By Sonali Pathak
Cannabis stocks are one of the most active stocks in 2021. It is believed that the cannabis industry will see a growth of $300 billion by 2030. And, after a slew of legislation flooding in since the November elections, many companies are posting massive growth. In this article, we’ll help you take a closer look at the best cannabis stocks investment option in 2021.
Though the first few months of this year weren't great for stock market investors, it has recently witnessed some staggering results. 2021 has been like a ray of hope for cannabis investors. While cannabis stocks go through rough patches, you still can’t ignore their potential when they are on the run. At times, cannabis stock can catch fire and be the best performing tour de force. They can double or triple their performance in a short period.
And, this period has been favorable for investors who have been waiting for a surge in cannabis stocks since 2017. The euphoria of investors is fueled by various U.S. and Canadian governments moving toward the legalization of cannabis. According to the latest report, as many as 29 U.S. states have legalized medical weed, and nine states & Washington, D.C. have made it legal to use recreational marijuana.
That’s very encouraging news for cannabis stocks investors.
In 2018, Canada legalized adult use of cannabis, and since then, cannabis stocks have been making astonishing profits. With all that happening around, unquestionably, an entirely new revenue-driven market has been emerging for cannabis stocks investors. The profit for many cannabis companies has been increasing manifold, and it looks like the trend is going to stay. Cannabis stocks have brought tremendous profits to the U.S. economy growing around 46% every year. Top analysts predict that the cannabis stock sale is expected to reach $92 billion in the upcoming months in 2021. And, as per a report by MJBizFactbook, this data will reach $160 billion in 2025.
For intelligent investors, cannabis stocks have always been a beneficial & viable option. If you look back, the marijuana industry did not exist, yet people have been growing and using marijuana (not legally). But with more and more people supporting the use of cannabis, legalization has been gaining momentum in different parts of the world. Though challenges remain, you will get through some real profits if you are willing to take the risk. In this article, we’ve brought you some of the most profitable cannabis stocks in 2021. Let’s see them:
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Cresco Labs has 32 dispensaries, 44 retail licenses, and 18 production facilities— spread through 10 states. It is based in Chicago and has been growing year after year in almost all markets. Last December, the company acquired Bluma Wellness in Florida, and that was a smart move by Cresco Labs. In May, the company posted a staggering sales growth. There are many reasons why Cresco is unique compared to other multistate operators (MSO) in America.
Firstly, the company has been spreading its strong presence across different states in the country. It is building a brand identity, which unquestionably means an inflow of loyal followers. Secondly, unlike many other MSOs, the company has been involved in wholesale cannabis. According to a report, this March, Cresco Labs generated $95.6 million in wholesale revenue of its $178.4 million in net sales. Analysts predict that by 2021 end, the company will generate $1 billion in annual run-rate revenue. These strong growth prospects & valuation of the CRLBF stocks make it one of the best options for cannabis investors at this moment.
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Altria Group is one of the largest producers of cigarettes, chewing tobacco, cigars, e-cigarettes, and wine. The American conglomerate is headquartered in an unincorporated part of Henrico County, Virginia. Its operation is spread throughout the world and is the parent company of Philip Morris USA, U.S. Smokeless Tobacco Company, Inc., Chateau Ste. Michelle Wine Estates and John Middleton. The company also has a 10% equity stake in Anheuser-Busch InBev, a 45% stake in the marijuana company Cronos Group, and a 35% stake in e-cigarette maker JUUL.
Altria Group comprises the best management team and has a strong demand for its products, making it one of the best choices for investors seeking secure dividend income. Analysts expect an adjusted diluted EPS for the company anywhere between $4.49 to $4.62 in the 2021 fiscal year. Since January, the Altria Group shares have advanced to over 20%, and the trend will continue for some time. Altria has established itself in the market and will be a great choice for investors (especially in the upcoming months & years).
GW Pharmaceuticals is a leading producer of plant-derived cannabinoid therapeutics. It’s known for its world-class drug discovery and development processes, manufacturing expertise, and intellectual property portfolio. It has developed several intellectual property portfolios, including nabiximols, which was the first cannabis plant derivative to receive approval in the market. With a strong portfolio and a stronghold on the market for quite a long time, GW Pharmaceuticals undoubtedly offers an exciting way to get involved in the market.
The company isn’t involved in growing cannabis or catering to the use of cannabis by adults— so you see how it bypasses the debate over legalization of cannabis. Instead, GW Pharmaceuticals is working to bring the medical uses of cannabis to the next level. With so many clinical development programs in the present and past (Epidiolex and Sativex, to name a few), for GW Pharmaceuticals, the profits are growing at breakneck speed— and it’s the right time for investors to jump in and make the right move.
Many reasons make cannabis stocks an excellent choice for you. The first being the high demand by consumers. Second, the cannabis products are low in tetrahydrocannabinol (THC) and high in cannabidiol (CBD). They are quite effective in curing depression and anxiety. The US is also moving towards legalizing cannabis— decriminalization will make it a great deal for investors. But always keep in mind before investing that — besides the upswing we will see after the legalization, the cannabis stocks are also quite riskier as compared to other sectors of the market.
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