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It’s evident that the cannabis industry is taking over North America and gradually expanding its influence in other parts of the world too. Though recreational marijuana is still illegal in most parts of the planet, that didn’t stop medical cannabis from showing impressive development in the market.
Because legal marijuana sales are expected to grow 27% annually through the year 2021, the plant and its products are beginning to entice buyers to invest in marijuana stocks. Investing in this herb is considered a dream turned into reality. Though legalized marijuana is still a baby, we can’t deny that the business is thriving. There’s even a cannabis cryptocurrency now.
It’s normal to experience bouts of instability, but investing in any of these five marijuana stocks is still worth it.
The past 12 months have been both angelic and evil for the biggest Canadian medical cannabis supplier—Canopy Growth. The stock ascended nearly 45% in the middle of February and then took a plummet. In the first week of June, it was down by 25%. During summer, however, it was able to get back on its feet, with shares up 25% for the year.
Now, you might be thinking, “Why is it good to invest in Canopy Growth when its shares are clearly unstable?” It’s because the company’s center market of supplying medical cannabis in Canada is flourishing. It even reported a quarter sale of $15.9 million last June 30, 2017—that’s 127% more than the previous year and 8% more than the previous quarter.
Besides, the company is in an excellent position to gain from international expansion. Its wholly owned subsidiary called Spektrum Cannabis GmbH is also set to develop from Germany’s legalization of medical cannabis earlier this year. Canopy Growth also announced that they have two new partners from Australia and Spain. And we know that partnerships can significantly improve a company’s international sales.
Canopy Growth will also launch a market for recreational marijuana in Canada in 2018—which is the most anticipated news about them so far. Remember, they’re the largest supplier of medical cannabis in the country, which means they’ll soon enjoy massive growth once the new market launches.
Now, if you’re interested in knowing more about medical marijuana, then I would highly recommend that you check out Online Medical Marijuana Doctors. They’re starting to become a big company in this industry also.
This company is a Biotech company in the United Kingdom, and it has obtained attention because of its marijuana-based antiepileptic drug called Epidiolex. Various patients have reported experiencing 39% lower seizures than before, which is why the GW Pharmaceuticals marijuana stock is becoming more and more in demand.
Furthermore, the Food and Drug Administration (FDA) gave them a 7-year exclusive right to utilize Epidiolex to treat tuberous sclerosis complex (TSC), which is a rare condition known to cause many cases of epilepsy.
The company also had another cannabis-based drug called Sativex, which was approved to be used in treating multiple sclerosis and cancer in New Zealand and Europe.
It’s wise to invest in GW because they have almost 0 debt and are expected to experience an increase in sales.
The third stock on our list began trading publicly just May of this year. The shares have weakened during those times, but over the past weeks, the MedReleaf stock has escalated more than 20%.
It’s the second biggest medical cannabis supplier in Canada when it comes to revenue. It stands to gain from several of the similar factors as Canopy Growth. Last June 30, it reported a 19% year-over-year rise in sales.
The MedReleaf will also benefit from increased market share because of its cannabis oil products.
Like our number one marijuana stock, MedReleaf is also in a great international position. It has Australian partners that aim to receive a green light from regulators in the country to grow and sell medical cannabis. Its subsidiary, MedReleaf Germany GmbH, is also processing its authorization to sell medical marijuana in Germany.
Just so you know, MedReleaf lays claim to one of the best cost structures among Canadian medical cannabis suppliers too.
The fourth one on the list is a leading marijuana stock selling the famed marijuana-based drug called Marinol. AbbVie, Inc. is a pharmaceutical company that has reported increased revenues for four years straight, excluding its operating income—which has also ascended continuously.
Marinol is an FDA-approved drug that helps lessen nausea and vomiting in patients undergoing chemotherapy. It’s also been reported to be effective in stimulating hunger in people with AIDS. However, though it’s popular, it’s not one of the top-selling drugs. In fact, you might find the earnings discouraging. But that doesn’t mean you shouldn’t invest in AbbVie, Inc. Take note that the company is also marketing different drugs other than Marinol.
However, I have a warning for you: AbbVie, Inc. focuses almost only on the U.S. market, which means investing in them might be risky because the stock’s price solely relies on its drugs’ domestic values.
If you look at the record of this company for the past three years, you might wonder why it’s included here. True, it had its ups and downs, but it has been working on a new product—a synthetic cannabis drug that will cure juvenile epilepsy. It also recently introduced Syndros, a marijuana-based product that will help lessen nausea induced by chemotherapy and combat weight loss related to AIDS.
Though INSYS also markets various non-marijuana drugs, it’s still experiencing a financial stagnation until now. Its operating income even took a downfall by the end of 2016. It even faced legal problems when it was sued for fraud in relation to its marketing campaign for a pain-killing opioid called Subsys.
Nonetheless, experts forecast that this marijuana stock will rise faster than the marijuana industry’s expected growth of 26% with 28% yearly earnings growth over the next five years.
Investing in stocks is risky indeed, but if you’re wise enough to study the stock and its demand, you’ll get good results in the end.