capitalisation of approximately $9.5 billion.
Tilray (Nasdaq: TLRY)
Another Canadian cannabis producer, Tilray is one of the giants of the domestic market. The company also has a further advantage: it has entered the potentially huge U.S. cannabidiol market.
Initially totally invested in medicinal cannabis alone, the company ventured into the recreational cannabis space when the substance became legalised in Canada in 2018. Now, recreational cannabis sales account for roughly 90% of its revenue.
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Tilray recently signed a deal with the alcohol giant Anheuser Busch Inbev (BUD) towards the production of cannabidiol-infused beverages. Plus, its partnership with Authentic Brands, another beverage company, is definitely a boon for its U.S. market objectives.
Aurora Cannabis (NYSE: ACB)
The second-largest cannabis producer in Canada in terms of cultivation capacity, Aurora, however, currently has no exposure to the U.S market. Instead, the company has been looking at Europe for its fertile grounds.
Hence, presently, it has operations in Denmark, Portugal, and Uruguay. Now, add to these its partnerships with three leading Canadian pharmacy chains plus its intensive focus on efficient cultivation.
Even though Aurora is a giant at home, a large U.S. partnership will be a further significant catalyst for growth.
Cronos Group (Nasdaq: CRON)
Based in Ontario, Cronos is another Canadian cannabis supplier. Last year, the company made the news when the tobacco giant, Altria, invested $1.8 billion in it.
The deal ensured that Cronos would be able to get capital and marketing experience to boost its operations and increase revenues. Another benefit of the deal is the opportunity for Cronos to leverage Altria’s already-established brand.
The deal could also lead to a total buyout. And with its projected compound annual growth of 31% over the next 10 years, this is the best time to pick the stock so as to benefit from maximal growth.