- Why is it a Good Decision to Invest in Pot Stocks?
- Aurora Cannabis (Ticker: ACB)
- Aphria (Ticker: APHA)
- Cronos Group (Ticker:CRON)
- GW Pharmaceuticals (Ticker: GWPH)
- Trulieve Cannabis (Ticker: TCNNF)
- Curaleaf (Ticker: CURLF)
- Green Thumb Industries (Ticker: GTBIF)
- Canopy Growth (Ticker: CGC)
- Cresco Labs (Ticker: CRLBF)
- Harvest Health & Recreation (Ticker HRVSF)
The beginning of 2020 was not the best time for the pot stocks. However, numbers were a bit higher than the worst nightmares of investors, which is a good sign for the whole industry. Additionally, cannabis stocks were supported by the research made by the University of Lethbridge, which reports about the health benefits of cannabidiol. The global marijuana market still has enormous growth potential because of a possibility of the United States lifting marijuana ban. Below you can find ten top ten cannabis stocks 2020 that can be added to your watchlist.
Why is it a Good Decision to Invest in Pot Stocks?
The legalization of marijuana spreads across the United States. This is one of the main reasons for the growing investors’ interest towards this industry. Nine states have already legalized recreational marijuana while 29 states have legalized medical weed.
Aurora Cannabis (Ticker: ACB)
Aurora Cannabis developed its downtrend in 2020. The lowest level of the year was at 7.80. Aurora's stock price rebounded from that level later. Why is this stock worth your attention? There are some positive indicators including the upcoming merger of Aphria and Aurora that will create a new leader of the industry. Another positive thing is that the US elections may change the situation with the United States marijuana ban legislation. If this ban is lifted, the industry may have huge growth and Aurora Cannabis will definitely benefit from this merger.
The Aurora Cannabis' stock price is considered to be overvalued by the Yahoo Finance fair price indicator. However, the situation is likely to change if positive signals will come in the nearest future.
- Market capitalization – 1.347 billion USD
- PE Ratio – 55.0
- EPS – 0.22
- Current ratio – 3.17
Aphria (Ticker: APHA)
This is another big player in the cannabis industry. The upcoming merger with Aurora Cannabis can be the greatest deal in this sector that will support both companies. Aphria has outperformed almost all its rivals in the past two trimesters. The company have shown great total revenue growth in 2019 hitting $237,110 after two years of a very modest total revenue growth.
Aphria's stock price is considered to be overvalued by the Yahoo Finance but the whole market looks promising due to the possible changes in the U.S. legislation.
- Market capitalization – $1.391 billion
- PE Ratio – 17.49
- EPS – 0.30
- Current ratio – 5.19
Cronos Group (Ticker:CRON)
The company has reported 180% YoY revenue growth in the first half of 2020. However, they have another large surge in operating losses. The Canadian market suffers from oversupply which may lead to additional charges. Nevertheless, Cronos has a great $1.1 billion cash position and has some minor investments in Atria group. Due to such a strong balance sheet, the company is able to focus on international business where there are more opportunities including higher prices and margins.
Cronos Group's stock price is considered to be overvalued by the Yahoo Finance fair price indicator. This is normal as the situation at the local Canadian pot market remains difficult. The oversupply makes the stock price going down, but Cronos operates on the international market as well and the stock price has more space to grow.
- Market capitalization – $2.335 billion
- PE Ratio – 2.48
- EPS – 2.71
- Current ratio – 6.97
GW Pharmaceuticals (Ticker: GWPH)
GW Pharmaceutical is one of the best marijuana stocks to invest. This is a biopharmaceutical company, which is specialized in cannabinoid-based drugs. The list of products includes its Epidiolex drug, which is a federally approved medicine to treat epilepsy. This drug is also under approval to treat tuberous sclerosis complex. Epidiolex is going to be launched in Europe as well. Moreover, GW Pharmaceutical has more promising projects on the way.
GW Pharmaceutical has an overvalued reading, according to the Yahoo Finance fair price indicator. The company’s revenues have significantly increased in 2019 by jumping over a level of $300 million. The company has several incoming products on the way, which is another good indicator to add its shares to a portfolio.
- Market capitalization – $3.955 billion
- PE Ratio – 122.92
- EPS – 1.07
- Current ratio – 6.50
Trulieve Cannabis (Ticker: TCNNF)
This company operates in many U.S states. Its HQ is in Florida. Trulieve Cannabis has reported 21% growth in the first trimester and managed to open three more stores in Florida at the beginning of 2020. The company did a great job in 2019 by reaching its record revenue and earnings growth levels.
The company has great positions and is considered to be a great performer in the nearest future.
- Market capitalization – $1.68 billion
- PE Ratio – 9.97
- EPS – 1.53
- Current ratio – 5.23
Curaleaf (Ticker: CURLF)
Curaleaf is the largest US Multi-State company with capitalization around $3.8 billion. The company has completed two merger deals with Select and Grassroots and became the owner of 74 stores and 25 cultivation facilities. Curaleaf has licenses for 131 stores in total. The company is presented in 19 states.
- Market capitalization – $3.8 billion
- PE Ratio – N/A
- EPS – -0.15
- Current ratio – 2.74
Green Thumb Industries (Ticker: GTBIF)
This is another cannabis stock to buy now if you want to add some to your portfolio. Green Thumb is a MSO, based in Chicago. It has attractive valuation as compared to its main rivals. Moreover, the company has a bullish longterm outlook. Green Thumb is likely to benefit from the upcoming bullish catalyst including the U.S federal cannabis regulations.
The company has seen huge revenue growth almost hitting $220 million in 2019 when compared with the previous years. However, the earnings had a significant decline in the same period by establishing an anti-record of almost $60 million.
- Market capitalization – $2.552 billion
- PE Ratio – N/A
- EPS – -0.27
- Current ratio – 1.10
Canopy Growth (Ticker: CGC)
This company is the largest legal cannabis firm based on the number of sales in the world. It has also the biggest market capitalization when compared to its peers. Why may this stock attract your attention? The first reason is that the company has the largest market share and solid balance sheet. The company’s new management board is ready for aggressive initiatives including reducing expenses.
The canopy growth is the leading company in the sector. The stock price is considered to be overvalued by the Yahoo Finance fair price indicator but if the U.S changes cannabis legislation, the company may have further growth considering its top industry positions.
- Market capitalization – $6.154 billion
- PE Ratio – N/A
- EPS – -1.79
- Current ratio – 6.10
Cresco Labs (Ticker: CRLBF)
This Chicago based MSO has an attractive evaluation when compared to its main rivals. The short-term growth plans of the company are well-funded. Cresco Labs is rapidly expanding its resources in Illinois and Pennsylvania, which may be a great catalyst for the company’s growth in the second half of 2020. Those two states may become the ground for Cresco Labs growth giving the company 80% of its yearly sales. Moreover, the company is trying to step in other sites, including Massachusetts, New York, and Michigan.
The company’s revenue growth has hit its record in 2019 by reaching a $120 million level. However, as for the earnings, they are far from being positive with a -$40 million mark in 2019.
- Market capitalization – $1.045 billion
- PE Ratio – N/A
- EPS – -0.33
- Current ratio – 1.53
Harvest Health & Recreation (Ticker HRVSF)
The company generates its sales mostly in Arizona. The two-thirds of revenue comes from selling third party brands. Harvest Health & Recreation shares are currently overvalued, but the company has more growth potential, including the pending merger with Verano Holdings.
The company’s share price is below $1 but it is far from the all-time highs, which gives some space for the stock to grow.
- Market capitalization – $336.022
- PE Ratio – N/A
- EPS – -0.59
- Current ratio – 2.12
This is not the full list of companies that you may pay attention to in order to diversify your portfolio with pot stocks. However, the companies we have listed here are worth your attention as they have great performance and are looking very promising.