Two cannabis stocks may be a little less secure, but the payout is making them attractive
The fluctuation in marijuana stock prices has a lot of investors on edge, but the roller coaster ride is going to come to an end. If anything, investors should be relishing the moment, thankful that prices have become more accessible ahead of what is going to be a definite growth explosion over the next couple of years. Two stocks in particular may seem more volatile than most, but they offer greater rewards for the risk and both are almost certainly going to bounce higher than ever.
Hexo is leveraging its business in new ways in an effort to become a worldwide household brand. It wants to set up partnerships with major companies, such as Kraft Heinz Co., PepsiCo Inc. and Procter & Gamble Co., and is working to establish itself as a reputable company worthy of attention from all sorts of Fortune 500 companies. It has some interesting developments coming and is also working hard on its own production capabilities in an effort to gain strength. If it were to consummate all of its plans, Hexo is expected to double, possibly triple, in price. Currently trading at $4.17 on the NYSE, this low-cost stock is a temptation that shouldn’t be ignored.
Canopy Growth Corp is another that is right on the edge. Its partnership with Constellation Brands, which invested $5 billion in the company, is giving it a steady platform upon which to build and it always remains just inches away from a major breakout. This proximity to growth, without achieving it, has caused Constellation to admonish the company, but patience is a virtue. Canopy Growth has 90 issued patents, 240 patents pending and continues to improve its operations. Its revenue grew by 400% in 2018 and has consistently been highlighted as one of the strongest cannabis companies in the industry. Currently, its market cap sits at $11 billion and analysts believe that it could explode 500%. However, that growth could be as far away as ten years, which means any investor who wants to put their money behind the company will have to be extremely patient. Canopy is trading at $24.53 on the NYSE, which is six times more than Hexo, but its growth potential is much greater.