What are the best marijuana stocks in 2020? We’ve assembled a comprehensive list of the best marijuana stocks to consider in 2020 and the subsequent years. Cannabis and hemp stocks are a hot commodity and are now available through a traditional brokerage, but like any stock, they don’t come without risk.
In 2020, the cannabis market has many developments that could stall or drive the marijuana stock market. From expansion in Canada and the Cannabis 2.0 market to the U.S. elections, certain events must be closely looked at that could affect marijuana stocks. We’ll give you the winning odds on marijuana stocks set to take off.
How To Invest In American And Canadian Marijuana Stocks
Before you start pouring your money into the cannabis stock market game, it’s important to understand the state of cannabis stocks. The worldwide cannabis industry is on the rise, especially in North and Latin America. Investors can invest in a variety of medical and recreational cannabis stocks that offer different types of cannabis-related products or services.
From marijuana growers to cannabis-focused biotech companies to ancillary providers that are crucial to the cannabis industry, there’s a lot of potential and risk for cannabis investors. Much of the success of cannabis stocks hinges on the success of legalization in the United States. After recreational cannabis became legal in October 2018 in Canada, Canada has also been a source of promising pot stocks.
In order to bypass the risks of investing in cannabis, investors must know what to look for in a cannabis stock. Similar to buying any other stock, potential investors must research the management team, analyze the company’s growth and position among its peers, and consider its financial position. Other nuanced considerations must be taken to vet different cannabis companies.
Despite the regulatory hurdles, onerous taxes, product shortages, and other growing pains suffered across cannabis markets, the cannabis and hemp industries have a clear path to growth and legalization in the U.S. in the near future. Some of these problems can be overcome, which would make early stock investments pay off.
Aphria (NYSE:APHA) is seeing considerable gains in a tough cannabis market and volatile atmosphere. Over the past year, Aphria has reported multiple successful quarters. Aphria also owns German distribution subsidiary CC Pharma, which distributes medical marijuana in Germany. Aphria’s contract is to produce one ton of marijuana per year for Germany.
Aphria also has a South American presence that has made strides in the first half of fiscal 2020. Aphria is intent on expanding to other parts of Europe and Latin America as well. As one of the few cannabis companies who trade on the New York Stock Exchange, Aphria is a hot buy despite slight dips in the stock market.
Canadian cannabis producer Cronos Group’s (CRON) is not short on cash to fund its expansion and alleviate its growing pains. A historic $1.8 billion investment from tobacco company Altria Group in 2018 puts Cronos in a comfortable and competitive space to move into the U.S. CBD market. Cronos Group’s influence in international markets also makes them poised for success.
Green Thumb Industries
Chicago-based Green Thumb Industries (OTC:GTBIF) owns 13 manufacturing facilities and licenses 96 retail locations and operations across 12 legal states including California and Florida, two of the biggest markets in the nation. GTI’s Illinois and Nevada acquisitions have also propelled GTI’s revenue and presence as a pivotal multi-state cannabis operator.
American multi-state operator Cresco Labs (OTC:CRLBF) has operations in New York, Arizona, Ohio, Illinois, Pennsylvania, Nevada, and Massachusetts. Cresco’s acquisition of Origin House in January 2020, which operates six licensed facilities in California, makes Cresco one of the top cannabis stock options in 2020.
Analysts estimate Cresco to reach $1 billion in earnings by 2022. Cresco’s success is dependent on being the first to market in the most profitable states. With a heightened presence in Illinois, for instance, Cresco could exceed investors’ estimates of revenue.
Curaleaf Holdings (OTC:CURLF) has been a recent darling among pot stock investors. As a vertically-integrated cannabis company, Curaleaf handles everything from seed to sale. They’re one of the biggest multistate operators in the country with 53 dispensaries, 15 cultivation farms, and 24 processing facilities across 14 states.
Even more importantly, Curaleaf is closer than ever to acquiring privately-held Grassroots, the largest vertically-integrated multi-state operator. The acquisition would make Curaleaf the world’s largest marijuana company in all practical sense. Curaleaf has also recently acquired high-end edibles maker BlueKudu, that makes both medical and recreational products.
Innovative Industrial Properties
Innovative Industrial Properties (NYSE:IIPR) is a marijuana-centric real estate investment trust that has seen considerable gains at the start of 2020. As of March 2020, its shares are up about 23 percent. IIP has knocked it out of the park in terms of acquiring medical marijuana operators’ facilities and leasing them back to dispensaries.
IIP owns about 51 properties across 15 states and nearly every single one of them is leased on a long-term contract averaging about 15 years. As more states seek to legalize medical marijuana, IIP is set to repeat their winning business model across the country.
Flower One Holdings
Toronto-based Flower One Holdings (OTC:FLOOF) is Nevada’s leading medical and recreational cannabis producer and cultivator. In September 2019, they opened up a 55,000-square-foot extraction and production facility next to their 400,000-square-foot greenhouse.
In November 2019, Flower One announced a brand partnership with California-based Kiva Confections to distribute their high-end and award-winning cannabis confections to Nevada dispensaries. Kiva produces many of the best-selling marijuana edibles in California.
Florida-based Greenlane Holdings (NASDAQ:GNLN) produces marijuana accessories, as well as CBD and liquid nicotine products sold at 11,000 retail locations including dispensaries. Greenlane has also acquired Conscious Wholesale, a European wholesaler and retailer, to expand its operations and revenue overseas.
Trulieve Cannabis Corp
Trulieve Cannabis Corp (OTC:TCNNF) is Florida’s leading vertically-integrated medical cannabis company. Trulieve has successfully captured half of Florida’s bustling medical marijuana market, the third most populous in the country. With over 320 products and a network of dispensaries and delivery services, Trulieve is meeting the increasing patient demand.
Trulieve operates 45 dispensaries in Florida with more to come. They’ve got their sights on more than just the Florida market. They’ve purchased licensed in California, Massachusetts, and Connecticut to expand in 2020. Trulieve’s stock is a must-watch for those with a finger on the pulse of America’s legal cannabis markets.
Canopy Growth (NYSE:CGC) has seen notable profit when many of its peers have seen losses. Although it’s suffered many of the same obstacles other Canadian producers have, Canopy Growth’s future is bright. Ontario is set to license new shops. A pending cannabis-infused beverage line will also be a welcome new product option for consumers.
Canopy Growth has also introduced its first hemp-derived CBD products in the U.S. with more to come in 2020. More importantly, Canopy Growth has a deal to acquire U.S.-based Acreage Holdings to cement its position once cannabis becomes legalized in the U.S. Buying Canopy Growth stock is a long-term play that could have enormous successes.
Organigram (NASDAQ:OGI) has reaped profits even in the middle of a highly competitive atmosphere among Canadian producers. Organigram produces medical and recreational products in 10 Canadian provinces. A single production facility in Moncton keeps costs low and production efficiency up. Its unique position across cannabis product sectors makes it appealing to a wide consumer base who like edibles, chocolates, concentrates, dissolvable powders, and other infused products.
Tilray (NASDAQ:TLRY) is focused on research, cultivation, production, and distribution of medical cannabis. Tilray’s partnership with Anheuser Busch Inbev puts them in an enviable position in the cannabis-infused beverages sector. Tilray may have the cash to sustain the troubled waters of the market and stand out on top. This pot stock is one to watch.
Best CBD Stocks
Investing in CBD and hemp-infused products can be a wise play for those who worry about cannabis’ illegal status, but still want to invest in hemp, which is now legal. When the Food and Drug Administration (FDA) removes restrictions for hemp-infused CBD in food products, stocks are going to rise as well.
If Canopy Growth enters the U.S. market, it’ll be one of the biggest companies in the hemp CBD space. Tilray has also seen tremendous growth with investments in the hemp CBD market. Other already mentioned CBD stocks include Aphria and Curaleaf Holdings.
Charlotte’s Web Holdings Inc. (OTC:CWBHF) is another beloved and renowned CBD company founded in 2011. Charlotte’s Web offers CBD oil, capsules, isolates, balms, topicals, gummies, and pet products in over 9,000 locations across the nation. In a highly competitive CBD market, Charlotte’s Web boasts a premium and trusted product line.
Best Marijuana Penny Stocks 2020
Penny stocks are the most affordable and accessible stock options for budget investors. Classified as any stock that trades for under $5 per share, cannabis penny stocks have made big moves, but can also carry a lot of risk. It’s important to diversify your portfolio to limit risk and maximize success.
If you plan on buying penny stocks, investors recommend investing between two to four percent of your investing capital in marijuana penny stocks. Here are just a few of the best marijuana penny stocks to watch out for in 2020 and moving forward.
California-based CV Sciences Inc. (OTC:CVSI) is a CBD company known for its PlusCBD oils, but also operates a drug development division focused on producing CBD-based medication. Its line of cannabis oils are sold in over 5,500 retail locations in America.
Elixinol Global Ltd. (OTC:ELXF) is a key player in the CBD and hemp skincare and dietary supplements sector. Elixinol is planning to enter the CBD pet food market and is expected to grow as the demand for hemp-infused products increases.
Canadian-based HEXO Corp. (NYSE:HEXO) has a penny stock that many investors are shying away from, but bullish ones are betting big on HEXO’s strategy. They introduced a more affordable production option to compete with the black market. Aurora Cannabis, another major Canadian producer, followed suit by offering their own cheaper product line.
Once the most popular marijuana stock, Aurora Cannabis (NYSE:ACB) is now in penny stock territory. While the road is marked with many obstacles for Aurora in the near future, it could still work its way up from the muck with a rousing performance in the Cannabis 2.0 market and by employing clever cost-cutting measures.
MediPharm Labs (OTC:MEDIF) produces pharmaceutical-grade cannabis oil and concentrates in a 70,000-square-foot facility. Its extraction services and partnerships in Canada and Australia make this penny stock one to consider for smart cannabis investors.
Fire & Flower Holdings (OTC:FFLWF) is a leader in the Canadian cannabis retail space. Their partnership with POS company Cova Software solutions can help the company expand in the U.S. Fire & Flower is also expanding in Ontario and plans to acquire locations in Ottawa and Kingston.
ETF Marijuana Stocks
Cannabis exchange-traded funds (ETFs) allow investors to dip their toe in the pool of cannabis investing. ETFs offer investors a portfolio of diverse cannabis stocks to increase gains and reduce losses. There are currently two main ETFs that focus on the cannabis industry.
Horizon Marijuana Life Sciences Index ETF (OTC:HMLSF) was the world’s first marijuana-focused ETF. Horizon’s portfolio includes Charlotte’s Web, Aurora Cannabis, Canopy Growth, Aphria, GW Pharmaceuticals, Cronos Group, Tilray, and more.
ETFMG Alternative Harvest ETF (NYSE:MJ) has its eye on the global marijuana industry. Alternative Harvest holds shares in companies such as Canopy Growth Corp, Cronos Group, Tilray, GW Pharmaceuticals, Aurora Cannabis, Hexo Corp, Aphria, Medipharm Labs, and Organigram.
Learn More About Cannabis Stocks
For more up-to-date information on the latest marijuana stock news, follow Cannabis University Training’s blog for information about the biggest and most popular marijuana stocks, cannabis biotech stocks, CBD stocks, and hemp stocks. Whether you’re looking for California marijuana stocks or cheap marijuana stocks, we cover the most pertinent information for today’s budding entrepreneur.
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