The cannabis industry is growing more than ever before.
The cannabis market picked hype back in the last year when the state legislation in the US was approved. Following that, the win of Joe Biden in the general elections played the role of catalyst in driving cannabis stocks. In the second half of 2020, cannabis stocks were one of the few to gain massively.
The bottom-line is if as an investor you are willing to go big on cannabis stocks, choose the stocks of well-run companies with strong growth prospects. We will talk about the emerging marijuana and cannabis and the potential upside of stocks in the long run.
So, let’s have a look at the three top cannabis stocks to watch for this year.
Cresco Labs (CRLBF)
Cresco Labs (CRLBF) has shown signs of being a well-positioned growth stock, as the current market for the company continues to grow. Keith Speights from The Motley Wool has been bullish on CRLBF. When he first predicted on the stock, CRLBF shares were up by 20% year-to-date. Now, the stock has soared over 60%, as of last week’s closing.
Cresco Labs is one of the leading stakeholders of the cannabis wholesaler in California. While it is the top retailer in its home state of Illinois and is currently operating in eight other states. With a market cap of $3.35 billion, Cresco is there—at the top—to go big with the rising cannabis market.
The company is working to expand its network into new markets. Recently, the company announced the closing of its acquisition of Verdant Creations dispensaries in Cincinnati, Chillicothe, Newark, and Marion, Ohio. These acquisitions would add four additional dispensaries to Cresco’s network. So, Cresco Labs (CRLBF) is one to watch this year.
Innovative Industrial Properties (IIPR)
Innovative Industrial Properties (IIPR) is the first and only real estate company listed on the NYSE that focuses on the cannabis market. The company has felt the need to be part of this new emerging market and pave way for the long-term growth.
IIRP buys properties from U.S. medical cannabis operators and then leases the properties back to them. This helps the company with much-needed cash, which gives IIPR a steady revenue stream.
Despite the unprecedented economic circumstances, the company was able to deliver phenomenal growth during the pandemic. Recently, the company released its full-year 2020 results which were quite promising. IIRP’s Acquisitions and Portfolio performance drive growth of 162% in aggregated revenues, 191% in net income, and 180% in adjusted funds from operations.
The total revenues were reported around $116.9 million and the declared dividends to common stockholders totaling $4.47 per share, a 58% increase over 2019. IIPR as a whole looks solid, so it is definitely a cannabis stock to watch for.
Canopy Growth (CGC)
A prominent cannabis company that holds much potential in the long-term. Canopy Growth (CGC) has a great start to 2021 and the shares have skyrocketed. However, recently cannabis firm has been on the downward radar of analysts.
Jefferies prognosticator Owen Bennett has downgraded his recommendation on CGC to underperform (sell) from the previous hold. The analyst has lowered the price target to $23.03 that shows a downside of 35% from the current price level.
Canopy Growth (CGC) is a well-settled cannabis company and the investors need to follow the price of the firm’s share in the coming time. If CGC shares touch around $23 per share, that would be the best opportunity for the investors to buy the stock at a low price.
