Downward pressure on top marijuana stocks
Marijuana stocks started this week in April and are showing some bearish moves in the market. One factor that likely contributed to the downturn in the cannabis sector is a disappointing report from Aphria Inc. (NASDAQ: APHA) for the third quarter of fiscal 2021. Now investors fear that this could set the tone for the quarter in the cannabis market .
Although the top US cannabis companies had strong full year 2020 sales last month, they lost significant value in March. The recent stalemate also appears to be affecting Canadian cannabis sales and overseas markets. However, as more people get vaccinated and the economy rebounds well, this could be a turning point for cannabis stocks in the market. Right now, most vertically integrated cannabis companies are also the more volatile top stocks in the market.
Because of this, many cannabis investors have turned to other areas or the cannabis market for long-term investments. In reality, the cannabis industry could grow significantly in the next five or six years. According to the BDSA’s detailed cannabis sales data, U.S. sales are projected to reach $ 41.3 billion in 2026. In addition, global cannabis sales are set to grow from $ 21.3 billion in 2020 to an estimated $ 55.9 billion in 2026. This corresponds to an average annual growth rate of more than 17%.
Cannabis invests long-term
Needless to say, there are many opportunities for investors to see growth in the industry. However, given the market volatility, investing in the cannabis sector for the long term could be difficult right now. Currently, some marijuana stocks have proven to be less volatile in the market recently.
These types of marijuana stocks could hold up much better for cannabis investors in the long run and take advantage of the growth of the cannabis industry. With the recent drop in prices for leading marijuana stocks, it may be time to add some of these top marijuana stocks to your long-term portfolio.
With the intent to dig deeper into some of the top cannabis stocks for long-term investing, let’s begin by studying companies. In essence, these marijuana stocks have shown greater stability in the market than those in the pure play sector. In addition, one of these top stocks is currently offering a dividend for shareholders. For this reason, let’s take a look at perhaps two of the best marijuana stocks to invest in for the long term.
See marijuana stocks:
GW Pharmaceuticals plc (NASDAQ: GWPH) Innovative Industrial Properties, Inc. (NYSE: IIPR)
GW Pharmaceuticals plc
GW Pharmaceuticals plc is a biopharmaceutical company focused on the discovery and development of therapeutics from its cannabinoid products. Currently, the company has had tremendous success in developing medical cannabis drugs to treat a wide variety of diseases with one drug. In detail, the company’s flagship product, Epidiolex, is used in the United States and around the world to treat seizures associated with a wide variety of serious medical conditions. Currently, Epidiolex is one of the few drugs approved for medical use by the FDA in the United States and the European Union.
GW Pharm recently announced its fourth quarter and full year 2020 financial results. The company had total revenue of $ 148.2 million for the fourth quarter and total revenue of $ 527.2 million for 2020. In addition, GW Pharms expects to complete the acquisition by Jazz Pharmaceuticals plc (NASDAQ: JAZZ) in the second quarter. In February, GW Pharm received positive feedback that EPIDYOLEX should be considered for treating seizures with TSC. After approval, the EPIDYOLEX label will be expanded to include a third application in Europe. In America, Epidolex is also used in patients with seizures and is considered safe for younger patients as young as two years of age.
GWPH stock is up 88.68% year-to-date, hitting a high of $ 218.56 in April. It closed at $ 217.77 on April 12th following the announcement of the JAZZ acquisition. According to analysts at CNN Business, GWPH stock has an average 12-month price target of $ 220.00 per share. That would be a gain of 1.03% over current levels. While that change isn’t much in the short term, GWPH stock could offer significant future upside for the medical cannabis industry over the long term.
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Innovative Industrial Properties, Inc.
Innovative Industrial Properties, Inc. is a real estate company focused on the rental of real estate exclusively to the regulated US cannabis industry. IIP currently owns 68 properties in 18 US states. In March, the company announced it had acquired a property in Texas and was expanding a real estate partnership with Parallel, a leading wellness cannabis company. On April 5, IIP expanded a real estate partnership with a subsidiary of Jushi Holdings Inc. at a manufacturing and processing facility in Pennsylvania.
In February, IIP released financial data for the fourth quarter and full year 2020. Although the company had total revenue of $ 116.9 million in 2020, up 162% from 2019, it fell short of expectations. For long-term investors, IIP declared shareholders a dividend totaling $ 4.47 per share, up 58% from 2019. In March, IIP declared its dividend for the first quarter of 2021 of $ 1.32 per share. Due to the rapidly increasing dividend and the relatively stable market movement, the IIPR share has long-term potential for investors.
IIPR stock is up 4.17% year-to-date, hitting a high of $ 222.08 in February. Currently, the stock closes at $ 191.11 on April 12th, recovering some of the losses suffered in March. According to analysts at Tip Ranks, IIPR has a 12-month average price of $ 200.00 per share. Essentially, that would be a 4.65% gain over current levels. With that in mind, IIPR stock is one of the best U.S. cannabis stocks to watch over the long term.
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The post, Looking For How To Invest In Cannabis Stocks For The Long Term? 2 With Potential In 2021, it first appeared on Marijuana Stocks | Cannabis Investments and News. Roots of an emerging industry (TM).
COMTEX_384322674 / 2683 / 2021-04-12T16: 57: 52
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