3 Marijuana Stocks to Watch that use to be penny stocks
Canopy Growth Corp. Aurora Cannabis. And Cronos Group. These cannabis stocks should be on your watch.
Background
The legal cannabis market is expected to grow over 200% by 2022. By then, the market is expected to hit $31.3 billion, compared to the $9.5 billion market worth in 2017. With the legalisation of cannabis in Canada in 2018 and more states in the U.S voting for the same, the industry should grow as much as charged.
However, marijuana stocks in the United States had a poor start this year, with the U.S Marijuana Index falling about 20% by January. From then on, though, until May, the trend went ahead to reverse. In the same month, the index closed at about 13% outperforming the S&P by a bit.
Here are 3 Cannabis stocks that you should be on the lookout for.
Canopy Growth Corp. (NYSE: CGC)
Canopy Growth Corp. is the first Canadian cannabis company. In May 2018 it became the first cannabis producer to become listed on the New York Stock Exchange (NYSE). By April 2019, the company had become the largest publicly-traded cannabis company in the world in terms of market cap.
Operating through numerous brands one of which is Tweed, Canopy Growth is focused on the manufacturing, marketing, and distribution of both medical and recreational cannabis products. Constellation Brands, the beer and wine producer, announced in August 2018 its plans to invest an additional US$3.8 billion in Canopy Growth, thereby increasing its stake to 35%.
©TradingView. August 5, 2019.
Earlier in October 2017, Constellation Brands had acquired a 10% interest, in a deal that offered both companies the chance to develop new product lines including novel cannabis-infused drinks.
As of August 5, Canopy Growth had a market capitalisation of $11.32 billion.
Aurora Cannabis Inc., (NYSE: ACB; TSX: ACB)
Most of the world’s cannabis companies are in Canada. Most of the largest are there, too. Aurora Cannabis is another big Cannabis player. Aurora acquired MedReleaf in March in a $250 million deal that could rank as one of the biggest of its kind in the industry.
Together, production capacities would be boosted, with experts expecting over 500,000 kilograms annually in combined production. Moreover, the deal saw Aurora now boosting of at least eleven facilities — nine in Canada and two in Denmark. Indeed, Aurora’s growth strategy is largely acquisition-based.
©TradingView. August 5, 2019.
In October 2016, Aurora became listed on the TSX. Also, the company trades in the U.S on the NYSE. As of August 5, it had a market capitalisation of approximately $6.50 billion, with shares ranging over a 52-week period between $4.05 and $12.53.
Cronos Group Inc., (NYSE: CRON)
A Toronto-based producer of medical cannabis, Cronos has been expanding its operations beyond the shores of its home country. Presently, the company has facilities, in one form or another, in many international markets including Germany, Israel, and Australia. However, due to regulatory uncertainties, the U.S, as of now, is excluded.
©TradingView. August 5, 2019.
For the 2018 fiscal year, Cronos generated $7.3 million in revenue. As of August 5, the company had a market valuation of around $4.40 billion, with a stock price ranging over a 52-week period from $5.61 and $25.10.
