Canopy Growth is the most valuable stock in an overvalued market

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The cannabis company is still the best bet for those looking for a long-term investment

If you’re looking for a marijuana stock and aren’t sure where to go because of the lack of historical data, one company is standing out. Analysts believe that almost all of the cannabis companies are overvalued, but Canopy Growth (CGC) reportedly has the strongest possibilities of providing greater realistic returns, if investors are willing to let their investment ride for long-term results.

SellsSpreads.com’s Nicolas Chahine asserts, “It is almost never the case that the companies who started the movement get to thrive in the end. The cannabis industry, although it’s as popular as bacon, is still unproven as a public business concept. So, from an investment perspective, it’s a more of a bet than a fundamental thesis.”

He explains that CGC is in the best position to counter the limitations, stating, “CGC has the best odds of winning since it has the fattest balance sheet, thanks to the $4 billion cash infusion it received from Constellation Brands (NYSE: STZ ). So, CGC will have the best tools to bring to fruition whatever potential the cannabis industry has.”

CGC continues to trade in an extremely tight range and continues to defend its February lows. While a breakout is expected, it cannot be completely determined which way the needle will shift. However, recent support seems to indicate that the company’s price could soon surpass $49.

While investors typically look to the historical data to determine how to place their investments, this is counterintuitive in many cases. What should really be viewed is where the company is, where it’s headed, what it is able to produce and what its executive makeup looks like.