The cannabis stock market is hot and several choices are ripe for selection
There is increasingly more attention being placed on the marijuana stock markets. It is the fastest-growing area on Wall Street, yet many prices are still accessible by almost all investors. While there are still limitations on who can invest in which companies, there is now a growing list of legitimate marijuana stocks and they’re almost definitely going to keep rising.
One of the most often mentioned names in the marijuana community is Canopy Growth (NYSE ticker symbol CGC). The Canada-based company grows and sells recreational and medical marijuana and was the first publicly traded cannabis company in North America. By the end of last year, it had quadrupled its sales from just a year prior and had a total of $63 million in sales for the entire year.
Aurora Cannabis isn’t far behind. It is diligently and tirelessly working on a global expansion project and its efforts are paying off, with new deals signed on what seems like almost a daily basis. It is traded on the NYSE under the symbol ACB and the company has higher margins due to its specialty products and price stability that is being driven by an increasing market.
Cronos Group saw the maker of Marlboro cigarettes, the Altria Group, purchase 45% of the company for $1.8 billion last year. That gave the company a serious boost, as it opened the door for Cronos to tap into the tobacco giant’s extensive and global supply chains to launch its products as legalization becomes mainstream across the planet. Cronos is found on NASDAQ under the ticker symbol CRON.
Constellation Brands isn’t a cannabis company; rather, it produces Corona beer, wines and a wide range of alcoholic beverages. However, the company took a 38% stake in Canopy Growth, spending $4 billion in the process, and that combination is making it a strong buy as the cannabis beverage industry heats up. Traded on the NYSE under the ticker STZ, it is a relatively safe purchase, as it still has its beverage business to shore it up.
Tilray is one of the newer marijuana stocks, but don’t let that be a deterrent. It has been moving fast and its stock, NASDAQ’s TLRY, went from $20 to $200 in only a few short months. It focuses on research, production and distribution of medical cannabis and is currently expanding.
Aphria produces and sells medical cannabis and is currently involved in negotiations for several international acquisitions. Traded under the ticker APHA on the NYSE, it is remaining strong, but not as strong as some of the others. However, with production facilities of 300,000 square feet, it is ready to take on the world and has proven that it knows what it’s doing.