These two marijuana stocks are almost guaranteed to continue to improve
The marijuana industry is still just getting up and running. There are ten states that have legalized recreational marijuana use and that number is expected to grow over the course of the next two years. However, it’s also important to consider where other countries such as Canada and Mexico stand on the subject. As the industry matures, the marijuana stock market is going to improve and will see participation by a large number of companies, most of which do not have a solid history upon which to build a strong analysis. If you’re looking to get into the marijuana stock trading game, perhaps these two options are the safest, giving you the ability to test the waters and see how things go.
The first option is Canopy Growth. It is one of only a handful of companies that has seen positive growth this year and its year-to-date (YTD) gains have topped 33%. This is substantial for any company, but for one that is operating in the nascent marijuana industry, it’s even more impressive.
Canopy now has agreements to supply products all across Canada. This trend is expected to continue moving forward and the fact that it is expected to enter the U.S. market within the year gives it an additional boost.
Canopy is also expanding into South America and Germany. If that weren’t enough to give it a serious amount of stability, Constellation Brands – the company behind Corona beer – has given the company an investment of $4 billion and a partnership to offer cannabis-infused beverages is more than likely on the way.
Cronos Group is also a virtual sure-thing. It has entered into supply agreements with companies across Canada, as has Canopy, and has conducted a string of acquisitions to help it increase its portfolio. Those efforts have paid off and the company has received YTD gains of 63%.
One of the biggest pieces of news to hit the marijuana industry this year came earlier this month when Marlboro cigarette manufacturer Altria Group announced that it had purchased $1.8 billion in Cronos stock. While it wasn’t as large an investment as that of Constellation into Canopy, the strength of Altria and its rumored plans to get into marijuana are breathing fresh life into Cronos.
Both Canopy and Cronos are here to stay, regardless of what happens with the rest of the markets. The investments by Constellation and Altria give them the backing they need to weather any storm and to keep on sailing.
