Jul 20, 2021 (StockMarket.com via COMTEX) -- Best Marijuana Stocks to Watch As Markets Rebound
While tech billionaires are aiming for newer heights in the space travel front, investors and consumers alike seem to be looking towards a different kind of high. Namely, cannabis stocks are a hot topic in the stock market right now. For the most part, I can understand the hype around the sector now. As most seasoned investors would know, federal support for the decriminalization of cannabis is steadily growing in the U.S. Accordingly, this would spur investor interest in the top marijuana stocks in the stock market today.
The most recent indication of this would be Senate Majority Leader Chuck Schumer's latest proposed legislation. If anything, the Cannabis Administration and Opportunity Act aim to fully decriminalize cannabis in the U.S. In fact, even the U.S. Surgeon General Vivek Murthy recently endorsed the draft bill, saying, "I don't think that there is value to individuals or to society to lock people up for marijuana use". Adding to that, Murthy also argues that science should be the guiding principle when it comes to legislation surrounding marijuana. Overall, the current field of research supporting the benefits of cannabis use would support Murthy's endorsement.
Naturally, all this would put some of the top names in the industry in focus now. In theory, companies such as Tilray ( NASDAQ: TLRY ) and Cronos ( NASDAQ: CRON ) could see their addressable markets expand significantly. Even now, TLRY stock is already looking at gains of over 45% year-to-date. All in all, some would argue that now is a good time to keep an eye on top marijuana stocks. Should you agree with this, here are four to consider now.
Best Marijuana Stocks To Buy [Or Sell] This Week
High Tide Inc. ( NASDAQ: HITI )
Innovative Industrial Properties Inc. ( NYSE: IIPR )
Canopy Growth Corporation ( NASDAQ: CGC )
GrowGeneration Corporation ( NASDAQ: GRWG )
High Tide Inc.
High Tide is a leading marijuana company that operates across Canada, Europe, and the U.S. Its portfolio companies include a dominant Canadian cannabis retail chain, a global manufacturer, and a distributor of cutting-edge smoking accessories. It also has one of the largest accessories e-commerce platforms in the world for marijuana products. HITI stock currently trades at $6.21 a share as of Tuesday's close and has been up by over 200% in the past year. Today, the company announced an exciting piece of news that has gotten the attention of investors.
Diving in, High Tide announced that it has entered into a definitive agreement to acquire leading online retailer DankStop. By acquiring this top e-commerce platform, the company's portfolio will include 3 out of the top 5 most popular e-commerce platforms for consumption accessories.
Also, it boasts almost 100 million site visits across all its platforms in 2020. With that, High Tide will be able to continue its rapid expansion into the U.S. By being a vertically integrated company in the consumption accessories space and having access to the end-user will continue to result in high margin sales across all the company's channels. Given all of this, will you consider buying HITI stock?
Innovative Industrial Properties Inc.
Innovative Industrial Properties is a weed company that targets medical-use cannabis facilities for acquisition. This would include sale-leaseback transactions, with tenants that are licensed growers under long-term, triple-net leases. Furthermore, the company says it believes that this industry is poised for significant growth in the coming years. Shares of IIPR stock closed Tuesday's trading session at $207.99 apiece. The company will report its second-quarter financials after the market closes on Wednesday, August 4, 2021. Last month, the company declared a second-quarter dividend of $1.40 per share of common stock. This represents an approximately 32% increase year-over-year. In May, the company announced that it had acquired a Michigan property, comprising approximately 85,000 square feet of industrial space.
The purchase price for the property was approximately $10.3 million. It also entered into a long-term, triple-net lease at the property with a subsidiary of Sozo Companies for continued use as a regulated cannabis cultivation, processing, and retail facility. Sozo is expected to complete additional tenant improvements for the property.
"We are excited to welcome Sozo as the newest addition to our premier tenant roster," said Paul Smithers, President and Chief Executive Officer of IIP. "Aaron and his team at Sozo have created a strong operational platform in Michigan, and we expect this strategic transaction to unlock key capital for the Sozo team to significantly enhance their retail presence in the state, along with additional capital for the facility to drive cannabis production capacity." For these reasons, will you consider adding IIPR stock to your portfolio?
Canopy Growth Corporation
The Canopy Growth Corporation is a cannabis company that is based in Ontario, Canada. The company is a global diversified cannabis and cannabinoid-based consumer product company. The company leverages consumer insights and innovation and it offers a wide variety of products. Namely, this would include high-quality dried flowers, oil, softgel capsules, and infused beverages among others. Canopy also has a global medical brand known as Spectrum Therapeutics.
Last month, the company announced that it had completed the acquisition of The Supreme Cannabis Company. As Canopy continues to focus on the premium flower segment, the addition of Supreme's products and manufacturing capabilities will enhance Canopy's leading market share position and supplement its production capacity.
The company also reported impressive fourth quarter and fiscal year 2021 financial results. Notably, it achieved 37% revenue growth for the fiscal year with strong-double digit growth across both its cannabis and other consumer products businesses. With that in mind, would you watch CGC stock?
Topping off our list of top marijuana stocks today is the GrowGeneration Corporation. In brief, the company is the largest hydroponics supplier in the U.S. now. How is this relevant to marijuana? Well, for the uninitiated, the company basically sells the equipment needed to cultivate and nurture marijuana plants. As such, this would make GRWG stock a literal and metaphorical pick-and-shovel play on the booming weed industry. For a sense of scale, GrowGeneration currently operates out of over 55 retail and distribution centers nationwide. Given the current scale of the company's operations, would GRWG stock be a wide investment?
If anything, investors appear to be keen on GrowGeneration's current long-term potential. Evidently, the company's shares are now sitting on gains of over 420% in the past year. Despite all of this, GrowGeneration does not seem to be slowing down anytime soon.
Earlier today, the company acquired Aqua Serene, one of Oregon's largest garden centers. Given that Oregon is the fourth-largest legal cannabis market in the U.S., this is a smart play by GrowGeneration. With GrowGeneration strategically expanding its portfolio in the emerging U.S. market, would GRWG stock be a top buy for you?
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