Cannabis stocks are foreseeing a bright future ahead with the potential legalization of marijuana in the U.S. Let’s have a look at the best stocks for long-term growth.
Canadian cannabis companies are the most well-positioned firms in the market today. They have widespread operations and a solid customer base. The emerging market of cannabis brings a massive opportunity for investors for potential long-term investment.
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However, at the moment, things might not seem that clear for the investors. The clouds will start to vanish once the Biden government takes control of the government. All five states of the U.S. have passed legalization for marijuana and its use in recreational and medical production.
Here are the three best cannabis stocks for long-term investment.
Canopy Growth (CGC)
In 2019, the company made notable progress in improving revenue, cutting costs, and introducing new cannabis derivatives. Canopy continued its growth with a strong balance sheet which kept the investors interested.
For companies like Canopy which are evolving in the new market must have strong capital. The Ontario based cannabis firm has all the basics covered. Recently, the company successfully collaborated with U.S. beverage titan Constellation Brands in late 2017. Later on, the partnership went on to a $246 million investment in the marijuana company. The strong capital flow helped the company to continue its operations in hard times.
In that premise, the company also continues to apply the cutting cost strategy despite having cash on hand. The cannabis firm has soared over 23% year-to-date, whereas its counterpart Aurora Cannabis plunged by 66%.
The company is doing well and is focusing on revenue growth and cutting costs. Also, Canopy Growth (CGC) has plans to expand its network into new markets. This will explore new economies for the cannabis producer.
So, Canopy Growth is a valuable investment if you are looking to go for long-term growth.
GW Pharmaceuticals (GWPH)
GW Pharmaceuticals (GWPH) is a British pharma enterprise that is famous for its multiple sclerosis treatment product nabiximols. Its popular nabiximols was the first-ever natural cannabis plant product that obtained approval in any country.
The company is swiftly growing as the demand for cannabis is increasing with time. Also, the company is reporting increased prescriptions for Epidiolex in each quarter. The patients are coming in number that keeps renewing these prescriptions.
The company has not updated with its new plans for the next year. However, it is anticipated that the use of off-label will lead to more sales of its pharma products.
GW is getting attractive results for its cannabidiol-based epilepsy drug. The company estimated around $132.6 million in sales for Epidiolex in Q3 2020. While the sales in the U.S. were around $121.6 million.
The aggregate revenue for GW Pharmaceuticals in the third quarter was $137.1, almost $46.1 million more than from the prior year. The net losses in Q3 dropped to $12.2 million from $13.8 million in the same period last year.
All in all, GW Pharmaceuticals (GWPH) is strongly positioned for a massive boom in the upcoming bullish run. The long-term prospects are even bigger and better as the industry will continue to grow in the coming years.
The largest hydroponic garden-center chain in North America, GrowGeneration (GRW) had a stellar year. The booming U.S. cannabis industry has opened doorways to felicity for the marijuana firm. So far this year, GRW stock has soared over 700%, making it one of the top-performing cannabis stocks in the market.
The company is more focused on its cannabis business, but it is also selling other types of gardeners. The customers of GrowGeneration have significantly increased this year. The growing demand for cannabis is driving a new wave of customers into the market.
Investors are highly driven by the $1.6 billion retailers, which sell products used to grow pot. The potential is there and the opportunity is massive, GRW is going to enjoy its time in the coming years.
The CEO of the company, Darren Lampert stated that their success is directly linked with the growth of the cannabis industry, which is exploding.
The company has upgraded its outlook for 2021 with revenue expected around $300 million, up by a whopping 1,000% compared to $30 million in 2018. Also, GrowGeneration (GRW) is planning to have over 50 locations in 12 states by the next year.
With stunning growth already this year, the company has much more in its tank to deliver. So, GRW stock is one of the perfect buys in the cannabis market at the moment.