7 Medical Marijuana Stocks For Your Waiting Room

It has not been easy to be bullish on marijuana stocks in recent years. After entering the market with its own bubble in 2018, pot stocks have had a tough time. But that seems to be changing. And it could be medical marijuana that shows the way.

According to the company Data Bridge market research, the Average Annual Growth Rate (CAGR) of the global medical marijuana market is expected to be 20.25% by 2027. That would estimate the market at roughly $ 82 billion in six years. And it would top that too CAGR of the entire marijuana market Which Grand View Research has at 14.3% by 2028.

There are several reasons for this expected growth. First, we have an aging population looking for alternatives to traditional pain relief solutions. Second, in addition to providing pain relief, marijuana is most commonly used for conditions such as anxiety and depression, which are common across all demographic categories. Another reason is that states are trying to fix budget ceilings and need the revenue cannabis can provide.

And just like in the recreational market, the United States is likely to lead that fee. Even before President Joe Biden’s administration set cannabis cops on fire over the prospect of legalizing marijuana, a majority of the United States had already legalized marijuana for medical purposes. Today that number is 35 states.

Cannabis is still a volatile sector. Only you can determine the right time to enter a position or to add to an existing one. However, here are seven medical marijuana stocks that you should have on your watchlist.

• Canopy growth (NASDAQ:CGC)
• Hexo (NYSE:HEXO)
• GW Pharmaceuticals (NASDAQ:GWPH)
• Cronos (NASDAQ:CRON)
• Cresco Labs (OTCMKTS:CRLBF)
• Curaleaf (OTCMKTS:CURLF)
• Innovative industrial real estate (NYSE:IIPR)

Marijuana stocks: Canopy Growth (CGC)

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When it comes to marijuana stocks, Canopy Growth is on the list. In fact, Canopy is fair to start with. With a market capitalization of around $ 10 billion, the company is the largest cannabis company in the world. Although Canopy has only had one profitable quarter, it is starting to see revenue growth, mostly in its home country of Canada. Indeed, in its final quarterCanopy achieved record sales of $ 153 million.

Canopy also sells medical marijuana internationally, including Germany, another large market. However, the company will have the best opportunity to deliver to the extent necessary once the US is fully open to business. The reason for this $ 4 billion optimism lies in the investment of Constellation Brands (NYSE:STZ). Constellation is working with Canopy to develop one Line of cannabis infused beverages. However, this will give Canopy a toe grip in the US as well.

CGC stock is up 82% in the past 12 months, but only 7% in 2021.

Hexo (HEXO)

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Hexo is another medical marijuana stock that has tried to capitalize on the infused beverage market. However, Hexo’s relationship is too Molson Coors (NYSE:TAP) did not go as planned. But Hexo takes another bite at the acquisition apple. This time is the goal Zenabis Global (OTCMKTS:ZBISF), Which Hexo acquires for $ 186 million.

This goes without saying as the cannabis sector is entering the consolidation phase of its business cycle. With this acquisition, Hexo is making a strong case for being here in the long run. Hexo isn’t one of the largest cannabis companies out there. In fact, analysts are forecasting an increase in sales of around 25% for 2021.

However, analysts are more impressed with the company’s diversified product line, which the acquisition of Zenabis expands. And Hexo’s home province of Quebec is Ontario’s largest (by population). While Quebec is struggling to get up and running, Hexo is capable of being a big winner as conditions improve.

The HEXO share has risen 168% in the past 12 months and has gained 43% so far in 2021.

GW Pharmaceuticals (GWPH)

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GW Pharmaceuticals has more of a biotech feel than a cannabis company. The company’s best-known product and the top-selling product is Epidiolex, a CBD drug approved for use in the US and Europe.

The good news is that in 2020 Epidiolex had a 70% year-over-year sales increase for sales of $ 510.5 million. The bad news is that Epidiolex made up to about $ 17 million in annual sales for the company.

Reason enough to include GWPH shares on this list. But since the announcement that it will be acquired by Jazz Pharmaceuticals (NASDAQ:JAZZ) the share rose even further. At about $ 5 above the merger price of $ 214 at the time of this writing, GWPH stock is not your best bet. However, once the merger is complete, Epidiolex is likely to be a growth driver for the new company. And GW has other products in the pipeline.

Cronos (CRON)

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At one point this year, CRON stock was up 124%. And that wasn’t because Cronos was a meme inventory. The investors were delighted with the company’s partnership Altria (NYSE:MO), which has brought financial stability to the company. Altria has a $ 1.8 billion stake in the company, which focuses on the supply of cannabidiol (CBD) wellness products. The company has international production and distribution on five continents.

If you’re considering investing in marijuana stocks in 2021, you need to pay attention to the differentiation cannabis companies offer. For Cronos, this means focusing on developing intellectual property that is changing the way cannabis products are made. If the company is successful with initiatives like laboratory-grown cannabis, they will become a much more competitive player in the sector.

The company is not yet consistently profitable, but has posted positive non-GAAP results for two of the past four quarters. In addition, Cronos achieved a 97% increase in sales in 2020 over the previous year. The company has set new sales records in each of the last two quarters.

Cresco Labs (CRLBF)

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Cresco Labs is the first of two Multi-State Operators (MSOs) to compile this list of medical marijuana stocks. What the US market could ultimately become is unclear. But until marijuana is legalized at the federal level, MSOs will lead the way.

Cresco operates in nine states with a total of 19 retail locations. The big price for Cresco is the California market, which has the largest market for legal marijuana in the country.

Prior to 2021, Cresco Labs rewarded investors with slow and steady growth. But that changed in February. CRLBF stock went into the market frenzy, rising 43% in the first few weeks of trading. The stock has given up most of those gains, but with the expectation that the company will open more retail locations, including in California, the company has more room for growth.

Especially for its medical marijuana endeavors, Cresco recently acquired Bluma Wellness, another vertically integrated company. This gives Cresco an exposure to the Florida market.

Curaleaf (CURLF)

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The operational term for Curaleaf in 2020 was “growth through acquisition”. And the company is not done with growth yet. Curaleaf operates in 23 states and is the largest medical marijuana distributor in New Jersey. With New Jerseys The upcoming legalization date is getting closerCURLF is likely to see a significant decline in business in a state where it already has a significant market share.

And unlike Canadian cannabis companies trying to get into the US, Curaleaf is successfully exporting to other markets like Europe, where a CAGR of 29.6% is forecast by 2027. Here, too, Curaleaf is forecasting growth through acquisitions. In this case, the target is EMMAC Life Sciences Group, Europe’s largest independent cannabis company.

In addition to the company’s revenue growth, Curaleaf is demonstrating the ability to slow cash burn. This leads some analysts to believe the company could turn profitable in 2021.

Among analysts, Curaleaf has a consensus buy rating and a price target of $ 22.50. That would be a 43% gain over the current share price.

Innovative industrial real estate (IIPR)

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The final stock of medical marijuana is Innovative Industrial Properties. For strangers, the company is not a breeder or dealer. It is a real estate investment trust (REIT) and the leading real estate provider for the medical cannabis industry in the United States.

Innovative industrial real estate offers cannabis companies air-conditioned greenhouses. This enables organizations, especially MSOs, to scale quickly. And IIP (which buys real estate from medical marijuana companies) receives the constant income generated by letting the real estate back to the operators.

The company currently operates in 17 states, up from 14 in 2019. Unlike other companies on this list, it is profitable. In addition, as a REIT, the company must repay at least 90% of its taxable income to investors through a dividend. And the IIPR share offers investors good growth potential. It’s up 143% in the past 12 months.

At the time of this writing, Chris Markoch held positions (neither directly nor indirectly) in the securities identified in this article.

Chris Markoch is a freelance finance copywriter who has covered the market for seven years. He has been writing for Investor Place since 2019.