what is the best weed stock to buy in canada
Investing in Marijuana Stocks
The marijuana industry is expected to double in value by 2025, and many investors are seeking to profit. As states and entire countries decriminalize or legalize cannabis and/or its components, there are growing opportunities for entrepreneurs and existing companies.
Merely, equally in whatever nascent industry, there are also plenty of investment risks. Whether you lot're a kickoff-time investor or a seasoned veteran, it pays to understand how this manufacture works. This guide will go you upwards to speed speedily and includes our picks for the top marijuana stocks.
Best marijuana stocks in 2022
| Visitor | Description |
|---|---|
| Green Thumb Industries (OTC:GTBIF) | Marijuana grower and retailer |
| Trulieve Cannabis (OTC:TCNNF) | Marijuana grower and retailer |
| Innovative Industrial Properties (NYSE:IIPR) | Ancillary provider |
| GrowGeneration (NASDAQ:GRWG) | Ancillary provider |
| Scotts Miracle-Gro (NYSE:SMG) | Coincident provider |
| Jazz Pharmaceuticals (NASDAQ:JAZZ) | Biotech |
Source: Business Wire
1. Green Thumb Industries
Green Thumb Industries (OTC:GTBIF)owns retail cannabis stores in 12 states beyond the U.S. and operates 13 manufacturing facilities. Green Thumb holds licenses for 96 retail cannabis locations but has opened only a niggling over half that many stores.
With the legal recreational marijuana market place in Illinois opening for business at the beginning of 2020, this company is benefiting from tremendous growth in its home state. Forth with the opportunity to expand into additional states such every bit New York and New Jersey, the company has significant growth potential.
2. Trulieve Cannabis
Trulieve Cannabis (OTC:TCNNF) is a cannabis grower and retailer that focuses primarily on the Florida medical marijuana market. The visitor dominates in the Sunshine Land past accounting for nigh 50% of total cannabis sales and has been consistently profitable since 2017 -- an achievement few other marijuana companies can claim. Its sales and earnings also continue to soar.
Trulieve plans to acquire Harvest Health & Recreation (OTC:HRVSF) in a deal that will boost its presence in several other states and arrive the most profitable multi-state marijuana business in the country.
iii. Innovative Industrial Properties
U.Due south. cannabis companies can't easily secure capital from banks or financial institutions since marijuana remains illegal at the federal level. Innovative Industrial Properties (NYSE:IIPR) helps to solve that cash shortage for growing marijuana companies by buying properties owned by U.S. medical cannabis operators and leasing those same properties back to them. The property sale to IIP provides the cannabis operator with much-needed cash, and the lease agreements create a steady revenue stream for IIP.
The COVID-19 pandemic disrupted IIP's concern somewhat, with three tenants receiving temporary rent deferrals. The ancillary company has all the same grown phenomenally during the pandemic and is highly profitable. Because the company is organized as a real estate investment trust (REIT), IIP returns at least xc% of its taxable income to shareholders.
4. GrowGeneration
GrowGeneration (NASDAQ:GRWG) is another coincident provider and the largest specialty retail concatenation focused on the cannabis market. The booming U.Southward. cannabis manufacture has created fast-growing demand for hydroponics supplies, which are used to grow plants in liquid nutrient solutions without soil and for organic gardening.
While much of GrowGeneration's business organisation caters to cannabis growers, the company as well sells to other types of gardeners. GrowGeneration has benefitted from the COVID-19 pandemic due to the surge in customers pursuing organic gardening at home.
5. Scotts Miracle-Gro
Scotts Miracle-Gro (NYSE:SMG) is some other visitor benefiting from the aforementioned trends that accept additional GrowGeneration's sales. The company'due south Hawthorne Gardening subsidiary ranks as a leading supplier of hydroponic gardening products to the cannabis industry.
Although Hawthorne is the primary growth commuter for Scotts, the company still makes well over half of its total revenue from sales of its consumer lawn and garden products. This business has also benefited from the COVID-19 pandemic.
half dozen. Jazz Pharmaceuticals
Jazz Pharmaceuticals (NASDAQ:JAZZ) acquired the cannabis-focused biotech company GW Pharmaceuticals in May 2021. GW's drug Epidiolex is the kickoff cannabis-based medicine to exist approved by the U.Southward. Nutrient and Drug Assistants (FDA). Epidiolex, which treats two rare forms of childhood epilepsy, is generating sales that are routinely surpassing expectations. While new patient starts for Epidiolex slowed slightly with the COVID-19 pandemic, the company has continued to deliver potent revenue growth.
The FDA also canonical Epidiolex in August 2020 to treat tuberous sclerosis complex (TSC), a rare organ illness. This approval opens up a pregnant new market for Epidiolex since around 50,000 people in the U.S. and roughly 1 million people worldwide have the affliction.
A brief overview of the marijuana industry
Start, let's cover some of the basics yous demand to know before investing in marijuana stocks:
- The marijuana manufacture is divided into three broad categories: Marijuana growers and retailers cultivate and package cannabis products and sell them to consumers. Biotechnology companies develop and marketplace cannabis-based pharmaceutical drugs. Ancillary marijuana businesses provide products and services to cannabis companies without touching the plant.
- Cannabis can be medical or recreational: Medical cannabis patients utilize cannabis or cannabis extracts to care for health conditions and accept recommendations or cannabis prescriptions from physicians. Recreational cannabis users buy marijuana or cannabis extracts purely for enjoyment and must be historic period xviii and older and living in a jurisdiction where recreational employ of the institute is legal.
- Geography matters: Medical cannabis is legal in many more countries than recreational cannabis. In the U.S., cannabis remains illegal at the federal level. Nevertheless, a growing number of states accept legalized medical and/or recreational cannabis. The rapid growth of the U.S. cannabis market is translating into impressive growth by U.S.-based cannabis companies, while marijuana companies in Canada -- where the plant is already fully legal nationwide -- are expanding more slowly. Canada is one of the global legal markets where supply is outpacing demand and leading to falling cannabis prices.
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Impact of COVID-19 on marijuana stocks
The COVID-19 pandemic has affected nearly every part of the global economic system, including the cannabis industry. In many U.South. states, cannabis dispensaries were designated as essential businesses. Cannabis sales boomed in some states during the commencement few months of the coronavirus outbreak, driven in office by more time spent at home and increased feet. Marijuana growers and retailers benefited, every bit did ancillary providers selling gardening supplies and other products to these companies.
However, not all cannabis companies take fared well in the pandemic. Recreational cannabis retailers in tourist destinations such every bit Las Vegas saw their customer traffic dwindle, causing some of these dispensaries to start focusing on home commitment. In the medical segment, people delayed medico visits, causing new patient starts to drop. Biotech companies experienced logistical challenges that affected sales and inquiry progress.
Many U.Southward. cannabis companies appear to be performing well in the wake of the COVID-xix pandemic. However, several Canadian marijuana companies continue to face headwinds, with restrictions on retail cannabis stores yet in identify.
Related topics
Pharmaceutical stocks
This huge industry holds opportunities for long-term investors, simply there are risks too.
Biotech stocks
Scientific advances are opening up new possibilities for the treatment and prevention of diseases.
Healthcare stocks
Healthcare is a growing industry, and cannabis investors may benefit from getting acquainted with it.
Consumer Staples stocks
Learn nigh other stocks in this sector and how consumer staples have traditionally performed.
But, Actually, Should I Buy Marijuana Stocks?
Just because there'south a trendy new sector with lots of press and potential growth doesn't mean you need to invest in it. If you lot buy broad-based index funds, you're covered no affair which sectors of the stock market exercise well. Conservative investors who prefer lower risk are probable better off avoiding investing in marijuana stocks.
But aggressive investors with loftier risk tolerances volition probably detect a lot to like about marijuana stocks. The cannabis manufacture is however in its early stages, and the market opportunities are enormous, especially as more U.S. states legalize cannabis. Investing in pot stocks is a loftier-take a chance merely potentially high-reward proposition.
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Source: https://www.fool.com/investing/stock-market/market-sectors/healthcare/marijuana-stocks/
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