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With the job market uncertain, many are wondering the top marijuana stocks to eye in July 2020. Marijuana stocks started the year on a low, like most other stocks that took a plunge as a result of the global pandemic.
An overview of the market doesn’t show an encouraging picture; over the last year marijuana stocks have underperformed the broader market significantly. However, a couple of stocks have performed better than expected over the last month.
Marijuana companies listed on the stock exchange are involved in the cultivation, manufacture, or selling of marijuana products. They could also be involved in cannabis research. Some of the biggest marijuana companies in the market currently include Canopy Growth, GW Pharmaceuticals, and Cronos Group. Here are some of the most promising stocks to follow in the next quarter.
Marijuana Stocks with the Best Value
Young companies that have not yet achieved profitability can present a unique opportunity for investment. Companies with a low trailing price-to-sales (P/S) ratio tend to have the best value as this is a reflection of the value gotten for each invested dollar.
Village Farms International Inc
This is a cannabis company that is involved in cannabis cultivation. The company is based out of Canada and has been on the radar of many investors since the beginning of the year. Generally it has been going against the downward tide by posting positive revenues, though it posted a 35% decline in net profit in Q1. This company was previously involved in the cultivation of horticultural crops before they switched to cannabis. The general market sentiment is that this is an undervalued stock
Amyris is involved in industrial biotechnology that produces high quality health and wellness and beauty products. Some of the products that they produce are made from cannabis. Unlike most companies, Amyris Inc. posted positive revenue growth exceeding 100% in the first quarter of 2020.
Amyris recently partnered with AB Mauri North America to reduce sugar in baking products. It seems like the beauty and wellness industry is staying afloat in spite of the pandemic and Amyris Inc. is benefitting from this. The strong business structure of this company could also be a contributing factor.
Aphria is one marijuana stock with a huge following. Aphria shares more than doubled in the last quarter, posting a 78% return in the same period. This means that this stock has beaten the pandemic related recession. While the stock can still be bought for dirt cheap, the value is likely to soar in the near future.
Fastest Growing Marijuana Stocks
These marijuana stocks have shown positive revenue growth in the last 12 months. This is an indication of stable structures and good leadership in the company. It also helps to measure the performance of companies that are yet to achieve profitability.
Harvest Health & Recreation Inc
Harvest Health & Recreation is a cannabis company that is involved in the cultivation, production and distribution of cannabis products through cannabis dispensaries. The company which is headquartered in Arizona recently acquired Franklin Labs LLC which is a subsidiary of Cannapharmacy.
Harvest and Health appears to be coming out of the woods with a majority of analysts predicting a bullish pattern in the near future. The bulls have their eyes on a price of $4.37.
The Valens Company
The Valens Company produces end-to-end cannabinoid-based therapies. Recently they entered into a distribution agreement with one of the largest cannabis companies in Australia- Cannvalate Pty. This could see them greatly multiply their sales as Australia is an emerging cannabis market with untapped potential.
Green Thumb Industries Inc
Green Thumb Industries is a vertically integrated company that manufactures plant based therapies aka cannabis and distributes them through various outlets in the US. The company which was founded in 2002 is headquartered in Chicago, US but incorporated in BC, Canada.
In March the GTI stock fell to a low of 5.05 but has since made a significant recovery by rising 100 fold to a value of 10.01.GTI performed impressively well in the first quarter of 2020 which caused its share price to soar. This is one stock to watch in the second quarter of the year.
Marijuana Stocks with the Greatest Momentum
Some marijuana companies have managed to post high turnovers in the last one year. This is a good sign for investors who are drawn by activity.
Trulieve Cannabis Corp
Trulieve Cannabis is involved in the cultivation, production, and distribution of medical cannabis products. The company recently appointed a new financial controller- Alex D'Amico effective 1 June 2020. The company has been profitable and posting good turnovers.
However it still has a lot of room for expansion and presents an opportunity for both a short and long-term buy.
Cara Therapeutics Inc
Cara Therapeutics is a unique cannabis company that is involved in cannabis research and the development of cannabis based pharmaceutical products. Cara Therapeutics reported an 85% revenue growth in the first quarter of 2020.
Learn What it Takes to Do Business in the Cannabis Industry
The stock market has been performing dismally, even though some stocks have managed to outperform investors’ expectations. As we prepare for the post COVID-19 rebound, these are the top marijuana stocks to have your gaze on as from July 2020.
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Fred Hernandez is a highly accomplished and versatile writer, boasting an extensive background in the cannabis industry. With an in-depth understanding of various sectors including cultivators, processors, retailers, and brands, Fred's expertise spans across the entire cannabis landscape. As a prominent contributor to CTU, he consistently delivers insightful articles exploring the latest developments, news, and regulations shaping the cannabis industry. Whether it's delving into the intricacies of cannabis products, cannabis strain reviews, or providing comprehensive analyses of cannabis laws, or sharing expert insights on cannabis cultivation techniques, Fred's wealth of knowledge positions him as an invaluable writer and educator for all cannabis-related subjects.