While investors are wondering “why are stocks down this week?”, some would see buying opportunities in the stock market now. Namely, cannabis stocks could be worth watching now. With more federal legislation backing both the medical and recreational use markets, the industry is firing on all cylinders now. Evidently, 18 states now allow for adult use of recreational marijuana while double of that passed bills legalizing medical use. Does this mean that the industry has more room to grow moving forward?
Well, investment banking firm Jefferies (NYSE: JEF) seems to believe so. Yesterday, analyst Owen Bennett initiated coverage on several cannabis companies hitting all of them with a Buy rating. Among those he covered were Cresco Labs (OTCMKTS: CRLBF), Green Thumb Industries (OTCMKTS: GTBIF), and Trulieve Cannabis (OTCMKTS: TCNNF). Notably, these stocks among others are currently looking at gains of over 170% in the past year. However, Bennett argues that some could double in value by this time next year. In his words, “We believe this is a generational wealth opportunity, with the potential average expected 12-month gains across our coverage to be over 100 percent.” Moreover, the firm currently estimates that the U.S. cannabis market could be worth $64 billion by the end of the decade.
By and large, the cannabis industry continues to gain momentum regardless of stock performance. While the broader stock market today is retreating, some top cannabis stocks could be trading at more attractive valuations. With that in mind, could one of these cannabis players be your next big investment?Best Cannabis Stocks To Buy [Or Sell] In July
- Canopy Growth Corporation (NASDAQ: CGC)
- Hexo Corporation (NYSE: HEXO)
- Curaleaf Holdings Inc. (OTCMKTS: CURLF)
Right off the bat, we will be taking a look at the Canopy Growth Corporation (CGC). In brief, CGC is a diversified cannabis and cannabinoid-based consumer product company. The company has plenty of products catering to both the recreational and medical use markets. On one hand, it markets high-quality dried flowers, infused beverages, edibles, and even vaporizer devices for adult use. On the other hand, CGC also operates via its global medical marijuana brand, Spectrum Therapeutics. Through Spectrum, the company sells a range of medical cannabis products such as soft gels, THC oils, and CBD oils. By CGC’s estimates, Spectrum is a market leader in both the Canadian and German medical weed industries.
Given its impressive portfolio, I can understand if investors are keen on CGC stock right now. Despite all of this, the company’s shares are trading at a loss year-to-date. Regardless, CGC continues to bolster and expand its services. Just last month the company completed its acquisition of The Supreme Cannabis Company (Supreme). Now, to highlight, the acquisition would give CGC access to Supreme’s global diversified medical cannabis portfolio. Additionally, CGC would also be acquiring Supreme’s low-cost, scalable cultivation facility in Kincardine, Ontario. Safe to say, this is a major play by CGC on the operational front.
Overall, David Klein, CEO of CGC believes that the move serves to strengthen CGC’s leadership position in the Canadian recreational cannabis market. He cites the addition of Supreme’s premium product brand 7ACRES as a core growth driver for CGC’s premium product segment. All things considered, will you be adding CGC stock to your portfolio?Source: TD Ameritrade TOS
Read MoreHexo Corporation
Following that, we have an award-winning licensed producer of innovative products for the global cannabis market, the Hexo Corporation. Similar to our previous entry, Hexo also boasts significant operations in both the adult-use and medical cannabis markets now. On the consumer front, it works through its HEXO, UP Cannabis, Namaste, and REUP brands among others. Regarding its medical consumption business, Hexo mainly serves the Canadian, Israeli, and Malta markets. Not to mention, it is also catering to the Colorado market via a joint-venture operation with Molson Coors (NYSE: TAP). This venture primarily markets its wares via the high-quality Powered by HEXO brand.
As of Thursday’s closing bell, HEXO stock is looking at year-to-date gains of over 26%. Could it have more room to grow moving forward? If anything, the company is hard at work growing its presence in the U.S. market now. Last week, Hexo announced the successful purchase of its first U.S. production facility. In detail, it now owns a 50,000 square feet facility in Fort Collins, Colorado. This would be a smart move on Hexo’s part. Accordingly, the strategically located facility would further support its current and future U.S. operations. Specifically, Hexo also notes that the facility is fit to produce its full range of cannabis products and offers a variety of operational capabilities.
Furthermore, this move follows its recent acquisition of Zenabis Global Inc., a Canada-based cultivator of medical and recreational cannabis. All in all, Hexo appears to be kicking into high gear across the board. Given the current momentum of the company, would you consider HEXO stock a top buy now?Source: TD Ameritrade TOS Curaleaf Holdings Inc.
Another top name in the cannabis industry to know now would be Curaleaf Holdings Inc. For starters, the company produces and distributes cannabis throughout the North American region while operating dispensaries in over 20 states. At the same time, Curaleaf also boasts a massive supply and distribution network in Europe under its Curaleaf International division. In fact, it is the largest vertically integrated cannabis company in the European market now. All of this adds up to make Curaleaf a leading international provider of consumer cannabis products. Now, with CURLF stock looking at gains of over 130% in the past year, could it have more room to run moving forward?
While that remains to be seen, Curaleaf is clearly not sitting idly by. This is evident seeing as the company provided two major operational updates this week. Firstly, as of Tuesday, Curaleaf is now collaborating with the Agrify Corporation (NASDAQ: AGFY). The duo is now part of a long-term research and development partnership, investigating means of refining growing techniques. Given Agrify’s experience as a developer of premium cannabis growing solutions, this seems to be a win for Curaleaf. CEO Joseph Bayern sums it up best, “we believe this research will help to further increase understanding of the conditions required to optimize a plant’s genetic potential.”
Secondly, the company’s Curaleaf International unit is also making waves in the Israeli market now. As of yesterday, it has exported over one metric ton of medical cannabis to BOL Pharma in Israel. To explain, BOL is among the first licensed medical cannabis cultivators in the region. Given the current strong partnership between the two, Curaleaf’s presence in the Israeli market would be notable now. As Curaleaf seeks to improve its business on several fronts, will you be investing in CURLF stock?Source: TD Ameritrade TOS