As more states legalize medicinal and recreational marijuana use, marijuana stocks have become increasingly popular among investors. Considering the growth of this industry, investors should consider adding a few of these top marijuana stocks to their portfolio.
Green Thumb Industries Inc
Based in Chicago, Green Thumb Industries is a producer and distributor of both medical and recreational marijuana. As of April 2020, they operate 44 stores in 12 states and are adding more.
This expansion of stores has certainly benefited their bottom line. Their first quarter 2020 revenue grew by 54% over the previous quarter bringing in $102.6 million for the quarter. This is an incredible 268% increase over Q1 2019. This revenue growth ensures that the company will continue to have the money for further expansion of its stores.
Trulieve Cannabis has so far focused the attention on the state of Florida with 53 dispensaries in the state. They are beginning to expand into other states, opening stores in California, Connecticut, and Massachusetts.
The first quarter of 2020 saw their revenue increase by 21% over the previous quarter to $96.1 million. This was their best quarterly amount. Unlike many other marijuana companies, they have to capital for continued growth.
In addition to adding more stores and expanding outside of Florida, they are also releasing new products, including three new medical marijuana products. As of this time, they have 51% of Florida’s medical marijuana market. Florida could soon legalize recreational marijuana use, which could increase Trulieve’s revenue.
Based in Toronto, Cronos Group invests in medical marijuana producers like Whistler Medical Marijuana and Peace Naturals. One reason Cronos is one of the best marijuana stocks is because of its diversification in medical marijuana.
Cronos manufactures and sells medical marijuana with their Peace Natural brand. They also sell recreational marijuana under their Cove and Spinach brands. To add to their diversification, they sell CBD products under their Lord Jones and Peace brands.
Even though much of their revenue comes from Canadian outlets, they are starting to expand into the United States. They earned $8.4 million in revenue during the first quarter of 2020, which is a year-over-year increase of $5.4 million.
Canopy Growth Corporation
In business since 2013, this Canadian company is one of the best cannabis companies. They got a major boost in 2017 when Constellation Brands, sellers of Corona and Modelo beer, took a 9.9% position in the company.
At this time, they have 50 storefront locations throughout Canada, and they have the second-highest share of Canada’s medical marijuana market. They own Tweed, one of the most recognizable names in the recreational marijuana industry.
They ended their fiscal year 2020 with 76% revenue growth, bringing in $399 million. As they continue to add more production capacity and the possibility of legalized marijuana at the federal level in the United States, Bank of America analysts give them a buy rating.
Based in Leamington, Ontario, Aphria Inc sells both recreational and medical marijuana products. They own well-known brands such as RIFF, Broken Coast, Good Supply, and Solei, which are some of the better-known brands in the cannabis industry.
Aphria Inc. has had four consecutive quarters of positive operating earnings, and the company’s revenues continue to grow. They reported Q3 2020 revenue as $144.4 million, which is 68% higher than the previous quarter, and 96% higher than the previous year.
GW Pharmaceuticals makes the drug Epidiolex, which is used to treat seizures in some epilepsy patients. Today, it is the only FDA approved cannabis-based treatment for use in the United States.
Epidiolex generated revenue of $116.1 million in the first quarter of 2020, with $106.1 million of that coming from the US market. The company expects to get approval for Epidiolex in other countries that include the United Kingdom, France, and Germany. In addition, the FDA could approve Epidiolex for the treatment of tuberous sclerosis complex, which will further increase their revenue.
The consumer market for marijuana products is growing. According to the experts at Money Morning, “…we can expect the global marijuana market to reach $32 billion by 2022.” These top marijuana stocks should be considered by anyone interested in growth stocks during the next year and possibly for years to come. Not only are the laws changing, but discoveries in the health benefits of CBD and medical marijuana could make this one of the hottest stock market sectors.